Mintos Seeks European Banking License
European multi-asset investment platform Mintos has initiated the process to obtain a banking license from the European Central Bank. The move is a strategic effort to enhance its regulatory standing and investor trust. If successful, the license would allow the fintech company to offer a wider array of financial services.
- The Riga, Latvia-based company was founded in 2014 by Martins Sulte and Martins Valters, both former consultants at EY. It initially launched as a peer-to-peer lending marketplace before evolving into a multi-asset investment platform. - Mintos currently serves nearly 700,000 registered investors and manages over €800 million in assets. The company has facilitated over €11.8 billion in loan investments since its inception. - The process to obtain a banking license from the European Central Bank is expected to take approximately 12 to 18 months, subject to regulatory approvals. - A key benefit of the license would be the ability to offer deposit protection up to €100,000, a feature aimed at increasing trust among retail investors. - The license would grant Mintos greater control over its infrastructure, including custody, clearing, and settlement, reducing reliance on third-party partners. Current partners include BlackRock for liquidity fund management and Trustly for real-time bank transfers. - This move is part of a larger trend of European fintech companies seeking full banking authorization to ensure long-term funding flexibility and enhance customer trust. - In 2023, Mintos reported revenue of €11.4 million, a 30% increase from the previous year, and achieved a net profit of over €650,000. The company has raised a total of $28 million in funding over six rounds. - The company's offerings have expanded beyond loans to include fractional bonds, ETF portfolios, and real estate investments. This diversification is a strategic effort to become a one-stop solution for income-focused investors across the EU.
