Banking Licence & Regulatory Experts — UK & EU
Obtaining a banking licence is the most complex regulatory authorisation in financial services. We support challenger banks, neobanks and credit institutions through PRA/FCA dual-regulated authorisation in the UK and specialised bank licensing across the EU.
Speak to an ExpertIn the UK, banks are dual-regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The process includes a mobilisation phase and requires substantial capital and governance infrastructure. Across the EU, Lithuania\u2019s Specialised Bank licence offers the most accessible route for fintech-oriented banking firms.
Licensing Jurisdictions
| Country | Regulator | Min. Capital | Timeline |
|---|---|---|---|
| UK — Credit Institution | PRA + FCA (dual-regulated) | £1M+ (mobilisation) | 12–36 months |
| Lithuania — Specialised | Bank of Lithuania | €1,000,000 | 6–12 months |
| Ireland | Central Bank of Ireland | €5,000,000+ | 12–24 months |
| Malta | Malta Financial Services Authority | €5,000,000+ | 12–18 months |
| Luxembourg | Commission de Surveillance (CSSF) | €8,300,000+ | 12–24 months |
UK — Credit Institution (PRA/FCA)
UK banking authorisation is a dual-regulated process overseen by the PRA and the FCA. Applicants must demonstrate a credible business plan, robust governance framework, adequate capital resources, risk management capabilities and operational resilience. The PRA operates a two-stage process: firms first receive authorisation with restrictions (the mobilisation phase), during which they build out infrastructure, hire key personnel and prepare for launch. The mobilisation phase typically lasts 12 months. Minimum capital during mobilisation is £1 million, with ongoing capital requirements calculated under the Internal Capital Adequacy Assessment Process (ICAAP). We prepare comprehensive application documentation, draft all required policies and frameworks, support board composition and SM&CR mapping, and manage regulator engagement throughout the process.
Lithuania — Specialised Bank
Lithuania’s Specialised Bank licence, issued by the Bank of Lithuania, offers the most accessible EU banking route for fintech-oriented firms. It permits deposit-taking, lending and payment services within defined parameters. Minimum capital is EUR 1,000,000 — significantly lower than traditional EU credit institution requirements. The application process typically takes 6–12 months. A Lithuanian banking licence passports across all EEA member states. We support entity incorporation, licence application preparation, governance design, policy drafting and ongoing compliance with Bank of Lithuania requirements.
Other Services
Compliance Support
SM&CR, ICAAP/ILAAP support, ongoing PRA/FCA compliance.
Financial Crime
AML/CFT, fraud risk and financial crime frameworks for banks.
Compliance Audit
Independent regulatory audit covering PRA/FCA requirements.
Regulatory Reporting
PRA prudential reporting, FCA returns, capital adequacy reporting.
Open Banking
AIS, PIS and RAISP authorisation within banking licence scope.
Variation of Permission
Adding or amending regulated activities post-authorisation.
Frequently Asked Questions
A bank (credit institution) can accept deposits, make loans and offer a full range of financial services. An EMI can issue e-money and provide payment services but cannot accept deposits or make loans.
The PRA operates a mobilisation phase where firms receive authorisation with restrictions, allowing them to build out operations before going live. This typically lasts 12 months.
The PRA requires a minimum of £1 million during mobilisation, with additional capital requirements based on the business model and risk profile.
A banking licence issued by the Bank of Lithuania for firms offering limited banking services. Requires €1 million capital and typically takes 6–12 months. It passports across the EU.
The Senior Managers and Certification Regime requires banks to clearly allocate regulatory responsibilities to senior individuals and certify the fitness and propriety of key staff.
‘Their deep understanding of PRA and FCA requirements gave us confidence throughout our banking authorisation process. The quality of documentation they produced was outstanding.’
— Chief Financial Officer, UK Challenger Bank
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Speak to Our Team
Get in touch to discuss how we can support your regulatory and compliance needs.
info@regulatorycounsel.co.uk | 2 Frederick Street, London WC1X 0ND