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Fintech Consulting & Licensing Support in New Zealand
New Zealand is a close-knit business marketplace that wholeheartedly welcomes a progressive business model. It provides ground to the active fintech community, and its chief financial regulator, the Financial Markets Authority (FMA), aids innovation and provides regulatory support for all forms of fintech sectors. The Fintech insight report for New Zealand for the year 2022 showed a compound annual growth rate of 32% in Fintech revenue. In 2019, incentives on tax were introduced, up to 15% on the amount spent on research and development, resulting in speedy growth of fintech in New Zealand with NZD374.6 million of investments. These data highlight the fintech success story of New Zealand to the world, and if you are a startup or an established fintech industry, New Zealand could be an ideal market for you to conduct your business. But not without the support of Enterslice because we provide valuable assistance that helps any fintech sector to link its business to the fintech eco-system of New Zealand; our experts know how you could make your place in the fast-paced New Zealand business zone; we will make you a fintech industry capable of delivering innovative and accessible financial services.
Understanding Fintech & Fintech Licensing
Fintech combines financial services with technology to produce new types of financial services and new delivery methods. Any business that uses technology to enhance and automate its financial services-oriented products and processes is a fintech business. Today, a fintech business model is any technologically enabled financial innovation that might produce new business models, applications, processes, or products that can affect the financial market. Due to stringent consumer protection rules, these fintech business models can't be part of the public domain without obtaining authorisation from the regulatory authorities; this authorisation generally is in the form of licensing, which gives the right businesses to have innovative fintech models to introduce in the public domain.
Each nation has separate policies regarding fintech licensing, and an entity willing to obtain the exact needs to register them according to the local laws. These licensed fintech entities rely on electronic channels for their distribution, making cross-border interactions and outsourcing products easy, converting the global market into a unified marketplace.
Enterslice Fintech License Support to Aid Your Business To
Start With Purpose and Mindset
Let us root the journey of your fintech company with support and determination; let us help you create purpose for your business with a sustainable business model.
Co-Create the New Culture
Let us create a healthy space within your company to let innovation breathe and give Enterslice a chance to make a business a humane-friendly business space.
Think outside the Box
Enterslice, with your innovative approach, could bring diversity to your business by aiding experiments and intrapreneurship culture within your organisation.
Enterslice Transforming You into A Fintech Licensed Entity and Making You
Desirable
Making your business meet the customers' expectations, addressing their unmet needs, and creating a value proposition for your customer base.
Feasible
Our responsibility will be to make your company technologically enabled by making your existing operating model sound enough to fill the gaps in existing technology.
Viable
We will make your business customer-centric with a business model customised as per your needs, which can aid an increase in revenue. With Enterslice, make your business efficient and improved.
Risk Bearer
Fintech business circles around various risk-involving factors due to the interference of technology, external factors such as legal and compliance related, and decreasing the risk aversion of the companies, with the help of Enterslice, create a risk accessing and mitigating business model.
Fintech Sectors in New Zealand and Our Services
Fintech sectors in New Zealand
The fintech ecosystem of New Zealand is small yet highly developed, with a variety of fintech sectors as a part of it.
The New Zealand fintech sectors consist of capital markets to financial advisory, funding, and insurance sectors.
Banking Sector
Reserve Bank of New Zealand governs and regulates banking in New Zealand. Banks are considered important entities that maintain the stability of New Zealand's financial system. The traditional banking institutions of New Zealand, with the help of incubators and accelerators, are transforming them into virtual banking facilities to keep pace with the changing times.
Crowdfunding
The Financial Markets Conduct Act of New Zealand includes crowdfunding regulations and licensing requirements within its ambit. The Act states equity-based crowdfunding, where the shares are issued from the public and the company raises money from the public through that, and there is no provision for reward-based crowdfunding.
Crypto Assets
Virtual assets such as cryptocurrencies and crypto assets, digital coins, or tokens are all regulated within the ambit of the Financial Markets Conduct Act 2013, the Anti-Money Laundering Act 2013 and the Countering Financial of Terrorism Act 2013, and “financial service providers (registration and Dispute resolution) Act 2008.”
Financial Advice Provider (FAP)
The entities conducting business providing financial advisory must be registered in the Financial Service Providers Register (FSPR) and obtain a financial advice provider license issued by the FMA.
Peer-to-peer lending service providers
A peer-to-peer lending service provider issues debt security to another person for personal, charitable, or small business purposes. They offer debt securities and are governed by the Financial Markets Conduct Act 2013.
Enterslice Customized Fintech License Advisory for New Zealand
Fair conduct program assistance
In New Zealand, to ensure effective compliance with the policies, processes, systems, and controls that are established by the regulatory authority, the fintech entities must ensure fair conduct by designing an acceptable conduct policy for their organisation, the Paper works of which needs to be submitted to the regulatory authorities. Creating this program requires a comprehensive understanding of compliances that the authorities expect from a fintech entity; Enterslice could aid in formulating the fair conduct program for you. We will ensure that your FCP follows section 446J of the CoFI Act.
