I am really happy and excited when my network contacts or blog readers or even random FinTech enthusiasts reach out to me and ask their questions. Please keep them coming – this is how I learn about your most common concerns and challenges and can produce better and more relevant content.

Some of the FAQs I get all the time are “How long does it take to get a financial license?” and “What can I do to make it faster?“. Someone even texted me “What can I do to get a license in 3 months?” 🤣

An average payments or e-money license or money services business license takes about 8-12 months to get approved. If you are applying for a banking license in the EU, it will take even longer because the review process includes your local regulator and the ECB (European Central Bank). Just the appointment of the case officer at the ECB may take 2 months. And yes, those numbers are very abstract, it’s impossible to rely on these numbers in reality because things change.

Here are the most common slowdown factors:

• Summer or winter holidays and any internal restructuring or change in management within large organizations or regulatory departments. It’s likely there won’t be any major decisions during such times.
• Lack of resources, continuous fundraising, the appointment of new directors or board members, and other personnel changes within the FinTech organization.
• Multiple licenses at the same time. Many FinTech companies would like to have 20 licenses in all major global regions without realizing that each of the licenses will likely require resource allocation, setting up an office, hiring people, and getting clear about local reporting, accounting, and tax requirements. You need to choose 1-2 (maximum 3 and it’s not optimal, less is always more) licenses in your core markets and focus there.
• Switching gears and changing your business model. It happens sometimes that a startup company initiates a project, and after facing the first obstacle or first partnership rejection decides to change plans and start something else, assuming it would be easier. (E.g. you applied for the license in country XXX and 2 months later you received a list of 150 questions and requests from your regulator, and instead of answering and addressing those questions, you decide to start something new, because you feel it would be easier and faster). Usually, it is never easier and faster elsewhere.

Would be great to hear from you about compliance topics or challenges that occupy your mind. 💭