The establishment of a bank and setting up your own financial services business if well executed can prove a profitable venture. It is a huge step and involves a number of stages that must be taken before it can be officially established.
Establishing a bank explained
In order to establish a bank, you must first decide upon the jurisdiction in which you would like to set up your institution. Once a decision has been reached, you must then begin with the licensing procedure from the jurisdiction of your choice. This procedure is extremely rigorous and will require a large amount of documentation, funds and testing. All documentation and credentials provided must also comply with your chosen jurisdiction’s licensing requirements.
You must ensure that the plans and configurations of your business are correctly structured in a thorough and well thought out manner. As part of the registration and licensing procedure, your chosen jurisdiction will assess your application and will also assess your suitability for running a bank. This assessment involves various methodical checks on the applicant’s information. This is a very important part of the registration and bank licensing process and will determine whether or not you will gain authorization.
Once the assessment has been approved a license must be acquired. Upon acquiring a license, you must then obtain the necessary hardware and software needed to operate. From here, you can establish a clientele and find correspondent bank relations.