Securing Your Swiss LightBank-FinTech License: Ovalor’s offer a comprehensive turnkey application program for your Swiss Finma LightBank-Fintech application. Our services encompass the complete preparation and submission of your application, including all necessary supporting documents.
We provide step-by-step guidance to ensure a successful application process, managing every detail from start to finish. Do not hesitate to contact us at connect@swissfintechpro.com for more information on this matter
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| Feature | Swiss FinTech License |
| Status | Light/Restricted Bank License |
| Regulatory Path to Bank License | Natural progression towards a full banking license as deposits reach CHF 100 million The crypto assets are not calculated into the 100 millions limit to the contrary crypto-based assets of unlimited value can be held. |
| Strategic Growth Implications | The Swiss FinTech license is a crucial step towards obtaining full banking capabilities. It acts as the foundational structure for a bank license application, simplifying the process by building on existing groundwork. Additionally, the license enables firms to operate continuously while applying for a bank license, allowing them to maintain uninterrupted client services and business continuity as they enhance their capabilities.
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| Main Activities | Acceptance of Public Deposits up to 100 mln CHF without interest or investments. |
| Additional Services | Payment accounts, cards, e-wallets, crypto-related services |
| Currency Types | Fiat and cryptocurrencies |
| AML Regulations | Subject to the Anti-Money Laundering Act (AMLA); stringent enforcement |
| Safeguarding Requirements | Must segregate customer deposits from company funds Customer Public Deposit must be kept in Switzerland and segregated from own funds of the company. A separation per client, however, will not be required by law. The funds must be liquid at any time, and no investment or payment of interest will be permitted. |
| Capital Requirements | Initial capital of at least 3% of public deposits, minimum 300,000 CHF |
| Interest on Deposits | No interest allowed on customer funds |
| Investment of Funds | No investment of customer funds allowed |
| Supported Business Models | Description |
| Trading Platforms for Virtual Currencies | Providing accounts and wallets to their clients. |
| Electronic Money Businesses | Managing and operating electronic money systems. |
| Account Opening and Issuing IBANs | Offering banking services including account opening and issuing International Bank Account Numbers (IBANs). |
| Debit Card Businesses | Issuing and managing debit card operations. |
| Additional Business Models (and more) | Supports various other financial services as applicable |
Requirements for Obtaining the LightBank-Fintech License
Here’s a table summarizing the requirements to obtain the LightBank-Fintech License:
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| Requirement Number | Requirement Description |
| 1 | A minimum fully paid-up capital of CHF 300,000. |
| 2 | A business plan demonstrating ongoing compliance with capital adequacy, risk diversification, and liquidity rules. |
| 3 | Qualified individuals guaranteeing proper business conduct. |
| 4 | Articles of association or partnership agreement clearly describing the business activities. |
| 5 | Management operations based in Switzerland. |
| 6 | A clear distinction between strategic and executive management. |
| 7 | Comprehensive risk management for various types of risks. |
| 8 | An effective internal control system and an independent internal audit function. |
| 9 | Lighter Accounting Requirement than Bank: Accounting and audit standards, the general standards of the Swiss Code of Obligations will apply to it. The standards of the Bank act will not be applicable: |
| Capital Requirement | Details |
| Initial Capital | Minimum CHF 300,000 for deposits up to CHF 10 million. |
| Subsequent Capital | An additional 3% of public deposits up to CHF 100 million. |
| Conditions for Capital | The capital must be fully paid, always maintained, not borrowed, and only used for company purposes. |
The application process for a LightBank-Fintech license typically takes 8 to 10 months. It is similar to the bank licensing process but less complex.
Banking Facilities:
FinTech licenses enabling significant Swiss franc payment transactions may access the SIC system and sight deposit accounts at the Swiss National Bank.