Legal Compliance Assistance for Licensing
Enterslice, with its legal experts, will help you register your firm as a limited company, a partnership firm, or an LLP. Before obtaining the license, the company must be a registered entity. Our team of experts will assist you in writing your business with the tax authorities and formulate employee contracts and equity agreements for you. We will make the licensing process more accessible and less complex while informing you of each detail.
Fundraising and Investment Support
A Fintech startup must acquire funding from functioning investors; our team will connect you with the investors so that you can initiate your startup procedure with decent funding.
Tax Compliance Protocols Assistance
Taxation is the very basis that decides the longevity of any business. Enterslice has expertise in dealing with taxation-oriented protocols. We will help you understand the taxation dynamics of New Zealand regulatory authorities.
Application Preparation and Communication Assistance
Enterslice can assist you in preparing an ideal application that will ensure you a FinTech license. Our experts have been dealing with the New Zealand fintech marketplace for years and know the inner dynamics of the market; we will assist you in formulating Documents and can also establish third-party communications with the aid of residents eligible to be in the quorum of the organisation. We will aid the building blocks for your financial service by assisting you in ID Verification, KYC checks, sanctions screening, match list checks, jurisdiction selection, and structuring advice.
Global Crypto Compliance 2024: Regulations in Every Country
Global Crypto Compliance 2024 provides a comprehensive overview of cryptocurrency regulations across the globe.
Download PDFOverview of New Zealand Fintech Landscape
For a very long time, New Zealand has been a testing land for fintech innovation-based industries and startups, making it a tech-savvy nation where around 90% of the population is connected to the internet. World Bank ranked New Zealand as the number one country providing an ecosystem and regulation landscape that helps ease business in the world's least corrupt country. The country has an early-stage investment fund named NZVIF, established in 2002 with around $245 million invested in 286 companies and 11 venture capital funds. The prime minister of New Zealand stated that the doors of New Zealand are always open for people with great ideas who want to turn them into reality; this statement proves the kind of pro-innovation environment New Zealand has.
Fintech examples in New Zealand
Xero
As per the reports of fintechNZ, there is a quadrupled growth of $4.3bn in the New Zealand fintech region. Xero is one of the earliest and most well-known fintechs in New Zealand, which revolutionised the accounting software industry from a desktop approach to a cloud-based product approach. The most significant benefitting factor of establishing a fintech in new-Zealand as observed by the founders of Xero was the fintech eco-system that New Zealand has, which allowed them to test their products before opening it in the international fintech marketplace along with enabling them to attract top talent bases with far less wages than are generally sought in the Silicon Valley.
Choice
Choice is a payment company based in New Zealand focusing on using blockchain technology to reduce merchant fees. They have recently received cryptocurrency-based funding from the NEM foundation and are now working with the Kiwi bank and acting as a fintech accelerator for the Kiwi bank. Choice has a growth pattern that is tough to attain by the fintech of any other region, but because it chose its establishment in New Zealand, it had rapid and quality growth.
Choose Enterslice
Similar to Xero and Choice, there are many fintech industries taking benefit of the New Zealand fintech zone; if you are a budding fintech startup or an established fintech industry making your way to international fintech markets with the support of Enterslice and its fintech licensing experts, you could very quickly convert your financial company to a big fintech giant of New-Zealand.
Challenges Faced Licensed Fintech Companies In New Zealand
Unrestricted environment
Although New Zealand is a small economy compared to other global giants, its fintech market is attractive and advanced. The reason is the unrestricted environment provided to the fintech entrants, resulting in illegal trading activities and defamation of the country’s financial market. Therefore, any entity applying to obtain a license in New Zealand must follow the AML and CFT-related regulations stringently and formulate internal policies against any unfair trade practices.
The compulsion of mandatory reporting program
Due to the rise of unfair trade practices causing defamation to New Zealand's financial market, FMA, the monetary regulatory authority, took steps to mitigate the same by introducing mandatory reporting programs for all licensed financial institutions, including fintech businesses.
Compliance Struggles
The regulations composed by the FMA for fintech licensing pose strict standards and guidelines for financial institutions, including fintech companies. At times, it becomes difficult for a fintech company to streamline their compliances similar to other financial institutions, due to which it is suggested that the fintech licensee, even before obtaining a fintech license, must consult with a fintech advisor who could make compliances easy.
Key Regulators of New Zealand
the Financial Markets Authority (FMA) of New Zealand and the Reserve Bank of New Zealand, out of which the Financial Markets Authority does the primary regulatory functions.
