Did you know that in 2024 the average level of bank fees for fintech companies in Europe and Asia increased by 18%, and in some jurisdictions account servicing fees for business accounts exceed 0.5% of turnover? For many entrepreneurs these are not just numbers, they are a strategic challenge that directly affects competitiveness, scaling and even the survival of a business.
In this article I will share not only analytics and current trends, but also practical strategies that the COREDO team successfully implements for clients in the EU, Asia and the CIS.
Bank fees and fintech competition
Bank fees: this is the charge levied by banks for various services: payment processing, account servicing, executing transactions, using payment gateways, as well as interchange and merchant fees. For fintech companies these expenses become not only an operational item, but a factor that determines growth and scaling opportunities.
Types of bank fees in fintech
Interchange fees: fees charged by issuing banks for processing card transactions, critically important for payment services and BNPL platforms. In the EU the interchange fee level is regulated, but in Asia and Africa it can be significantly higher, which affects the profitability of fintech projects.
Merchant fees: fees that payment systems and banks charge merchants for accepting cashless payments. For fintech companies providing payment solutions, this is one of the key factors in pricing and competitiveness.
Account servicing fees and international transaction fees often become a barrier to entering new markets, especially for startups and small and medium-sized businesses. For example, in some Asian banks the fee for an incoming international payment reaches 0.25–0.5% of the amount, and in Europe additional charges may be imposed for non-residents.
Regional specifics: In the EU a unified policy for regulating interchange fees is in force, which creates a more predictable environment for fintech. In Asia and Africa fees vary many times over, and lack of transparency can significantly complicate financial planning.
Thus, the fee structure and the degree of their regulation directly affect the accessibility of financial services and the strategy for fintech companies entering new markets, and banks often use fees as a tool of competitive pressure, which is discussed in more detail in the next section.
How banks use fees against fintech
COREDO’s practice confirms: banks often use fees as a tool to limit fintech competition. Among the most common strategies:
- Raising fees for new or fast-growing fintech companies, especially in the payment services and BNPL segments, which reduces their ROI and slows scaling.
- Introducing technological barriers — for example, limited access to banking APIs or complicated integration procedures with banks’ digital ecosystems.
- Exclusive terms for large corporate clients, while fintech companies are offered less favorable rates and service conditions.
The COREDO team implemented a project to support a European fintech company that faced a sharp increase in account servicing fees at one of the major EU banks. Thanks to optimizing the legal structure and moving part of the operations to a more favorable jurisdiction, it was possible to reduce costs by 27%, which significantly increased the project’s ROI.
The role of banks’ digital ecosystems and Open Banking is becoming increasingly significant: on the one hand, banks are forced to open access to their APIs; on the other hand, they can regulate the price and terms of this access through fees, creating additional barriers for fintech competitors.
Regulation of fees and fintech competition in Europe and Asia
Regulatory approaches to bank fees in the EU and Asia differ significantly, which affects the strategy for fintech companies entering international markets.
Impact of regulatory measures on fintech development
The EU has a comprehensive system for regulating fees (in particular, EU Regulation 2015/751 on interchange fees), which limits maximum rates and provides transparency for market participants. This contributes to the development of competition between banks and fintech, but at the same time requires strict compliance with AML and KYC procedures.
In Asia regulation is more fragmented: Singapore and Hong Kong focus on digital identification and innovative payment systems, while India and Indonesia maintain high fees and complex procedures for foreign participants. The solution developed by COREDO for a client from Southeast Asia included structuring the business through a Singaporean legal entity to gain access to more favorable rates and simplified KYC procedures.
Measures to counter shadow business (AML/KYC) in the EU and Asia are being tightened, which, on the one hand, increases market trust, and on the other: increases costs for legal support and complace for fintech.
Let’s move on to an analysis of the legal requirements related to the registration of fintech companies and the structure of banking fees in the region’s key jurisdictions.
Legal aspects of fintech registration and banking fees
Proper registration of a legal entity in the EU or Asia directly affects access to banking services and service conditions. For example, in the Czech Republic and Estonia, fintech companies registered under local rules gain access to preferential rates and accelerated account opening procedures.
