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Home Challanger banks Saldo Bank: From FinTech to Digital Bank

Saldo Bank: From FinTech to Digital Bank

Saldo Bank, a Lithuanian fintech, has recently introduced term deposits and continues to provide loans for consumers and SMEs across Lithuania. However, this is just the beginning of Saldo Bank’s plans to become a progressive neobank.

In 2019, Saldo Bank embarked on a new strategic direction, transforming from a domestic fintech business into an international digital bank.

In October 2021, they received a specialised bank licence from the European Central Bank, which was instrumental in their transformation.

Plans for Growth and Expansion

With the specialised bank licence, Saldo Bank plans to introduce new banking services, including payment cards, and grow its local team.

The company also plans to expand to other countries and is seeking professionals in software development, digital marketing, analytics, scoring, risk management, AML/KYC processes, and product development.

Saldo Bank’s business model is built on a fully automated lending engine, which streamlines customer onboarding and scoring processes, providing personalized loan offers instantly to all customers.

Lithuania’s Banking Sector

Lithuania’s banking sector has undergone a transformation in recent years. In 2018, Revolut, the first virtual bank or neobank, began operating in Lithuania.

Traditional financial and credit institutions have also successfully implemented the neobank concept, and the range of services offered electronically is constantly expanding.

By the end of 2021, there were over 260 fintech companies in Lithuania, making it an innovative city that relies on its mature digital infrastructure and highly educated talent pool for its fintech success.

Security and Stability in the Digital Era

With the transformation of the banking sector, banks are no longer just credit institutions; they are technology companies that hold credit institution licences.

This offers new opportunities but also poses new challenges. In the digital era, the security and stability of banking IT systems are becoming top priorities for the coming period.

In 2021, Luminor Bank transferred its IT infrastructure to technology giant IBM, reflecting the importance of this issue.

Passporting the Specialised Bank Licence

Saldo Bank plans to increase SME finance availability and expand its banking operations in Finland and Sweden by ‘passporting’ its specialised bank licence. Passporting allows a bank to offer services in other European Union countries without needing to apply for a licence in each country.

This will allow Saldo Bank to expand its services beyond Lithuania and continue to provide innovative digital banking solutions to customers across Europe.

One to Keep An Eye On

Saldo Bank’s transformation from fintech to digital bank is just beginning its journey towards becoming a progressive neobank.

With the introduction of term deposits, personalized loan offers, and plans for payment cards, Saldo Bank is positioning itself as a leader in Lithuania’s banking sector.

As the digital era continues to shape the banking industry, Saldo Bank’s fully automated lending engine and commitment to security and stability will ensure its success in the future.

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