E-money institution vs. full bank


Initial situation and project goal

A European provider of online payments solutions was faced with the challenge of a constantly growing volume of e-money. The project’s aim was to evaluate the potential earnings increase through the acquiring of a full banking licence. The project took place in cooperation with a leading international corporate law firm and an auditing company.


Project steps

The most important milestones in the project included:

  • Evaluation of the requirements, opportunities and chances related to membership in the German Deposit Protection Fund (Einlagensicherungsfond)
  • Analysis of the regulatory requirements that are caused by forming or taking over a bank, taking into account the consolidation regulations and the effects on equity capital
  • Investigation of possibilities for using the volume of e-money as a refinancing resource for credit products
  • Analysis of additional refinancing resources within the framework of a full banking licence
  • Business case: estimating the additional proceeds that could be generated as well as additional costs, capital requirements and liquidity requirements (various scenarios)


Project results and outlook

  • Acquiring a bank licence can serve to hone the strategic profile, increase the profit volume and benefit the customer
  • Membership in a Deposit Protection Fund is an important quality indicator for the market and for customers
  • Both the European regulatory framework and the established banking industry are awaiting further significant changes
  • In the future, e-money institutions being converted into full banks will be of increasing importance