Purchasing a bank offers various advantages over starting a new bank. It’s a much easier process. However, if you have time available and your business plan does not require immediate growth, perhaps moving forward with a banking license application makes more sense.

As explained earlier, the financial regulator will not want to add more banks into its domestic banking system. New banks run the risk of becoming potential problems in their sectors, and each new bank application has the potential for failure.

As discussed earlier, the political aspects play an important role in licensing. In some cases, when you purchase a bank, you are potentially lowering the risk of default for that particular entity. This will, in turn, potentially represent one fewer problem that the regulator has to deal with. Thus, the authorities like it when someone buys a bank instead of licensing a new one.

Smaller considerations should also be made. For instance, hiring or setting up an office is something the prospective buyer must do when licensing a new bank. It’s a process that involves a lot of time, as very often a Financial Licensing Advisors specialist will need to travel to that jurisdiction solely for that purposes. Those expenses will quickly add up and affect the general licensing budget—and, most importantly, drain valuable time. When you buy a bank, you buy the company as is, with the infrastructure and all the related services it has. Instead of deploying a human resources manager to select employees or shop for office space, the office needed to start the business is already there with its own employees, whom the regulator approved.

Furthermore, buying a bank offers all sorts of benefits such as software and other add-ons that will otherwise cost you if you decide to license yours from the ground up. Buying a bank, although more expensive, is a much better alternative. You will likely want to review our comprehensive list of banks and other licensed financial institutions available for sale. Financial Licensing Advisors does not sell bank-type vehicles but, rather, fully licensed and supervised banks.

Moreover, the banks we sell typically undergo a general due diligence check. All institutions listed are subject to change at any time, including any shares available to the public. Banks available on this list have preexisting agreements between themselves and Financial Licensing Advisors. We typically try to perform due diligence on both the entities and their owners to ensure the accuracy and truthfulness of the information that these banks provide.