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There are a variety of Reasons which are specific to their industry Financial Entrepreneurs continuously explore in their mind setting up a Banking Business.

Banking is highly profitable but also a very specialized business that reflects the complexities of the financial sector.

Becoming a bank is not easy, heavy regulatory provisions exist worldwide for banks to operate within becuase they are in fact a very delicate and critical component of the Economy.

Because Financial Licensing Advisors is the undisputed leader in Banking Licensing Services worldwide we often receive enquiries from prospective bankers that want to know the basics of becoming a banking business. Some of them are initially not qualified to act within the financial industry thus we have decided to publish this comprehensive article in which we will try to dispense our expertise and experience in regards of how to start a Banking Business.

“Financial Licensing Advisor is the international Leader in Bank Licensing Services, we have been Creating, Designing and Pre operating financial structures for years, we are the world’s only leader that will solve all your Financial Licensing Needs”

Before moving on, please see the Available Options and solutions available for you to become a Bank, if you would like to understand the basics please continue reading below.


License a Bank
How to Start a Bank
Requirements to Start a Bank
Become a Bank
How to Start an Offshore Bank
How to Start a Private Bank
How to Start an Online Bank
How to Start a Bank Business
Other Licensing Services

The number one reason is Returns, if within all industries you were able to find the best passive income type business, banking is likely to be at the top.

Banks are the pinnacle of the financial system and their advantageous position provides them with very relevant and unique opportunities to produce capital.

Starting a bank is certainly not for everyone, is one of the most complex structures there is and it requires extensive attention to detail, being the world leader in Financial Licensing Services we usually devote countless hours to various specific details that are key for a bank to succeed.

Becoming a Bank will allow your business to grow in many ways and is without a doubt a very complex and expensive process, the largest companies in major industries that are not related to finance choose to become a Bank for a variety of reasons that in the end is a process that requires capital, time and allot of understanding on the underlying tasks.

To pursue this route It must make sense to be thinking on the benefits of banking for your business, because of its complexities you need to have extensive financial background, not only by working with banks but by being active in the industry and by having a former banking education.

Make no mistake, banking is not specifically oriented to the financial sector, we routinely deal with clients within all industries including Retail, Construction, Real Estate, Aeronautic, Marine and Export/Import Industries among others. Do remember that whomever acts as a bank has to know what he is doing, Finance is as serious topic.


To be a banker you should consider a career in Finance, Economy, Accountancy, Insurance, Stock broking, Trust Funds Law or similar professions

The financial services industry is composed by very Energetic and Ambitious people who are always looking for the best opportunities. You should examine yourself to see if internally you have the Drive to do it. Finance is not for everyone is complex and requires attention, everyone in the industry often says it has a degree of stress.

Among the primary benefits of seeking a Financial Related career is the Compensation side of things, the Banking Industry is noted for highly compensation structures that are, overall, much more generous than in other sectors of the economy. Anything related with banking will often be best rewarded in the Banking Industry than elsewhere. Furthermore better benefits will be available for you if you stay in a bank for a longer period of time.

Compared to other industries, the Banking Industry tends to place less weight on seniority at least within a non primary directive role in judging the readiness of their executives for a promotion. Highly driven individuals that are clearly performing within the bank will move ahead on the structure regardless of age, making this industry particularly attractive for ambitious young people.


Banks come in all Shapes and Sizes and attack specific niches based on their local market and their initial business plan. To understand what you need you first would require a deep understanding of why becoming a bank business is a sensible step on your Plans.

Clients that come to us with a very structured and clear view of what they need in terms of licensing or banking often find themselves without clear long term planning of their business, it is important for prospective bankers to understand what the market needs and how can they provide a solution that will benefit the market and that could not be provided by the players that are currently within the system.

A regular case we find is Crypto Currency ICO issuers, most of them have a solid strategy to penetrate the market but lack the financial knowledge to implement such strategies.

Because of the inherent complexities of licensing Financial Institutions Crypto Currency Players often find themselves in need to hire a specialist that could help them understand the complexities of the interaction between various regulatory frameworks in a market as new as the Crypto World.

Understanding such complexities plays an important role on how a banking structure should be made, considerations on location of the assets are often overseen and Crypto Business are usually an international type asset where an international component is involved as part of the equation, attention to international regulation should be given in such cases.

Most of the time and depending on the target market, what these Crypto clients really need is to be licensed offshore seeking specific provisions that will then allow them to be register locally as Financial Service Providers in compliance with domestic applicable regulation. Of course each business case is different and a consultation should be provided for each case, review on each individual client goals and applicable limitations as per specific regulation is key.

Having an advisor that could help any of these clients understand and embrace the complexities of both the regulatory environment and the limitations domestically and internationally is part of the equation, without it, those companies will not be able to grow and any mistake made regulatory wise or from an operational standpoint could cost extensively.

If you are planning in starting a bank business locally you need a local bank license but if you are more globally oriented then it makes sense to have an International or even an Offshore Bank.

If you need more information on these services perhaps you may want to review any of the following options.

