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Fintech

FCA warns e-money bosses not to ‘mislead’ customers about risks

Fintechs must explain why they are different from traditional banks, FCA says

Monese is one of the many fintech firms in the UK that offers basic banking services operate on an e-money license
Monese is one of the many fintech firms in the UK that offers basic banking services operate on an e-money license Photo: Getty Images

The UK’s Financial Conduct Authority has written to chief executives of fintech companies over concerns that they are not making clear to customers that they are different from fully-authorised banks.

Many fintech firms in the UK that offer basic banking services operate on an e-money licence, meaning they are authorised to offer current accounts, money transfers and pre-paid services as long as customers’ money is held in ring-fenced accounts by a fully-permissioned bank.

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