The European Central Bank (ECB) has granted Lithuanian capital company SME Digital Financing a specialised bank license following the assessment and proposal of the Bank of Lithuania.

Having secured the license, SME Digital Financing will now be able to accept deposits, provide account financing (factoring) services and grant business loans.

Contributing to further fintech development, specialised banks help boost competition as well as attractiveness and accessibility of banking services.

They have the right to accept deposits, grant loans and provide funds transfer and other usual banking services, however, specialised banks cannot provide investment and other similar financial services.

The opportunity to establish such banks was introduced in 2017 where the authorisation process usually lasts for roughly a year.

Currently, there are five other specialised banks carrying out their activities in Lithuania namely AB Mano bankas, Revolut Bank UAB, UAB GF bankas, AB Fjord Bank and European Merchant Bank UAB.

These specialised banks focus on the acceptance of deposits and provision of loans.

Recently in December 2020, ECB had granted a specialised banking license to Crius LT which is said to be preparing to begin operations soon.

Together with the ECB, the Bank of Lithuania is currently assessing six more applications for a specialised bank license.

Featured image: Bank of Lithuania