Scope of Work, Professional Fees and Costs to Apply for a LightBank-Fintech License
| Scope of Work | Details | Professional Fees (CHF) |
| Company Incorporation | Establishment of the legal entity, including notary and registration services. | 8,000 |
| License Process Inclusive of All Deliverables | 165,000 | |
| Application Draft Preparation | Crafting the initial draft of the application. | Included in License Process |
| Consultation with FINMA | Preliminary review of the draft application with FINMA. | Included in License Process |
| Application Finalization and Submission | Completing and formally filing the application with FINMA. | Included in License Process |
| Internal Policies Manual Development | Creation of a comprehensive internal policies manual. | Included in License Process |
| Anti-Money Laundering (AML) Manual Creation | Development of an AML manual. | Included in License Process |
| Risk Management Manual Production | Assembly of a risk management manual. | Included in License Process |
| Business Plan Development | Preparation of a three-year business plan with profit and loss statements. | Included in License Process |
| Pre-Application Meeting with FINMA | Discussion with FINMA prior to application submission. | Included in License Process |
| Post-Application Follow-Up with FINMA | Ongoing communication with FINMA post-submission until decision. | Included in License Process |
| Additional Costs | ||
| Swiss Resident Director | 15,000 per year | |
| Virtual Office for Application | 6,000 per year | |
| Payment Terms | ||
| Initial Deposit | Comprising CHF 50,000 + Costs CHF 21,000 | 71,000 |
| Monthly Instalments | Six payments, each due 30 days after the initial deposit | 20,500 |
| Government Fees | Payable directly to FINMA as required | 15,000 to 25,000 |
Below a table that lists the specific document requirements for individuals and corporations when applying for the authorization to open a new LightBank-Fintech, focusing on people responsible for administering and managing the company and holders of qualified participations (10%):
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| Document Type | Individual Requirements | Corporate Requirements |
| Nationality and Domicile | Information on nationality and domicile. | Not applicable. |
| Qualified Holdings | Details on qualified holdings in other entities. | Not applicable. |
| Judicial and Administrative Proceedings | Information on pending or past judicial and administrative proceedings. | Information on any judicial and administrative proceedings, whether pending or completed. |
| Curriculum Vitae | A CV signed by the individual. | Not applicable. |
| References | Professional references. | Not applicable. |
| Criminal Record | An extract from the criminal record. | Not applicable. |
| Statutes | Not applicable. | The corporate statutes. |
| Commercial Register | Not applicable. | An extract from the commercial register or similar certification. |
| Activity Description | Not applicable. | A description of the company’s activities, financial situation, and group structure. |
| Shareholder Declarations | Not applicable. | Declarations from shareholders holding qualifying shareholdings: details on participation and rights granted. |
The table below illustrates the core requirements for directors. Shareholders do not need specific qualifications. Swiss Light Bank directors require a broader understanding of traditional banking in addition to new financial technologies
| Criteria | Swiss Light Bank License |
| Professional Experience | Extensive experience in banking or financial services, particularly in relevant areas of operation. |
| Regulatory Knowledge | Deep understanding of Swiss banking and financial regulations. |
| Management Skills | Proven management and leadership capabilities. |
| Reputation and Past Conduct | Must have a clean criminal record and a history free of financial mismanagement. |
| Educational Background | Typically requires a higher education degree in finance, business administration, or law. |
| Risk Management | Experience in managing financial and operational risks specific to banking activities. |
| Financial Acumen | Strong financial management skills, including understanding capital adequacy and liquidity management. |
Experience requirements above do not apply to shareholders.
The table below summarizes the regulatory expectations and requirements for shareholders in financial institutions, highlighting the need for transparency and integrity in their involvement.
| Requirement | Description |
| Fit and Proper Test | Regulators assess the integrity and suitability of significant shareholders (10% or more) to ensure they do not pose a risk to the sound management of the institution. |
| Source of Funds | Significant shareholders must disclose the source of their funds to prevent money laundering and confirm the legitimacy of the capital. |
| Disclosure Requirements | Shareholders with significant stakes must disclose their holdings and any changes therein to regulatory authorities for transparency and monitoring purposes. |
| No Criminal Background | Significant shareholders should not have a history of criminal activity, especially financial crimes, to maintain the institution’s integrity and trustworthiness. |
At Ovalor, we specialize in transforming your business concepts into operational realities.
Our services are designed to streamline the activation process, ensuring a smooth transition from foundational planning to full-scale operation.
We possess deep knowledge of the Swiss financial legal framework and maintain strong working relationships with FINMA, the local banking regulator.
Our team in Switzerland boasts a diverse array of professionals, including lawyers with 30 years of experience, bankers with 11 years as CFO and CRO of a Swiss bank, and bank auditors with 9 years of experience as senior bank auditors. Choose Ovalor—we are the experts you want to work with. Do not hesitate to contact us for more information with regard to this matter at connect@swissfintechpro.com