How to Start an Offshore Bank
How to Start a Private Bank
How to Start an Online Bank

Capital, Capital, Capital.

To be in the banking business you need capital, allot of it.

Capital is the main item to consider, with it you can hire the right staff and plan accordingly, without it you cannot consider any licensing options. Getting the right people on board is key, in finance your people are truly an integral component of your business.

This industry is so complex and highly specialized that often finding the right advisors is just part of the adventure, you will need internal and external consultants to help you with the activities of setting up and complying with applicable regulation. Our advice is always seek local knowledge and then hire a specialist to look at things.

Again Capital is key, If you have capital you have the possibility of becoming a bank or obtaining a financial license for your business, but without it even if you fit all the criteria required you won’t be able to secure any authorizations. Capital is the base to prepare a banking business to go out to the market, you cannot join into the market without adequate capital.

We often say that licensing (although complex in itself) is the solvable part, trying to start a Bank business without capital is often not possible.


Based on the Jurisdiction where you are planning to deploy operations you will be required specific things, as stated above capital will be one of them.

Requirements by authorities are generally extensive and difficult.

After dealing with countless financial regulators we’ve found that in reality they will often prefer no new banks to join their market. Adding a new player into their Banking System could potentially produce systemic risks, new banks are sometimes more exposed than well-established older equivalents, for them dealing with a new party could prove difficult and risky.

The regulator usually lacks free time, having a new player often requires more staff to be added with all its consequential costs and hurdles, even in a heavily regulated environment all tasks done by the regulator will be tailored to each specific licensee producing costs and consuming valuable time.

Financial Authorities will be very familiar with what your bank does, its current financial status your limitations as a company or group and any risks associated with your business.

You and all the key staff within the bank will be very well known by your regulator not only because of reporting requirements but due to the inherent risks that financial institutions pose to the Domestic market, a regulator’s main objective is provide stability to the system,

The requirements to open a Banking business vary broadly on each jurisdiction and there are specific provisions that could apply to you depending on the target industry, in most cases you should expect the following three everywhere.

1. Capitalization, again, prospective bankers should have capital not only as prescribed in the law but as needed within the sector.

2. Extensive Banking Experience, members of the prospective bank should have extensive banking background and former financial education.

3. Business Plan, a clear view on how the bank will achieve its objectives.

You can read more about this in a section we created specifically on how to become a bank, we strongly suggest you read it to better understand the complexities of the process.

If you want more information on becoming a bank you should read any of the following Sections

Become a Bank
How to Start a Bank
Requirements to Start a Bank

The first step in organizing a new bank business and preparing it for licensing is to build a strong business and strategic plan. As described in our various articles related with this topic, the plan must consider the seamless integration of the proposed business into the domestic market, it should include everything related with its financial planning and an in depth explanation of the management resources and abilities including the implications and possible impacts within the domestic economy.

Policies should cover everything from Human Resources to Anti Money Laundering, Know your Client and any other compliance task, your policies are the base from which you should expect a successful regulatory approval of your Bank Business License application and is an essential document for the operation of the business. It guides the various day to day activities of the bank with specific provisions that should seek to increase productivity and to avoid risks for all parties involved.


Who is behind a Financial Business if often more important than anything else, people behind a business is what makes the business succeed. As in all other industries In Banking attention is given to who is requesting the license other than to the Business Plan itself.

Experience in the banking industry is paramount, if you want to start a Bank Business you need to understand this, part of the evaluation on experience includes how the management team will deal with a variety of scenarios, having the right people on board is the key for success in this industry. In Finance as in any other industry you want to have the best Human Resources Possible.

All qualifications and experience being accumulated by all the members of the management team is the single most important factor when seeking a banking license. Intensive evaluation on individuals behind any potential bank business to be authorized will be extensive and detailed.

To be approved by regulators the senior management team must have extensive experience in banking and specific to the industry you are targeting, this should come with a verifiable history, the regulator will likely hire a consultancy firm to review your application and all relevant senior management history background.

Red Tape is certainly an aspect to consider, licensing a bank business is a complicated and very specialized task, you need to seek independent advisory to be able to plan accordingly.

When planning the structure of your board of directors and the management team you should include individuals with successful careers in the financial industry, occasionally other fields are desirable for instance in the Crypto world, a coder with banking background would be a good fit for specific roles. These depends obviously on the specific business plan that has been designed initially, anyone involved should have impeccable background and extensive education skills in Finance.


Starting a Bank Business is complex, but if you have capital and all the above qualifications is possible, in any case attention to specific details should be given since the planning stage.

As a general rule, the banking industry or the financial services industry tends to be rather more complex and bureaucratic, if you have the capital perhaps we can help, Financial Licensing Advisors has extensive experience in licensing new banks and we will provide all the help necessary every step of the way to help you Start a Bank Business.

If you want consultation we can also help you at a flat rate per hour. If you wish to explore more licensing opportunities and you are interested in moving forward with a license you can reach us out at [email protected] or contact us for further questions on this regard.

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