Legal risks when dealing with banks with high fees include the possibility of account blocks, tariff revisions without prior notice, and difficulties in refunding funds in disputed situations. COREDO’s practice has shown that a preliminary audit of service terms and detailed legal support help minimize these risks and ensure cost predictability.
Comprehensive legal support for fintech companies is a key tool for reducing risks, especially when entering new markets. COREDO’s experience in company registration and licensing in the EU, Singapore and Dubai allows structuring the business taking into account all regulatory and tariff features.
The impact of banking fees on innovation and inclusion
High banking fees can hold back the development of innovative financial products, limit access to banking services for small and medium-sized businesses, and reduce financial inclusion.
For example, interchange fees and merchant fees directly affect the cost of BNPL services and credit products for end users. In regions with high fees (for example, in some countries in Africa and Southeast Asia), fintech companies are forced either to raise service prices or to reduce the range of innovative solutions.
The impact of fees on the accessibility of financial services is especially noticeable for small and medium-sized businesses: for many companies, banking fees become a barrier to switching to cashless payments and integrating with banks’ digital ecosystems.
The COREDO team supported the launch of a payment platform for the SME segment in Slovakia, where the introduction of an innovative fee pricing model (a flexible rate depending on turnover and transaction type) not only reduced client costs but also increased market share by attracting new users.
Thus, choosing the optimal fee model becomes a key factor for improving competitiveness and long-term growth of fintech companies; more on this in the following recommendations for executives.
Practical advice for fintech leaders
COREDO’s experience shows that a successful strategy for managing banking fees is built on three key elements: optimizing the legal structure, competent risk management and building partnership relations with banks and payment systems.
- Methods to reduce banking fees: analysis of tariff plans in different jurisdictions, structuring the business through regions with more lenient regulation (for example, Singapore, Cyprus, Estonia), using multi-bank solutions and alternative payment gateways.
- Risk management: regular audits of service terms, implementation of automated transaction monitoring systems, ensuring compliance with AML and KYC requirements, legal review of all contracts with banks and payment providers.
- Choosing reliable partners: Registration of legal entities taking into account the specifics of the chosen jurisdiction, obtaining necessary financial licenses (EMI, PSP, crypto, BNPL), comprehensive support at all stages – from due diligence to integration with banks’ digital ecosystems.
- Partnership with banks: leveraging API-banking capabilities, participating in pilot programs of digital ecosystems, joint development of innovative products and services.
In one of COREDO’s cases, optimizing the structure of an international fintech holding reduced total fees by 19% by moving part of the operations to jurisdictions with more transparent regulation and favorable rates for B2B clients.
Key takeaways and practical steps
Banking fees: they are not just costs, but a strategic factor that affects the competitiveness, innovativeness and resilience of fintech companies. Their role in limiting fintech competition is especially noticeable in regions with a high concentration of traditional banks and underdeveloped regulation.
For entrepreneurs and business leaders, the key steps are:
- In-depth analysis of tariff and regulatory conditions in selected regions.
- Choosing the optimal jurisdiction for registration and licensing of the business.
- Comprehensive legal support and continuous audit of contracts with banks and payment systems.
- Strategic partnership with banks and integration into digital ecosystems.
COREDO’s practice confirms: only a systematic approach and professional support at all stages make it possible to minimize the impact of banking fees, increase the ROI of fintech projects and ensure sustainable growth even in conditions of fierce competition and rapidly changing regulation.
Fees by region: comparison of EU, Asia, Africa
| Region | Main types of fees | Impact on fintech competition | Regulatory features |
|---|---|---|---|
| EU | Interchange, merchant fees | High fees are holding back BNPL growth | Strict AML/KYC, BNPL regulation |
| Asia | Varied payment fees | Rapid fintech growth, but with regional barriers | Evolving regulation, emphasis on digital identification |
| Africa | Transaction and servicing fees | Limited access to banking services | Focus on financial inclusion, less developed regulation |
If you are looking for a strategic partner for registration, licensing and comprehensive support of a fintech business in the EU, Asia or the CIS, the COREDO team is ready to offer solutions proven in practice and adapted to the specifics of your project.