The Bank of Lithuania has launched a new RegTech tool to enable companies to apply for FinTech licences remotely.
The e-licensing tool will facilitate the process of submitting and managing applications for e-money and payment institution licences. Through the one-click solution, the bank wants to become even more approachable for FinTech innovators the world.
Companies looking to access the EU market will now be able to apply directly online for a variety of financial licences valid across the SEPA area including e-money institution (EMI) and payments institution (PI) licences.
Its intention is to make this e-licensing solution the fastest in the EU – outdoing its own personal record of being the fastest country in the EU to issue PI and EMI licences. With all necessary documents submitted, it takes only three months to obtain such licences, while in other EU countries the process may take more than 12 months.
“Aiming to create an innovation-friendly, attractive and competitive environment for financial sector regulation, we were among the first in the EU to introduce a RegTech system for submitting applications for operating licences. We hope that it will further accelerate the authorisation process and ease the administrative burden for potential financial market participants,” said Vytautas Valvonis, Director of the Supervision Service at the Bank of Lithuania
Once the specific type of licence is chosen, the new system automatically generates a list of necessary documents as well as explanations on how and what information should be disclosed.
Using internet banking or other login methods supported by E-Government Gateway, foreign businesses can set up in Lithuania remotely as all paperwork is done entirely online.
The new tool has been created in line with the latest amendments to the rules for issuing licences to electronic money and payment institutions as well as branches of foreign electronic money institutions.
Since the beginning of 2017, FinTech firms have already been issued nearly 50 licences from the regulator, with another 30 currently under examination.
Earlier this year, BearingPoint’s RegTech platform, Abacus was chosen by Citadele Bank Lithuania to meet reporting requirements. The bank selected Abacus360 Banking to meet the European Central Bank’s (ECB) growing requirements on AnaCredit (analytical credit datasets) reporting.
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