What is a banking license?
A banking license certifies that a bank has met all the legal requirements when it comes to protecting its customers’ money and data. It’s a clear signal that you can feel safe and secure in the institution you’ve chosen. Read on to find out everything you need to know about banking licenses.

What does fintech mean?
“Fintech” stands for financial technology, and is a label applied to companies offering banking services through specialized software. The goal of fintech companies is to improve the delivery and quality of banking services—making money management simpler and quicker for the consumer. Fintech start-ups are disrupting the traditional banking sector. By offering banking services online instead of in branches, they give customers the power to handle their finances directly from their smartphones.FAQ
Fintech refers to financial technology typically offered by financial services companies. Types of fintech include payment systems such as TransferWise, as well as mobile banking apps such as the N26 app. These systems are built using specialized software, usually with secure protocols to protect any money managed in the system.
A banking license certifies that a financial organization is running a secure banking business. Licensed banks must provide a full range of banking services while managing their customers deposits themselves. N26 has been a fully licensed bank since 2016.
Banking licenses allow services such as managing deposits in personal and business accounts, issuing debit and credit cards, and processing foreign exchange services. It officially certifies that the license holder is a recognized bank, and provides protection to their customers deposits up to €100,000.
An e-money licence is like a standard banking license, but with a set limit of transactions and banking services. These can include money transfers, currency exchange, the issuing of payment cards, and using digital e-wallets. E-money firms do not protect your deposits under the European Deposit Guarantee Scheme, nor do they allow services like lending and overdraft.
If a company wants to set up a banking license, they need to contact their national financial authorities. They must meet the requirements set by the authority, and have a business proposal to present. If deemed credible, the organization advises the firm on next steps. This process takes up to 18 months.