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Digital Banks
Launching a digital bank requires navigating complex deposit-taking laws. We help neo-banks secure the right licensing classifications or structure bank-backed integrations.
Regulatory Challenges
- Extremely high capital requirements for deposit-taking licenses
- Strict liquidity and reserve ratio compliance rules
- Evolving neo-banking regulatory frameworks
- Comprehensive deposit-insurance integrations
How TechLaw Africa Helps
- ✓Assessing microfinance, digital bank, or commercial bank licensing paths
- ✓Designing robust credit risk and asset-liability management policies
- ✓Securing deposit-insurance scheme registrations
- ✓Structuring commercial banking and core-infrastructure partner agreements
Q&A
Frequently Asked Questions
Q: Can we operate a digital bank on a payment service provider license?
No, a PSP license strictly forbids taking deposits for lending or interest-bearing purposes. To operate a digital bank, you must secure a digital bank, microfinance bank, or commercial bank license, or partner with a licensed custodian bank.
Launch Your Platform Compliantly
Get a tailored analysis of the licensing requirements and timelines for your launch markets.