Post From The Regulator: FinTechs On Bafin’s Radar!

BaFin is likely to monitor FinTechs more closely after the debasement in the Wirecard case. That certainly can’t hurt. Check 24‘s C24 Bank and Solaris have recently received unpleasant notices from financial regulators.

The financial supervisory authority BaFin has issued an order to the Munich C24 Bank in December 2022. However, it became known on February 2. Deficiencies were discovered during the regular special audit in the summer of last year. Specifically, this involves ensuring proper business organization but also additional capital requirements.

“We already met the increased capital requirements before the audit, and these can be met now and in the future without any further capital measures,” a Check24 spokesperson explained. To this end, he said, a roadmap for remedying deficiencies had been agreed jointly with BaFin and the Bundesbank. However, the bank could not comment on a time frame.

Another fintech also recently received a Bafin notice, and here the trouble seems to be greater. Solarisbank, which now operates as Solaris, is known as a service provider for various fintechs and companies, and handles ADAC credit cards, among other things. Here, Bafin has ordered measures to be taken to ensure proper business organization in risk management and money laundering prevention and to limit risks. A special supervisor will also be appointed to check this.

Solaris did not respond to an inquiry from the F.A.Z.. To the “Handelsblatt” Carsten H√∂ltkemeyer, designated head of the fintech, commented as follows: “We welcome Bafin’s move, we have no secrets.” He added that they are in a permanent exchange. “We think it’s good and right that we have the proper implementation of our improvement strategy reviewed again by an independent observer.”

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