UAB SME Digital Financing granted a specialised bank licence
Following the assessment and proposal of the Bank of Lithuania, the European Central Bank (ECB) granted the Lithuanian capital company UAB SME Digital Financing a specialised bank licence.
Having secured the licence, UAB SME Digital Financing is expected to accept deposits, provide account financing (factoring) services and grant business loans.
Currently, there are five specialised banks carrying out their activities in Lithuania: AB Mano bankas, Revolut Bank UAB, UAB GF bankas, AB Fjord Bank and European Merchant Bank UAB. They focus on acceptance of deposits and provision of loans. One more specialised bank, Crius LT, UAB, is preparing to start its activities as well.
Together with the ECB, the Bank of Lithuania is currently assessing six more applications for a specialised bank licence. Contributing to further fintech development, specialised banks help boost competition as well as attractiveness and accessibility of banking services. They have the right to accept deposits, grant loans and provide funds transfer and other usual banking services, however, specialised banks cannot provide investment and other similar financial services. The opportunity to establish such banks was introduced in 2017. The authorisation process usually lasts for roughly a year.