Digital Banking & Neobanks

Specialized AML/CFT compliance and licensing support for digital banks and neobanking platforms across multiple jurisdictions.

Digital Banking & Neobank Compliance Solutions

Modern digital banks and neobanking platforms face unique compliance challenges. We provide specialized support to help you navigate complex regulatory requirements while maintaining the agility that defines digital banking.

Our Expertise

We work with:

  • Neobanks: App-based banking platforms
  • Challenger Banks: Digital-first competitors to traditional banks
  • Banking-as-a-Service (BaaS): Platform providers
  • Digital Wallets: Payment account providers
  • Embedded Finance: Companies embedding banking services

Compliance Challenges for Digital Banks

Digital banking presents specific compliance complexities:

Customer Onboarding

  • Digital Identity Verification: Remote customer identification
  • Automated KYC: Streamlined onboarding while maintaining compliance
  • Risk-Based Approach: Balancing friction with risk management
  • Biometric Authentication: Compliance considerations

Transaction Monitoring

  • High Volume Processing: Monitoring thousands of daily transactions
  • Real-Time Detection: Instantaneous payment screening
  • False Positive Management: Reducing alert fatigue
  • AI/ML Compliance: Using advanced analytics responsibly

Regulatory Engagement

  • Sandbox Participation: Navigating regulatory innovation programs
  • License Applications: Restricted banking licenses
  • Ongoing Reporting: Regulatory returns and notifications
  • Audit Readiness: Maintaining regulatory-grade documentation

Licensing Pathways

We support digital banks through various licensing routes:

Australia

  • Restricted ADI: APRA restricted deposit-taking license
  • Full ADI: Transition from restricted to full authorization
  • AFSL: Financial services components

United Kingdom

  • Mobilisation License: FCA/PRA restricted banking authorization
  • Full Banking License: Unrestricted deposit-taking
  • E-Money Institution: Alternative to full banking license

Singapore

  • Digital Full Bank: MAS digital bank license
  • Digital Wholesale Bank: Wholesale-only operations
  • Major Payment Institution: Payment services licensing

Our Services

Pre-Launch Support

  • Regulatory strategy and licensing pathway analysis
  • Business model compliance review
  • License application preparation
  • Regulatory engagement and liaison

Compliance Framework

  • AML/CFT program development
  • Transaction monitoring system design
  • Customer due diligence procedures
  • Sanctions screening implementation

Technology Integration

  • RegTech vendor selection and integration
  • Compliance automation design
  • Reporting system setup
  • Audit trail requirements

Ongoing Advisory

  • Regulatory change monitoring
  • Compliance health checks
  • Audit support
  • Training and awareness programs

Key Regulatory Considerations

Open Banking & APIs

  • API security and compliance
  • Third-party provider due diligence
  • Data protection and privacy
  • Consent management

Financial Crime Prevention

  • Real-time fraud detection
  • APP scam prevention
  • Mule account identification
  • Cross-border transaction monitoring

Consumer Protection

  • Fair treatment of customers
  • Complaints handling
  • Financial difficulty support
  • Vulnerable customer management

Case Study: Successful Neobank Launch

Challenge: Australian fintech seeking restricted ADI license
Solution: End-to-end licensing support including business plan, compliance framework, and APRA liaison
Result: Restricted ADI granted in 12 months, full ADI transition within 2 years

Why Digital Banks Choose Us

✅ Fintech Experience: Deep understanding of digital banking business models
✅ Regulatory Relationships: Established connections with regulators across jurisdictions
✅ Technology Focus: Expertise in RegTech and compliance automation
✅ Practical Approach: Solutions designed for scalable digital operations

  • Embedded Finance: Compliance for non-banks offering banking services
  • DeFi Integration: Traditional banking meets decentralized finance
  • AI Regulation: Upcoming requirements for AI in financial services
  • Climate Risk: ESG and climate disclosure requirements

Ready to Launch Your Digital Bank?

Whether you’re seeking a banking license or building a compliance framework for an established neobank, we can help.

Schedule a Consultation