European Central Bank issues specialist banking license to Lithuanian company UAB SME Digital Financing

After a proposal from Bank of Lithuania, the European Central Bank (ECB) allegedly issued a specialized banking license to the Lithuanian capital company Digital financing of SMEs UAB.

It is now expected that after obtaining such a permit, UAB SME Digital Financing will begin to accept deposits, offer account financing services and business or business loans.

Now, There are five “specialized” banks offering services in Lithuania: AB Mano bankas, Revolut Bank UAB, UAB GF bankas, AB Fjord Bank and European Merchant Bank UAB. Their main activity is to take deposits and issue loans. Another specialized banking platform – Crius LT, UAB – is about to launch operations.

The Bank of Lithuania and the ECB are currently examining six other applications for specialized banking authorization. These types of banks are usually associated or involved in the further development of Fintech services, which aim to increase consumer-oriented competition, the attractiveness of modern financial solutions and a better overall user experience (UX).

These specialized banks were allowed to take deposits, lend money, provide money transfers and various other day-to-day banking services. However, these types of banks cannot offer investment and other similar financial services. The opportunity to launch such banking platforms appeared in 2017. The licensing process for these specialized banks takes about a year.

As reported Last month, the Bank of Lithuania, the country’s central bank, revealed that the number and value of payments made through its platform, CENTROlink, doubled last year, while instant payments were multiplied by around four (compared to previous years).

Bearing these developments in mind, the Bank of Lithuania has decided to change the fees charged for CENTROlink services. The institution plans to take a more rigorous approach when it comes to assessing or evaluating local payment service providers and their management (starting this year).

As covered, Open Banking Fintech Yapily, a London-based startup, will open an office in Vilnius, Lithuania, the company’s third European office. Yapily notes that he is joining a number of UK FinTechs, including Revolut, Curve and Square, which have operations in Lithuania. The company announces that it will hire up to 30 people in Vilnius in the coming months. Yapily confirmed in January 2021 that he was recruiting for compliance, engineering, product and operations roles.

kevin., a fintech startup based in Lithuania, has raised € 1.5 million in seed funding to continue the development of its P2D2 “first of its kind” product for mobile payments. Kevin’s solution. is a PSD2-based open banking API that has been used to directly compete with card networks for mobile payments from pre-linked bank accounts.

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