Fintech Licence

A regulatory authorisation permitting a firm to issue electronic money — digitally stored monetary value representing a claim on the issuer. In the UK, e-money licences are granted by the FCA under the Electronic Money Regulations 2011.

A controlled regulatory environment established by a financial regulator that allows fintech companies to test innovative products, services, or business models with real customers under relaxed regulatory requirements and close supervisory oversight. The UK Financial Conduct Authority pioneered the concept in 2016, and sandbox programmes now operate in over 50 jurisdictions worldwide.

A legal framework that governs the use, modification, and distribution of open source software, defining the rights and obligations of users and contributors. Key licence types include permissive licences (MIT, Apache 2.0, BSD) that allow broad commercial use with minimal restrictions, and copyleft licences (GPL, AGPL) that require derivative works to be released under the same terms.

A controlled testing environment established by a financial regulator that allows fintech companies and other innovators to test new products, services, or business models with real customers under relaxed regulatory requirements for a limited period. The FCA launched the first regulatory sandbox in 2016, and the concept has since been adopted by over 50 jurisdictions globally.

The integration of financial services — such as payments, lending, insurance, or investment — directly into non-financial platforms and customer journeys. Embedded finance enables companies like e-commerce platforms, SaaS providers, and gig economy marketplaces to offer financial products without becoming licensed financial institutions, typically through Banking-as-a-Service partnerships.

The authorisation granted by a government or regulatory body permitting a company to manufacture, market, or sell a product or service in a specific jurisdiction. Regulatory approvals — including drug approvals (FDA, EMA), financial service licences (FCA, MAS), telecommunications licences, and environmental permits — are recognised as contract-based intangible assets in purchase price allocations under IFRS 3 and ASC 805 when they arise from contractual or legal rights.

A financial ecosystem built on blockchain technology that provides financial services — including lending, borrowing, trading, insurance, and asset management — without traditional intermediaries such as banks, brokerages, or exchanges. DeFi protocols use smart contracts to automate financial transactions and are typically open-source, permissionless, and composable.

The EU regulatory framework for insurance and reinsurance companies, establishing risk-based capital requirements, governance standards, and supervisory reporting obligations. Solvency II uses a three-pillar structure: quantitative requirements (Pillar 1), governance and risk management (Pillar 2), and disclosure and transparency (Pillar 3).