EU Bank License To Boost Banking Circle Expansion

Banking Circle has attained a new EU banking license.

Banking Circle is now licensed to do banking in Luxembourg after the Commission de Surveillance du Secteur Financier (CSSF) granted the license. The company has been making a name for itself in financial work over the last several years. Now, it can give access to real-time payments for financial institutions, regardless of borders and size.

With Banking Circle, businesses in payments and banking will be able to nab opportunities in new markets, without making large investments in their own internal infrastructure. Since Banking Circle already operates in the U.K., Germany and Denmark, the step into France will be a boost for the company.

Pierre Gramegna, Luxembourg Minister of Finance, said that Luxembourg's status as a leading financial center in Europe made it an ideal choice for Banking Circle's global, borderless banking solutions. He added that operating on a pan-European basis with other countries in the region would give clients further measures of security to operate as needed.

Since opening in late 2015, Banking Circle has seen growth over the years, and now works with EUR 130 run-rate annual payment volumes. Banking Circle CEO Anders la Cour said he believes the cross-border aspect of the company's work is vital. He also praised the company's work in helping with lending solutions for small businesses (SMBs) with limited access to funds.

Securing a banking license in Europe was a goal for the company, said la Cour, and it will help Banking Circle expand operations across geographies.

Late last year, Banking Circle was able to expand its reach to SMBs through a partnership with Cardstream, a payment processing company. The partnership allows Banking Circle to create a joint white-label lending tool that can aid SMBs. Cardstream CEO Adam Sharpe said the idea would be to let clients make loans to any partners based on their online payments revenue.



The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.