Is Electronic Money Institution (EMI) The Future Of Banking?

Start-ups are joining the ranks of this market


The EMI (Electronic Money Institution) Fintech industry is experiencing a period of expansion as numerous advanced start-ups are joining the ranks of this market. Now that the market offers a large number of EMI options it is important to remember that not all EMIs have the same business model or scale of technological capabilities. Some EMIs offer more advanced functions than others with state-of-the-art mobile solutions, apps and online options while other EMIs offer very basic services. Whatever kind of EMI you are looking for you will be able to find one which suites you and meets your personal or business banking needs.

How do EMIs Surpass Traditional Banks?

EMI licensed businesses can offer a range of e-finance services and solutions to both private and corporate clients. The EMIs offer the same services that traditional banks offer but with the addition of innovative extra features:

1. .State-of-the-Art Solutions 

In the Fintech world, you will find modern banking systems, an upgraded user experience design, improved user interface, and overall superior user experience. The cutting edge systems and general innovation of EMI companies is a step above conventional banking. Not only will the user find the experience easier and more user-friendly but also new technologies are implemented, for example fingerprint and face login authentication. With EMIs you can usually have one login process to cover a whole range of services.

2. Enhanced Risk Protection and EML Procedures 

EMIs are a relatively recent development in the financial industry and as such, they have modern internal systems with the ability to conduct online monitoring and detect any suspicious activity. This sophisticated and technical ability is rarely found in traditional banking systems. There is a complex set of rules regarding Anti-Money Laundering which all providers of financial services must abide by. Financial institutions which are unable to audit customer account activity are putting their license in jeopardy.

3. Understanding the Internet, digital world and global online environment

To meet the financial needs of new businesses financial institutions need to have an understanding of the new client’s start-up business. Traditional banking institutions have less of (or no) understanding of new start-up businesses and their needs in the digital, online world. EMIs, on the other hand, are built to deal with the needs of modern new businesses. The EMI start-ups are young, innovative and highly driven just like the new corporate clients and therefore can identify with new businesses and recognize their needs much better than old-school banking institutes.

Why EU Countries are Enthusiastic about Fintech

In recent years there have been several innovative advances in the European Union’s e-commerce industry aiming to increase the EU’s economic fortune and make the EU financial industry a competitive contender in the digital world of finance.

This chart shows the total amount of EU payment and e-money institutions over the last few years. This data as supplied by ECB:

Choosing an EMI

With so many EMIs entering the marketplace in recent years it can sometimes be hard to choose which one meets your business or personal banking needs. Each EMI licensed uses a different business model, a variety of methods, and offers a selection of banking services, and each one comes with its own fees and charges. Set for yourself a clear list with your requirements and choose an EMI that best meets your business needs.


Michael Dewan is head of PR at GBO International Financial Services LTD . GBO is becoming a world leader in providing corporate services for international companies. These services include assistance with: incorporation of companies, opening business bank accounts, licensing, payment solutions, nominee services and more. GBO offers the most innovative A to Z financial solutions for high-tech companies, eCommerce, and more.


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