Prestigious banking license opening all wealthy European banking market of 500 million consumers. Equity capital of Specialised Bank – EUR 1 mil., Bank – EUR 5 mil. Licensing time – 6 months.
According to the European Regulation (EU) No 575/2013, only the Banks as Credit Institutions have exclusive right to accept deposits and other repayable funds from non-professional market participants and provide full scale banking lending. Banks licensed in one European Union (EU) member state allowed offering all banking services in single European financial market of 28 member states, 500 million wealthy consumers and 20 over million businesses.
Specialised Bank – unique pan-European banking license
From January 1, 2017 EU member state Lithuania introduced a new type of banking license – Specialised Bank, which is unique finance institution in EU and European Economic Area (EEA) jurisdictions.
Banking services provided by Specialised Bank in European markets:
- Payment services;
- Receipt of deposits;
- Currency exchange;
- Issuing of e-money;
- Issuing guarantees;
- Fund administration;
- Financial leasing;
- Financial intermediation;
- Creditworthiness assessment services;
- Safe-deposit box rental.
…and other banking services.
Specialised Bank is restricted to provide investment or pension fund management, public offering of securities and other similar services. This disadvantage can be easily dissolved by registering separate Brokerage http://ecovis.lt/fintech/securities-brokers-forex-dealers/ or Investment Management company http://ecovis.lt/investment-funds/.
Instant access to single European banking market at low cost
Licensed Specialised Bank/Bank provides significant competitive advantage and opens up European financial market at significantly lower incorporation and operational costs.
Lithuania and primarily its capital Vilnius became a new hub for European banking service centres. Favourable regulatory and tax environment, excellent infrastructure, the fastest internet, cheap office space and quality pool of relatively cheap labour force makes Vilnius attractive for large international banking institutions and FinTech start-ups. Operational costs became vital in today’s financial business. New FinTech companies challenging traditional banking institutions and cutting margins. This is the main reason why traditional finance institutions and FinTech start-ups discovering Lithuania. They need jurisdictions opening large single European market and allowing create safe, efficient and cost effective banking institution ready to face intense competition in EU/EEA banking market. Lithuanian “light” banking license of Specialised Bank is exactly what they need. It opens all single EU/EEA banking market, including large national markets such as French or German at significantly lower costs.
UK giant Barclays Bank operates Barclays Technologies Centre Lithuania in Vilnius from 2009, offering services to Barclays businesses across the world. Scandinavian rivals SEB, Swedbank, Danske Bank as well as finance industry
leader Western Union, world’s biggest stock exchange operator NASDAQ have service centres and operates their global business from Vilnius.
The reasons why Lithuania is one of the top banking jurisdictions in EU/EEA:
- Fast licensing process. Issue of the license within period of 6 months.
- Equity capital of Specialised Bank – EUR 1 000 000, Bank – EUR 5 000 000.
- The documents can be submitted in English and amended “on the go” instead of formal writing forth and back.
- Direct access to Single Euro Payments Area (SEPA).
- Deposits up to the amount of EUR 100 000 insured according to EU Deposit Insurance Scheme.
- Remote client verification. Innovative “know your customer” processes for remote verification allows identification of the client without physical presence.
- Direct access to EU/EEA financial markets.
- No sanctions for the first year. The Bank of Lithuania is committed to support start-ups and not to punish them during the first year of operation for minor infringements.
- Start-up visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
ECOVIS experience in bank licensing
Being part of ECOVIS International consulting network present in more than 60 counties around the world ECOVIS ProventusLaw currently considered as the most experienced financial licensing advisor in Lithuania. During the period of last 12 months, ECOVIS licensed in Lithuania more than 10 finance institutions including big names deVere and Instarem setting up their European operations centres in Vilnius. ECOVIS ProventusLaw provides all the necessary services for the bank licensing, including preparation of licensing documentation, representation at the Bank of Lithuania (Regulator) during the licensing procedure, company incorporation, office registration, advice on IT, HR, compliance and other issues rising during the incorporation of banking business in Europe. After the licensing procedure completed, ECOVIS offers accounting, reporting, audit, compliance and legal services for the operational business.
Our Specialised Bank licensing presentation you can download:
More about FinTech companies registration and licensing in Lithuania you can read here.