Prestigious bank 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, Banks considered as Credit Institutions. Only the Banks (Credit Institutions) have exclusive right to accept deposits and other repayable funds from non-professional market participants and provide full scale banking services. Lithuanian licensed Bank is able to offer all banking services in single European financial market of 30 countries for 500 million wealthy consumers and 20 million businesses.
From 1 of January, 2017 EU member state Lithuania introduced a new type of banking license – Specialised Bank, which is unique finance institution in European Union (EU) and European Economic Area (EEA) jurisdiction.
Meanwhile, as UK and London suffering from Brexit, discussions on Swiss “light” banking license is in incubation stage, Lithuania offers pan-European banking license ready to start banking services in single European market within 6 months. Having minimum equity capital of EUR 1 million and licensing time of 6 months Lithuanian Specialised Bank has no equivalents within the rest of European 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/.
Lithuanian licensed full service Bank with equity capital of EUR 5 million allows to provide full scale banking services in all European jurisdictions without any restrictions.
Lithuanian licensed 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 centers. Favorable regulatory and tax environment, excellent infrastructure, fastest internet, cheap office space and quality pool of relatively cheap employees makes Vilnius attractive for large international banking institutions and for Fintech startups.
UK giant Barclays Bank operates Barclays Technologies Centre Lithuania in Vilnius from 2009, offering services to Barclays businesses across the world. Scandinavian rivals SEB, Swedbak, Danske Bank as well as finance industry leader Western Union, world’s biggest stock exchange operator NASDAQ have service centers in Vilnius too.
Traditional prestigious jurisdictions are losing their importance in our days. Offshore jurisdictions are no longer considered attractive because of automatic tax information exchange, accounts opening restrictions and limited access to single European market.
Operational costs became vital in today’s banking business. New Fintech companies challenging traditional banking business and cutting margins. Traditional banking institutions and Fintech startups are searching for jurisdictions opening large markets at low cost.
Lithuanian “light” banking license of a Specialised Bank is exactly what they need. It opens all single EU/EEA banking market, including large national French and German markets at significantly lower cost. A class office rent and employment costs are twice or even more cheaper in Vilnius comparing to traditional jurisdictions.
Possibility to outsource relatively cheap and quality services from the local service providers gives strong competitive advantage and creates safe, efficient and cost effective banking institution ready to face intense competition in EU/EEA banking market.
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 EUR 1 000 000, comparing with EUR 5 000 000 for ordinary bank.
– 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 ensured according to EU regulations.
– Remote client verification. Innovative “know your customer” processes for remote client verification allows open the accounts without physical presence of the client.
– 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.
– Startup visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
That is why industry leader WireCard Bank AG recommends Lithuania and ECOVIS ProventusLaw as a gateway to European financial markets.
From our perspective, they fully handle all aspects of financial or corporate matters with a highly professional dedicated team. Their knowledge of the financial services industry within their local market is supporting us in our efforts across Europe. I would not hesitate in recommending ECOVIS ProventusLaw as a strong and reliable law firm for any dealings with the regulatory body in Lithuania and as a gate for the international financial services companies to Europe. Mr. Oliver Bellenhaus, Wirecard Bank AG
ECOVIS International is a leading global consulting firm having over 4,500 professionals operating in over 65 countries. ECOVIS ProventusLaw is Lithuanian member firm of ECOVIS International. ECOVIS ProventusLaw has long experience consulting international clients and licensing finance institutions. Our experience starts from the incorporation of first modern NSEL 30 Index fund in Lithuania and fund’s management company 15 year ago. Recently we licensed European branch of California based e-payment company Alternative Payments, servicing over 100 000 websites around the world, global financial giant deVere Group getting e-money license in Lithuania, advised national post operator AB Lietuvos Pastas and leading mobile telecommunications service provider UAB Omnitel getting their payment institution licenses. Currently we service Fintech companies from European countries, US, Canada, China, Hong Kong, Israel, UAE, Singapore, Philippines, seeking license for European market.
More about FinTech licensing – www.ecovis.lt/fintech
More about ECOVIS experience – http://ecovis.lt/fintech/why-lithuania/
Specialised Bank licensing presentation: