Navigating European Fintech Licensing: The Benefits of Buying a Financial Permit

In Europe, investment advisors, fintech companies, insurance firms, payment service providers, e-money institutions, and securities brokers are subject to higher risk management and regulatory requirements.

Licensing financial institutions in a European member state opens up many business opportunities to offer services in other states.

Therefore, buying a fintech permit can save you a lot of time needed for licensing, not to mention facilitating the process of starting a business.

Fintech License Types

You can obtain the following fintech licenses to legally work on the European territory:

Preferred Jurisdictions

Europe is home to the world’s innovative and vibrant fintechs. However, one question that most people ask is, what countries in Europe prefer to get a fintech license the most? This is a good question since some European countries stand out more. Here are some of the countries that emerge as one of the best jurisdictions to get a fintech license:

All these stand out for different reasons. Compared to other European countries, they are mostly known for their economic/political stability and regulator efficiency. Their regulators are commonly known for their standard practices in terms of AML/CFT and regulatory compliance.

While some countries charge low fees for fintech license applications, these countries don’t provide the same high level of compliance and regulatory oversight.

Getting a License

Financial companies must consider different factors when applying for a fintech license. These include the following:

1.      Prepare a Solid Business Plan

A solid business is the cornerstone of fintech application. It must include risk management frameworks, business models, operational plans, and market analysis.

2.      Establish Legal Entities

Establish legal entities in the EU countries where you plan to apply for a license. This might include a physical presence, firm registration, and the appointment of officers/directors.

3.      Develop a Solid Policy

Regulators are placing more emphasis on fintech policies. Your company needs to train workers on compliance practices, implement systems to monitor transactions for suspicious activities, maintain detailed records, and verify customer identities.

4.      Regulatory Landscape

Requirements for getting a fintech license vary from one country to another. However, it is mostly governed by main EU directives, like:

In conclusion, there are various fintech companies to consider, with various regulatory requirements. Based on whether your company is an e-money provider, a crypto payment app, or a payment institution can impact the type of regulatory approval that you need.