Banking licensing

Whether you’re looking to expand your business, re-structure post Brexit or build a new innovative bank, you’ll need to apply for a banking license with the PRA and FCA.

UK banking authorisation is a complex process and needs a detailed understanding of the steps required.

Do I need a banking license?

First, it’s important to consider whether a full banking license is appropriate for your circumstances. Sometimes there are other options than full PRA authorisation. We can help you consider whether or not you need a banking licence and help you prepare for the PRA’s initial questions as well as the documents required along the way.

How do I prepare for the banking application process?

At the very first meeting, before you start the application process, the PRA will ask questions such as:

  • What other business models have you considered and ruled out to arrive at a bank being the best legal and economic structures?
  • What market research have you undertaken to ensure your business is viable?
  • What is the rationale for each type of product and service to be offered and what associated risks have you identified?
  • What regulatory permissions are you planning to apply for?

What goes in an application pack for a banking license?

The application pack you’ll need to prepare has to be comprehensive and include documents such as:

  • Detailed regulatory business plan
  • Evidence of business viability
  • Financial projections for 5 years (capital and liquidity)
  • Corporate governance structure
  • Risk management and control framework
  • Customer journey
  • IT infrastructure.

Working with the PRA and FCA on banking authorisation

Throughout the process you’ll need to attend a series of meetings with the PRA to discuss these elements and answer detailed questions. You should also be ready to discuss your authorisation with the FCA at any time.

We can help

We can guide you through the banking authorisation process from start to finish working with you to put together documentation and prepare for meetings. We’ve helped over 500 firms with authorisations over the years including well known challenger brands. Our people have worked both in-house in the banking sector and as regulators supervising banks.

We can help you on the journey from initial concept through to becoming a regulated firm.

Start your journey

Get in touch using the the form below and a member of the team will get back you as soon as possible.