The European Union is witnessing an explosion of multinational Fintech companies wishing to market 512 million customers and 23 million small and medium-sized enterprises.
In the UK, immigrants from outside the EU have historically found a place, but many prefer to settle in Europe. Brexit is here already. The key explanation for this is the fact that the European Central Bank needs to acquire and retain a permit. However, it may take some patience to obtain this license.
Being a few months ahead of the competition in a highly competitive financial technology industry means you are winning already. So the reason is – why wait longer than anyone else? Well, this Lithuania is happy to inform you that it's just not necessary to wait that long!
This country is already making waves as the chosen gateway into the EU market, which Business Insider has already called a "contender to become the next fintech hub in Europe." The light-speed licensing process takes just around 3 months for PI and EMI licenses is one of the key reasons for this. In contrast, the same treatment will eat up to a year in most other EU countries.
Fintech companies need a license provided by any Member State in order to operate in the EU. So, in France and vice versa, a license granted in Germany is valid.
Why Lithuania once again? Time is the most precious currency on the market and the Bank of Lithuania is able to grant these permits 2-3 times more quickly than other jurisdictions. The reasons for this are multiform: the strong desire to diversify the market with a "single window" strategy.
Things to know about getting a FinTech license in Lithuania
In Lithuania, there are three types of FinTech financial institutions that can be licensed: a specialized bank license, an E-money institution, and a payment institution. It's important to know how different they are and what is right for you.
Three types of financial institutions
All three financial institutions licensed in Lithuania – a specialized bank, electronic money institution (“EMI”), and authorized payment institution (“API”) are entitled to provide different kinds of payment services. Any of the Lithuanian Fintech lawyers may provide you with more comprehensive details on the differences, but the list of services also includes:
the services that make it possible to put the cash into a payment account and all transactions necessary to run a payment account;
services that allow cash withdrawals from a payment account, as well as all the transactions needed to operate a payment account;
the execution of payment transactions, including transfers of funds to a payment account with the payment service provider of the customer or another payment service provider, including the execution of direct debits, including one-off direct debits; the execution of payment transactions by means of a payment card or similar device; the execution of credit transfers, including standing orders;
execution, with the assistance of the Fintech lawyers of Lithuania, of payment transactions where the funds are secured by a credit line for a payment service user: direct debit execution, including single-off direct debits; execution by payment card of payment or related device of payment transactions; execution of credit transfers, including standing commands;
issuance and/or acquisition of payment instruments;
money remittance;
payment initiation services;
account information services.
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