Latvia-based financial institution Magnetiq Bank has announced its plans to support fintechs in fully complying with 2025 ECB regulations by providing safeguarding accounts solutions. Considering the evolving fintech landscape and the regulatory requirements becoming more rigorous, Magnetiq Bank, an institution focusing on serving the needs, demands, and preferences of fintechs, startups, and ecommerce businesses, intends to equip its clients with safeguarding accounts that comply with upcoming European Central Bank (ECB) laws.

Through this, the bank aims to support companies in ensuring that their business continues to operate efficiently. The 2025 ECB regulations Beginning in April 2025, the ECB is set to no longer allow Electronic Money Institutions (EMIs) and Payment Institutions (PIs) to safeguard their clients’ funds with national central banks. This change results in non-bank Payment Service Providers (PSPs) needing to protect their finances with commercial banks, which in turn makes finding a compliant partner a necessity. Also, the new regulations impose that EMIs and PIs can no longer rely on national central banks for safeguarding, which mandates a substantial shift in operations.

The ECB’s laws focus on promoting competition and efficiency in retail payments. However, this pressures fintechs to implement safeguarding solutions with commercial banks. Failure to conform in time can lead to non-compliance, possible disruptions in business operations, and loss of client trust.

Magnetiq Bank’s offering In a bid to support EMIs and PIs in this transition, Magnetiq Bank plans to provide them with safeguarding accounts, allowing them access to more than 100 currencies which assist in simplified international transactions and efficient foreign exchange activities. Also, the bank supports Visa, Mastercard, Apple Pay, and Google Pay, delivering several payment acceptance options. Moreover, Magnetiq Bank’s Banking-as-a-Service (BaaS) platform provides API integration which focuses on automating businesses’ operations while maintaining compliance. The bank underlined its commitment to assisting fintechs in mitigating complexities, while its suite of solutions intends to serve the needs of companies, ranging from safeguarding accounts, payment processing, and foreign exchange transactions.

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