Bank Formation as a Strategic Decision for Company Success
-Professionalization of Financial Services-
In order to offer financial services today, companies usually require a banking license and are therefore subject to the supervision of the BaFin. However, there are financial services which can be exempted from the supervision and are therefore not bound to license requirements. These businesses named “Financing Without a Bank” are often ancillary or secondary businesses, which can be offered as a complement to the core business. A possible release of the license requirements depends on the business volume of the respective company.
Generally an increasing intention of non-banks to establish a bank can be observed. This is due to the fact that regulatory requirements are continually intensified and therefore less financial services can be found in the area of a possible release.
However, it should not create the impression that it is easy to implement “Financing Without a Bank”. For this purpose certain core processes should be set up and a suitable risk management should be established in any case.
With regard to risk management it is especially advisable to acquire a banking license because then companies must meet the minimum requirements for risk management (MaRisk). Consequently, they should be able to better assess and control risks.
Additionally, a banking license ensures professionalism in different areas and provides legal security for the conduct of the banking business. Hence, a greater security and loyalty can be gained with regard to the customers.