The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht in German) supervises banks, financial service providers, insurers and securities trading in Germany. It is an independent institution under public law and subordinate to the Federal Ministry of Finance.
Among others, BaFin grants the licenses to conduct commercial financial activities, in particular in the field of payments and loans, and receives fees and contributions from the supervised institutions and companies. Depending on their structure, the various fintech business models may require a bank license from BaFin, e.g., in payments, funding or portfolio management.
Although BaFin has published several statements on fintech business models and the application of emerging technologies (e.g., blockchain, robo advisory, mining services), a final assessment often requires an individual case-by-case examination.
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