Why do I need a banking license

Individuals and companies that wish to engage in banking or financial activity are required to obtain a banking license from their chosen jurisdiction. A banking license enables the holder to specialize in a specific area of banking, ranging from private banking to retail banking; therefore it is imperative that you acquire the license before you conduct any finance related activity.

The scope of a banking license

Individuals and companies that want to successfully establish an offshore bank are required to file for the banking license from the jurisdiction’s regulatory body. The first step in obtaining a banking license is often complex and lengthy as there are numerous prerequisites and requirements that need to be satisfied. It is adviseable to enlist the services of a professional consultancy firm when obtaining a banking license to ensure that you administer the documents and complete the banking license application in a professional and timely manner.

The primary reason for obtaining a banking license is to lawfully offer financial services to your clients, being a fully regulated and licensed financial institution. Regulated  and licensed banks can offer a number of services to their customers, some of which include the following:

  • Taking deposits
  • Transferring funds
  • Offering mortgages
  • Issuing cards
  • Loans applications

It is imperative that investors acquire a license that specifically reflects the services of their financial institution. Having a banking license entitles the holder to engage in activities that are connected to banking, thus offering their clients the best service possible.

The procedure of obtaining a banking license is largely dependent upon the jurisdiction it is issued from as each financial regulator has different requirements that need to be fulfilled. Through the advice and guidance of experienced consultants, you are able to ensure that you meet the relevant criteria and acquire the license in compliance with the jurisdictional regulations.