The evolution of the payments landscape has also led to the evolution of licensing requirements for Financial Institutions (FI) both Banks and Non-Banks (NBFIs), as regulators try to match the requirements of this digital age and do their best not to stifle innovation in the financial services industry.
Fintechs, from companies offering web and mobile-based financial services, to pioneering blockchain & cryptocurrency services, are moving licensing forward as they disrupt decades-old structures, partnerships, and relationships, within the growing ecosystem of financial services & products.
Regulations will be always behind the fast evolution of the payments landscape. Some services & products might not be regulated yet, but regulators face the task every day to determine if a company needs licensing based on the products and services they offer and the regulations that are in place. Certain fintechs might decide to experiment without the proper licensing in place. International financial institutions might decide to offer services in certain jurisdictions without analyzing the potential fines they face if regulators determine that they should be licensed.
We at Mohr World, with our Corporate Partners expert advise and their in-depth understanding of the industry, can lead you into a safe path and provide you with the help you need. We can help you with the Application Submission in many jurisdictions for a fast and successful licensing process.
It has been stated many times that US licensing for FIs is a complex process requiring Federal & State guidance in order to make sure that licensing for the services & products that you plan to offer is:
We at Mohr World can discuss with you the options, costs & benefits of licensing as a Money Transmitter in the US. Even if you plan to offer your services to individual customers across the country, which will require licensing in 49 states plus the District of Columbia, US state regulators have been working together, through their own association, the MTRA, to make the process easier for the industry. Seventeen states have developed a protocol, hereby presented in a video interview from Rick St. Onge, Chairman of the MTRA: https://youtu.be/Ofk-o1cBFnk
This process allows the common submission of most of the documentation needed for those initial 17 states with a few other requirements added by some states. This is a leap forward now that the Federal government has been pushed to come up with a Federal License, something that we don’t think it will be achievable anytime soon.
If you plan to offer Corporate Services, then maybe licensing is not required but most banks are demanding licensing of MSBs, even if only in one state, to protect themselves.
Our Corporate Partners in the US can work together with you to provide the best advice and guidance throughout the process, leveraging the multi-disciplinary approach that we have developed, saving you time and money and achieving the coherence and consistency you need to achieve a successful licensing process.