RegTech

RegTech: Bank of Lithuania Introduces Remote FinTech Licensing

 

Bank of Lithuania, the country’ regulator – has introduced a procedure which will allow companies to apply remotely for Fintech licences. This regulatory technology (Regtech) tool will facilitate the process of submitting and managing applications for e-money and payment institution licences. By introducing this one-click solution, Bank of Lithuania – already the regulatory body able to issue licences in record times – will become even more approachable for Fintech innovators across the world.

As of July 2, companies looking to access the 512-million strong EU market will be able to apply directly online for a variety of financial licences valid across the SEPA area. These include e-money institution (EMI) and payments institution (PI) licences.

This means that they will not only benefit from having one of the most supportive and Fintech friendly regulators, but they will also now have the convenience of being able to set up their business from wherever they are. What’s more, it is the intention of the Bank of Lithuania to make this e-licensing solution the fastest in the EU – outdoing its own personal record of being the fastest country in the EU to issue PI and EMI licences. With all necessary documents submitted, it takes only 3 months to obtain such licences, while in other EU countries the process may take more than 12 months.

The impetus behind this incentive is not only practical, it is also heavily motivated by the desire to position Lithuania as a hub which welcomes Fintech from all corners of the globe so that it can build a community that is truly borderless.

In just two years, the country’s regulator – the Bank of Lithuania – has established the fastest setup times for fintechs in the EU and a pioneering regulatory environment that fosters innovation. As a result, Lithuania’s Fintech ecosystem is now over 120 strong, and is growing every month. With the advent of this new incentive, this trend is set to continue.