Skip to content

Fintech Onboarding Requirements for 5 Different Entities | Comparison

Fintech Onboarding Requirements Comparison

Fiat Exchange

The simplest Onboarding is probably at Fiat Exchange where you exchange currencies online, but the money is handled by regulated banks. Obviously your customers need to have bank accounts, but you do not need to do e.g. Liveliness Check, at least in Poland. However, still a lot of data might be useful, like the bank account verification.

You want to have the money coming from the same person, the same owner of the bank account as the one which was registered on Fiat Exchange platform. Probably also a declaration that he is a Beneficial Owner and / or a Politically Exposed Person (PEP). Some other Finetch Onboarding Requirements might be your customer’s Tax Residencies or Tax Number (Tax ID or Tax Account Number, TAN). That would be useful or might be useful for reporting or preparing some Tax Filings for such people (perhaps not crucial but useful). And it needs to be decided whether you want to gather all useful data or just get the minimum possible information to do the business.

Equity Crowdfunding

A bit more demanding business, in terms of Fintech Onboarding Requirements, is Equity Crowdfunding. For the time being in Poland, crowdfunding platforms do not gather much or nothing, but that will change probably with the European ECSP Directive coming in November. However, those platforms now offering crowdfunding in Poland leave these processes to the entities which hold the Register of Shareholders. Nowadays, these have to be digital and they could be provided by some regulated institutions and those institutions do require some data about the customer.

Also, from November 2022 crowdfunding platforms will need to do some sort of quasi-tests to be sure that the Investor knows what he’s doing with his money, like what he is investing in and what are the risks associated with it. You have to gather proof that he did it to all to classify the Investor as sophisticated or not sophisticated. It has to be done every two years.

Payment Institution / Crypto Exchange

More data is needed, so the Fintech Onboarding Requirements are higher for Payment Institutions or Crypto Exchanges. If you want to move money or cryptos you do need to confirm your end customer’s identity by the Liveliness Check, probably comparing it to passport or ID data.

“Fintech Onboarding Requirements might depend on geographical regions or jurisdiction of your end customer.”

Stock Brokers

Stock Brokers do have to do all of that stuff plus Adequacy Tests. Customer Onboarding is a cyclical or a constant ongoing process. So every time or every two years at least or when some triggers happen, you will have to do it all over again. Those Fintech Onboarding Requirements depend on geographical regions or jurisdiction of your end customer. So, for example, you might have to check whether they are not on Terrorist or international Sanction List, or if they are not Politically Exposed Persons.