The Swiss Financial Market Supervisory Authority (FINMA) has granted Relio the fintech licence, which enables it to operate independently of its partner banks. As a next step, the startup plans to launch a digital business account for SMEs.
Many companies in the Swiss financial sector struggle with bureaucratic hurdles when opening an account and throughout the entire banking relationship. Relio’s technological platform allows compliance to be largely automated. As a result, even complex companies can open a business account with a Swiss IBAN with just a few clicks. The startup was launched in December 2020 by Lav Odorovic. He previously built the German challenger bank Penta as founder and CEO. With Relio, he now aims to drive digitalisation in the financial industry in Switzerland.
After an extensive process, Relio obtained a fintech license from FINMA, marking a significant step in the startup’s journey. With the permit, the startup plans to launch a digital account for companies soon. The offering is particularly interesting for corporate clients with complex business models and international flows of funds. In this market segment, compliance and anti-money laundering requirements cause high expenses on the bank and customer side. Relio solves this problem by automating many compliance tasks.
“Thanks to our license, we work independently of partner banks and their outdated structures, processes and technologies. This is the only way we can drive the digitalisation of compliance and save our customers a great deal of bureaucracy,” says Lav Odorovic, CEO of Relio, about the advantages of having its own fintech license.
Fintech license as an innovation booster
The Swiss financial sector has lagged for a long time due to the complex regulatory and financial barriers to entry that were too high for new players. To promote innovation, the Swiss Financial Market Supervisory Authority established the fintech license in 2019.
Compared to a full banking license, the licensing procedures are simplified, and the capital requirements are lower. Public deposits are limited to up to one hundred million Swiss francs for each fintech. The funds may also not be invested or earn interest. Instead, they are deposited with the Swiss National Bank so that they can be paid out to clients again if a fintech company runs into financial difficulties. Thus, the new fintech authorisation opens up a lot of potential for innovation without exposing customers to high risk.
(Press release/RAN)
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