Building a Strong Business Plan for an EMI Application

Building a strong business plan for an Electronic Money Institution (EMI) application is crucial to demonstrate your preparedness, viability, and commitment to regulatory compliance. Here’s a guide on how to structure an effective business plan tailored to an EMI application:

1. Executive Summary:

• Concisely describe your EMI’s mission, vision, and objectives.
• Highlight the unique value proposition and market niche you intend to target.
• Provide a summary of your financial projections and funding requirements.

2. Business Description:

• Explain the legal structure of your EMI (e.g., limited liability company) and its ownership structure.
• Detail the history and background of your EMI, including its founders and key team members.
• Clarify why you are pursuing an EMI license and how your services will address market needs.

3. Market Analysis:

• Conduct comprehensive market research to identify your target market and competitors.
• Analyze market trends, growth potential, and customer preferences.
• Present a SWOT analysis to highlight your EMI’s strengths, weaknesses, opportunities, and threats.

4. Products and Services:

• Describe the electronic money products and services you plan to offer, such as digital wallets, prepaid cards, or payment processing.
• Explain how these offerings meet the needs of your target audience and differentiate your EMI from competitors.

5. Regulatory Compliance:

• Detail your strategy for complying with Lithuanian and EU regulations, including anti-money laundering (AML) and know your customer (KYC) procedures.
• Highlight your commitment to data protection and cybersecurity measures.

6. Financial Projections:

• Provide financial forecasts, including income statements, balance sheets, and cash flow statements.
• Cover at least the first three to five years of your EMI’s operations.
• Include scenarios for different growth and risk scenarios.
  

  Risk Management:

  • Outline your risk management framework, including risk identification, assessment, and mitigation strategies.
  • Discuss how you plan to monitor and control risks to ensure financial stability.

  8. Operational Plan:

  • Detail your EMI’s operational processes, including IT infrastructure, customer support, and partnerships with banks or payment processors.
  • Describe your customer acquisition and retention strategies.

  9. Marketing and Sales Strategy:

  • Explain how you intend to acquire and retain customers.
  • Outline pricing strategies, marketing channels, and sales tactics.

  10. Management Team:

  • Highlight the qualifications and experience of your management team and key personnel.
  • Emphasize their expertise in finance, compliance, and fintech.

  11. Funding Requirements:

  • Specify your funding needs, including initial capital requirements to meet regulatory standards and support the start-up phase.

  12. Appendices:

  • Include any supporting documents, such as resumes of key team members, market research data, legal documentation, and references.