Fintech Banking License: Growth Killer or Growth Engine?

Alejandro Martínez · 2026-10-19

Getting a banking license as a fintech is a big deal. It opens doors to new products and services, but it also comes with heavy requirements – costs, delays, capital – that can slow you down. So why are more and more payments companies, small business lenders, and financing firms going for it? That was the focus of a recent panel discussion hosted by France FinTech and Linklaters. The panel featured leaders from Younited, Floa, and Defacto, who shared their experiences. Each had a different reason for pursuing a license, but they all agreed on one thing: it's a strategic decision that needs careful thought. ### Why get a license? Three different stories Defacto's journey started in late 2021 when the French regulator asked for clarity on their operations. They had to choose between getting their own license or partnering with a bank. Either way, capital requirements would apply. They went for their own financing company license, which took 13 months to get approved. Younited's story goes back to 2009. They wanted to offer a more responsible, digital approach to consumer credit. So they applied for a credit institution license and got it in 2011 after 24 months. For Floa, the challenge was keeping their license as capital requirements rose. Giving it up would have hurt partner trust, especially with the rise of buy now, pay later and the need for a European passport. ### One size doesn't fit all Regulatory requirements vary a lot depending on whether you're originating loans or distributing them, keeping them on your balance sheet or selling them. The right status depends on your business model and stage of growth. As Younited pointed out, sometimes using technology or partnering up can be a good alternative to getting your own license. In lending, every new dollar you lend ties up capital. To grow, you need to strengthen your capital base to meet prudential ratios. There are several ways to do that: - Generate capital through profitability - Raise capital regularly - Transfer risk, for example through securitization The originate-to-distribute model lets you grow with less capital. But it comes with costs, operational complexity, and dependence on funding markets – plus ongoing obstacles to cross-border securitization. Whether it's worth it depends on your stage and strategy. ### The shareholder factor Strong shareholders are crucial for a licensed institution because capital requirements apply continuously. Shareholders must be ready to inject capital when growth demands it. Floa knows this first-hand: for years they had two shareholders, one of which faced difficulties, and they had to consider regular capital increases. > "The license is not a badge of honor. It's a tool that must serve your strategy." – Panelist So, is a banking license a brake on agility or a lever for growth? The answer isn't black and white. It can be both. It all depends on your business model, your stage of development, and your ability to meet the demands. But one thing is clear: it's a decision that shouldn't be taken lightly.