What type of banking license is suitable

Individuals and companies that wish to engage in financial activity are required to obtain the necessary banking license. The type of banking license you obtain is dependent on the bank specialization and the services that the bank will offer to individuals.

Choosing a suitable banking license

Banks and other institutions that wish to offer individuals and companies financial services are required to obtain the necessary banking license. These licenses are issued by the regulatory body of their chosen jurisdiction and often entail investors to fulfill set criteria in order to qualify for a banking license.

There are many different bank specializations, some of which are listed below:

  • Deposit taking and lending
  • Debit and credit card issuing
  • Payment processing services
  • Cash management services
  • Issuing financial guarantees
  • Wire transfer services
  • Investment banking
  • Trade finances

Any bank or financial institution can specialize in the above services given that they have a banking license from their chosen jurisdiction. There are two main types of licenses; class A unrestricted banking license and class B restricted banking license. In order to obtain the license, investors are required to file necessary documents and the completed official application to the regulatory body.

The process of obtaining a banking license can often be complex and time consuming therefore it is advised to seek the assistance of a professional consultancy firm. Through the advice and guidance of experienced consultants, investors are able to ensure that they complete the process in a professional manner as well as in compliance with the jurisdictional regulations. Moreover, expert consultants can offer you insightful advice in the field of forming a bank and engaging in financial activity.