Why You Should Get an Emi License when Starting a Fintech Company

Thinking about starting a fintech? You have perhaps a great idea for a digital wallet or a cross-border payments application. Or maybe you have an alternative method through which individuals can handle money digitally.

One of the largest choices you will make in the initial stages is whether to apply for an Electronic Money Institution (EMI) license. It may seem like extra red tape. But in actuality, this license can unlock the gates to your business and give you a serious competitive advantage.

Here is why EMI licensing may prove to be one of the most intelligent decisions you will make.

Build trust from day one

Each time individuals make a decision to use a fintech app, they are deciding to entrust their funds to you. And unless you have a license, you will have to lean always on a partner bank or a third party to supply regulated services.

With the help of Legalaes, you can get an EMI license in any jurisdiction. This way, you are demonstrating to the regulatory bodies, partners, and most importantly, your customers that you have been subject to rigorous examinations.

This type of trust is invaluable. It allows you to shine in a sea of competitors and makes users feel secure using your platform than your competitor’s.

Operate with more freedom

An EMI licence provides independence. You can:

• Issue electronic money
• Maintain client funds
• Offer payment services.

You can do all these activities directly, eliminating the need to use someone else's license or banking rails. That is, you are in charge of the customer experience.

Need to introduce something new fast? You do not have to wait to get a partner bank approval. Want to expand your services? There will be more freedom to be creative. Speed and flexibility are frequently the distinguishing factors between market leaders and market followers in fintech.

Attract better partnerships and investments

Certainty is something that investors and strategic partners adore. With an EMI license already, you are demonstrating that your company is:

• Serious
• Compliant
• Ready to scale.

That decreases risk in their eyes and makes you a better investment choice.

Payment networks and banks also take you more seriously. They will not view you as just another startup. You become an established company that they can trust to conduct business with.

Scale easily across borders

Passporting (or its equivalents, following Brexit) is one of the most desirable aspects of an EMI license in the EU or the UK. After securing the license in one jurisdiction, you can easily spread to other markets with much less red tape.

You can expand more quickly and effectively without having to establish a new setup whenever you venture into a new nation. That is a big plus when you have a vision that is global or even pan-European.

Future-proof your business

Lastly, money regulations are tightening even more. If you proceed without a license, there is always the risk of scrambling in the future when new regulations are enacted. By obtaining an EMI license early, you are developing a solid footing for your business.