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News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

Finma grants fintech license to Relio

Source: Relio

Relio receives a fintech license from the Swiss Financial Market Supervisory Authority (FINMA).

With the license, the startup plans to launch a digital business account for SMEs. With a specially developed compliance technology, the offering is aimed primarily at demanding corporate customers.

Independent thanks to its own FINMA license
After an extensive authorisation process, Relio obtains a fintech license from FINMA. With the license, the startup plans to launch a digital account for companies soon. The offering is particularly interesting for corporate clients with complex business models and international flows of funds. In this market segment, compliance and anti-money laundering requirements cause high expenses on both the bank and customer side. Relio solves this problem by automating many compliance tasks. "Thanks to our license, we work independently of partner banks and their outdated structures, processes and technologies. This is the only way we can drive the digitalization of compliance and save our customers a great deal of bureaucracy," says Lav Odorovic, CEO of Relio, about the advantages of having its own fintech license.

Fintech license as innovation booster
While fintech startups spread around the world, there was hardly any new impetus in the Swiss financial center for a long time. The regulatory and financial barriers to entry were too high for new players to gain a foothold in Switzerland. To promote innovative financial companies, the legislature therefore created the fintech license in 2019. Compared to a full banking license, the licensing procedures are simplified and the capital requirements are lower. Public deposits are limited to up to one hundred million Swiss francs for each fintech. The funds may also not be invested or earn interest. Instead, they are deposited with the Swiss National Bank so that they can be paid out to clients again if a fintech company runs into financial difficulties. Thus, the new fintech authorization opens up a lot of potential for innovation without exposing customers to high risk.

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