Magnetiq Bank – setting the standard of future B2B banking

Magnetiq Bank is redefining the landscape of B2B banking, particularly within the FinTech and e-commerce industries. The bank’s mission is to become the first choice for FinTech payment institutions, serving as a strong partner and bridging the gap between regulators and FinTech companies. Built on the belief that banking should be simple, accessible, and efficient, Magnetiq Bank embraces the latest digital trends to provide a seamless and user-friendly experience.

This transformation was initiated in December 2023 following the acquisition by Latvia’s leading investment bank, Signet Bank AS, which became the sole shareholder and parent company of AS Magnetiq Bank. In June 2024, Magnetiq Bank became the first bank to join the Fintech Latvia Association, reinforcing its role in the FinTech industry. Just a few months later, in October 2024, Magnetiq Bank made history as the first Latvian bank to join Fintech Hub LT, demonstrating its dedication to innovation and collaboration in the FinTech sector.

”Magnetiq Bank was established to address the increasing demand for financial products and services tailored to FinTech, e-commerce businesses, and the advancement of financial innovations. Our goal is to provide best-in-class service to our clients who require technologically advanced and visionary payment and banking solutions to help their business solidify and grow,” explains JAKUB WIĘCŁAW, chairman of the board at Magnetiq Bank and a seasoned financial and banking technology professional with more than 15 years of experience in driving FinTech innovation and strategic business growth in Europe.

This shift underscores the bank’s commitment to fostering financial innovations and enhancing the availability of digital products in the banking sector.

Innovative Banking Solutions

Magnetiq Bank distinguishes itself by offering a comprehensive suite of services designed to meet the unique needs of its clientele, including delivering knowledge and fostering relationships to navigate regulatory challenges effectively.

Other areas would be Banking as a Service (BaaS), which empowers Electronic Money Institutions (EMIs), Small Payment Institutions (SPIs), Peer-to-Peer (P2P) lending platforms, and Crypto-Asset Service Providers (CASPs) by providing access to licensed banking infrastructure. This allows these businesses to launch, manage, and scale their products more effectively.

Furthermore, Magnetiq Bank delivers secure and efficient payment solutions specifically tailored for e-commerce merchants and payment service providers. These solutions facilitate transactions in over 100 currencies, enabling global reach and enhancing operational efficiency. Finally, to ensure the safety of client funds and build trust, Magnetiq Bank provides segregated accounts, keeping these funds separate and protected in accordance with regulatory requirements.

Rapid Onboarding and Integration

“At Magnetiq Bank, we recognize the critical importance of time-to-market in the FinTech industry. That’s why we’ve streamlined our onboarding process, enabling clients to move from the initial meeting to a signed agreement in just one to two months—far faster than the 5-7 month industry average in the Baltics. Our deep expertise ensures a seamless and efficient experience,” says JAKUB WIĘCŁAW.

To further ensure a seamless experience, Magnetiq Bank offers an almost DIY product through APIs, allowing clients to connect with minimal assistance from the bank. While customisation is available, the primary focus is simple integration, enabling faster deployment than competitors. Companies leveraging Magnetiq Bank infrastructure can access payment systems and introduce embedded financial services, positioning themselves at the forefront of future banking trends.

The new direction within banking is finding its way around the globe, where companies from Starbucks to Uber and Shopify are embrasing the possibilities. The market has in international media been estimated to grow at a rate of 29 pct. annually for the next 5 to 7 years.

Embedded Banking Services and a partner approach

The bank envisions a future where large corporations will be even more prone to enhance customer loyalty through embedded banking and credit card services. For instance, via integration of payment cards into mobile applications, leveraging their financial capabilities through Magnetiq Bank infrastructure. This approach allows companies to offer banking services without directly managing the associated complexities, positioning Magnetiq Bank as a pivotal partner in such initiatives.

Unlike traditional banking models, Magnetiq Bank proactively monitors e-commerce transactions in real time. This approach enables the bank to act as a partner rather than merely a service provider, as it plans to offer quick loans and working capital based on live transaction data. This daily monitoring ensures financial solidity and will provide clients with timely support to fuel their growth.

”At Magnetiq Bank, we believe in constant evolution. We’re driven by continuous development, combining innovative and efficient financial solutions with cutting-edge technology. Our goal? To unlock new potential and growth for our clients. That’s our commitment to modernizing financial services,” JAKUB WIĘCŁAW, summarizes.

Strategic Expansion Plans

Magnetiq Bank has outlined ambitious plans to expand its services within Poland and the Baltic regions over the next 12 months, with aspirations to penetrate other European markets subsequently. The bank’s focus on quality, regulatory compliance, and a comprehensive service portfolio positions it well to attract significant players in the FinTech industry.

Despite the relatively small population of approximately 6 million in the Baltics, the region’s FinTech sector is burgeoning, and Magnetiq Bank is poised to support and capitalize on this growth.

“It is hardly an exaggeration to claim that Magnetiq Bank is setting a new standard in future banking by aligning its services with the evolving needs of FinTech and e-commerce businesses. Through innovative solutions, rapid onboarding, and a client-centric approach, the bank is not only addressing current market demands but also anticipating future trends in the financial industry. As it expands its footprint across Europe, Magnetiq Bank is poised to become a leading partner for businesses seeking advanced and reliable banking solutions,” concludes JAKUB WIĘCŁAW.