Financial Markets Conduct Act 2013 (FMCA)
Legislation such as the Financial Markets Conduct Act 2013 (FMCA) regulates the issue or transfer of financial products such as equity and debt-related derivatives. It includes the Financial Advisers Act 2008(FAA), which has in its ambit the regulations related to the fintech companies dealing in financial advisory-related business.
The Reserve Bank of New Zealand (RBNZ)
The Reserve Bank of New Zealand includes the banks registered within the Reserve Bank Act, systems for payments and settlements, non-banking deposit-taking entities, and other licensed insurers that are part of the Insurance Prudential Supervision Act 2010.
Department of Internal Affairs (DIA)
The anti-money laundering, counter-terrorism, and anti-gambling-related regulations are managed by the Department of Internal Affairs (DIA), which regulates these aspects of New Zealand's financial services.
Benefits of Fintech Licensing
Suitable fintech environment
New Zealand has a stable government, which is good, and has an approach to developing modern financial regulatory architecture. It has a high cloud adoption rate, making it a good testing ground for new fintech ideas.
Favorable geography
Proximity to the Asia-Pacific region is also one of the significant advantages for New Zealand because it has a favourable time zone and geography. New Zealand has a fast-growing fintech technology centre. In the last five years, the compound annual growth of fintech in New Zealand is 37.6%, with a revenue growth of $705 million.
Profitable investment zone
Provides opportunities for disruption and B2B support to existing financial services institutions, making them earn high returns and profitable opportunities for investment. The regulatory authorities are prudent and offer opportunities for a fintech to rise above the level.
Enterslice Customizing Fintech Licensing Procedure For
Documentation Assistance- Our fintech experts offer easy and hassle-free Paper works guidance with checklists and updated formats occasionally.
Compliance Support- establishing a cross-border fintech industry involves multiple compliances, which, when not followed in a proper pattern, cause delays in the licensing process. Our legal team will help you in systematic compliance formulation along with time-to-time compliance support per the regulation changes.
Expert Guidance- we customise fintech strategies per your company's business model. To achieve the same, we assign a dedicated fintech expert who will provide expert guidance and support and help you make the right decisions for your company.
Requirements for fintech licensing in New Zealand
To obtain a financial institution license, a fintech entity must fulfil the requirements such as the fit and proper requirements of the directors and senior managers, effective performance of the fintech entity, registration on the financial service providers register, appropriate control and supervision mechanism; the entity must have a business continuity plan for the scale and scope of the fintech service; the fintech company must have systems and processes in place to maintain the relevant records about the financial institution service. All these requirements must be annexed along with the license application, non-fulfilment of which will result in a delay in obtaining a license. Every fintech entity needs a consultant who can guide them through the process of procuring licenses smoothly.
Fintech licensing providers in new-Zealand
The two significant authorities of the New Zealand fintech marketplace, i.e., the Financial Markets Authority and the Reserve Bank of New Zealand, are responsible for giving licenses to the fintech entities, local and foreign.
The financial services legislation that covers fintech-related regulations are the Reserve Bank of new-Zealand Act 1989, the Insurance (Prudential Supervision) Act 2010, the Financial Markets Supervisors Act 2011, the Financial Markets Conduct Act 2013, non-bank deposit Takers Act 2013, the Financial Markets Infrastructure Act 2021 and credit contracts and consumer finance Act 2003.
Our commitment to you
Goal-based outcomes
At Enterslice, we value our clients' time and resources; therefore, we derive goal-based strategies to streamline our operations to achieve the same.
Consistency
We have a dedicated team of experts who know how to remain committed and objective and have the skills to settle a business.
Balanced approach
We aim to achieve the right balance for our clients' businesses, especially when it concerns the fintech industry.
Our success story
We have 10+ years of experience in the fintech domain along with licensing, company establishment, and other legal compliances, and our journey is full of success stories that we achieved through these years by making the right decisions for a budding or an established fintech business in Australia.
Hassle-free Fintech license procurement with Enterslice Fintech licensing services
Fintech licensing services must be availed by every fintech entity, especially when establishing it in a foreign country because licensing rules vary worldwide. A potential and strategic fintech licensing plan ensures easy license procurement because, in most of the nation, rejection of the license results in delay and add-on controls and compliances.
With the help of our consultation and advisory, you can focus on building the core of your fintech business. At the same time, we will ensure the developing license compliance per the regulatory framework.
Why choose us
Vision & core values
We have faith in your trust, and we can do anything to keep your trust intact; we engage the community without staking our core values and vision.
Customer-centric services
We understand that the core of any business is its employees; our team of experts are polite and competitive and responds efficiently to the queries of each customer; our belief is to develop long-term and trustworthy relationships.
Convenient and consistent
We provide our clients with an environment that is convenient and consistent for them. We work without friction and with the ties of trust and credibility.
Reputed & trustworthy
If you go by word of mouth, all our clients give positive feedback for our services, making us a reputed and trustworthy organisation.
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