Many fintechs and financial services start-ups see regulatory licensing as a mandatory but costly, time-consuming and burdensome process. This view misses the bigger picture - licensing, when done strategically, can be a launchpad for firms to access new capital, gain industry credibility and scale rapidly!

At Braithwate, we've supported numerous fintechs through their licensing journeys and have our finger on the pulse of the industry. Here's what the smart operators already know - strategic licensing and market expansion can be the key difference between a rapidly growing valuation and stagnation.

Licensing isn’t just compliance, it’s a commercial strategy

Across the globe, supervisory authorities implement regulation to safeguard markets and consumers, aiming to prevent misconduct and ensure financial stability. The financial services industry is one of the most highly regulated sectors, and compliance – especially across multiple jurisdictions - is inherently complex. Too often, compliance is simply seen as a box-ticking exercise or a way to avoid sanctions and fines.

Licensing isn't just about complying with regulatory requirements; it can also be a commercial growth strategy. In the financial services industry, regulatory compliance signals credibility and trustworthiness, and is a critical pre-requisite for securing licenses to operate in new jurisdictions. Once achieved, it can open the door to much more, including:

access to new customer segments eager to adopt innovative products and services;
deepen existing customer relationships with increased products and services; and
interest from investors and partners seeking to collaborate with firms that can operate seamlessly within their ecosystems and expand their network

Licensing unlocks growth and higher valuation

We performed a deep-dive analysis of the growth trajectories of several fintechs such as Revolut, Webull, and Wise. Our analysis reveals a common pattern - each one has capitalised on the momentum and strategic advantage of licensing and entering new markets to accelerate their growth and gain a higher valuation.

The UK neobank, Revolut, had a meteoric rise from 2018 to 2024, when they went from a $2.2B valuation to $25B. This growth was driven by the following licensing and expansion changes:

Obtaining a banking licence in Lithuania, gaining access to the EU markets.
Expansion into the APAC market, specifically Singapore, Japan and Australia.
Launching services in the USA and expanding into Brazil.

Unlike traditional financial institutions, Webull was born as a digital-first trading platform, yet it quickly recognised that scaling globally was a gateway to new users. By actively pursuing regulatory approvals across multiple jurisdictions between 2017 and 2024, Webull has been able to grow both its market access and investor appeal, reaching a $7.3B valuation. Here is a breakdown of their strategy:

Started operations in the USA, following SEC and FINRA approvals.
Launched services in multiple APAC and EMEA jurisdictions, such as Hong Kong, Singapore and UK.
Market entry strategy rollout for the Canadian and Mexican market.

This expansion strategy allowed Webull to tap into increasingly diverse customer bases, build regulatory credibility, and significantly raise its company profile.

The global money transfer fintech, Wise experienced a steady rise in valuation, jumping from just $37M in 2013 to $8.96B by 2023, following a similar path to the ones we have previously discussed.

Began operations under FCA supervision in the UK.
Launched services in the EU by 2013.
In a span of 5 years, 2018 to 2023, Wise expanded across APAC, including Turkey, the UAE and Singapore.
Entry into North American markets with services launched in USA and Canada.

Growth stalls when the challenges are underestimated

Despite the clear upside, many companies struggle to translate their expansion ambitions into realistic outcomes. Several common pitfalls can derail progress, such as:

Unclear regulatory expectations - Application requirements and regulatory expectations are often not easily understood, leaving firms uncertain on how to proceed.
Extended timelines – Authorisation review processes frequently take longer than initially anticipated, driving up costs and stretching internal resources.
Incomplete or poorly timed submissions – Incomplete documentation or poorly developed business plans and operating models can lead to costly delays and heightened scrutiny from regulators.

When companies underestimate the complexity of the process, momentum is lost. In many instances, these missteps can cause licensing efforts and market entry strategies to be delayed—or fail altogether.

Introducing FintechXpndr

At Braithwate, we’ve worked with fintechs across various growth stages - from early-stage challengers to mature scale-ups - and have first-hand experience of helping firms achieve authorisation and focus on their growth strategy.

That’s why we created FintechXpndr: a tailored and automated solution that helps fintech firms navigate licensing across multiple jurisdictions, not just quickly but strategically, avoiding the most common pitfalls.

We help you:

Understand the most appropriate licenses to apply for in each jurisdiction based on your business model and growth strategy
Map out licensing requirements in line with your business model and roadmap from the start until the day you obtain your licence.
Develop robust and comprehensive applications and supporting documentation using our library of templates and policies.
Pre-empt regulator expectations to avoid back-and-forth cycles.
Launch in key markets like the UK, EU, Singapore, UAE, and more.

It’s not just about getting authorised. It’s about using licensing to accelerate growth.