What is an EMI?
What is an EMI, and is it the same as a bank? A quick explainer on what an Electronic Money Institution actually does, how it differs from a traditional bank, and why customer funds stay safeguarded.
Transcript
What is an EMI, and is it the same as a bank? An EMI is an Electronic Money Institution.
It is a regulated financial institution that provides services such as payment accounts, IBANs, cards, money transfers, and electronic money.
But an EMI is not the same as a traditional bank. Banks may offer lending and deposit products, while EMIs mainly focus on payments and electronic money.
EMIs are also required to safeguard customer funds by keeping them separated from their own operating funds.
Here at Demivolt, we are a European regulated EMI. Follow for more Fintech Explained by Demivolt, and don't forget to like and subscribe.
About this episode
An EMI, or Electronic Money Institution, is a regulated financial institution authorised to provide payment accounts, IBANs, cards, money transfers and electronic money. It operates under its own dedicated licensing framework rather than a banking licence.
The key difference from a traditional bank is scope. Banks can offer lending and deposit-taking products alongside payments; EMIs focus specifically on payments and electronic money, without extending credit or taking deposits in the banking sense.
Regulation still applies fully to EMIs: customer funds must be safeguarded and kept separate from the institution's own operating funds. Demivolt operates as a European regulated EMI on exactly this basis.
Key takeaways
- An EMI (Electronic Money Institution) is a regulated institution offering payment accounts, IBANs, cards, money transfers and electronic money.
- EMIs differ from banks: banks can lend and take deposits, EMIs focus on payments and electronic money instead.
- EMIs must safeguard customer funds separately from their own operating funds, same as Demivolt does as a European regulated EMI.
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