Registration of
offshore companies
Рус
Licence for digital banking in Georgia in 2020

How to obtain a licence for digital banking in Georgia in 2020

2020-08-25
722

Georgia is located in the Western part of Transcaucasia. The country's economy has been growing in recent years. The most developed industries in the country are food and metallurgy. The state occupies one of the leading positions in the rating of countries for ease of doing business. It is easy to get a license for digital banking in Georgia. To apply for a business licenсe, please contact our specialists in IT-OFFSHORE.

Banking activity in Georgia

According to the latest data, the number of branches and representative offices of foreign commercial banks in the country is growing. Any foreign commercial bank can open a branch. A branch of a bank must be registered with the relevant state authority. Banks must obtain a licenсe before starting activities.

Before opening a branch, the National Bank of Georgia conducts a thorough inspection. A banking licenсe may be issued only with the consent of the state supervisory authority and all documents.

Digital banking in the country has a relatively low level of development. Therefore, in order to create good conditions for innovative companies that are planning to develop the digital sector, the regulator has started working on issuing licenсes. The National Bank has drawn up licenсing principles for Digital Bank in Georgia 2020.

Basic Criteria

By developing Digital Bank in the country, the National Bank contributes to the appearance of financial products and optimization of large data sets. Introduction of innovation promotes competition and development of wholesale services by banks.

Digital banking must meet a number of requirements:

  • Provision of services to users;
  • Provision of services on the local market;
  • Application of optimal business models;
  • Creation of accessible banking;
  • Introduction of electronic means for identification purposes.

Only firms that meet the conditions may apply for a business licenсe. They must take into account the banking criteria, show the presence of a quality business model. There must be a detailed business plan, the main objectives of the activity. The company should also have a plan of work stoppage, presence of risk analysis. All legal requirements for the permit must be met.

How to get a licenсe

The license for digital banking in Georgia Digital Bank can be issued in several stages. In the process of filing a document, it is important to identify possible risks to the business model and promptly eliminate them. The National Bank analyzes the application in detail in order to perform a qualitative check.

The business model is preliminarily checked for compliance with licensing criteria. Basic conditions for obtaining a licenсe:

  • The smallest amount of capital is 10% of the smallest capital established for commercial financial organizations;
  • Capital requirements are met;
  • All requirements specified in the business model are complied with.

The model is being tested for compliance with the provided concept. It is necessary to provide the test results, audit reports including the risks of using third-party systems. After that, permission is given to carry out operations if the rules established by the National Bank are observed.

Licenсe and passing the test allow opening current accounts first. In the future it is possible to attract deposits, provide complex financial products, perform international operations.

In addition to licensing in Georgia, the market is not very developed and has great potential. The disadvantage is that the licensing principles may change and there may be some modifications that may complicate obtaining a licenсe.

Apply now

and get a personalized offer