The process to start a new bank begins with the business plan and financial model. Next, regulators will place great emphasis on the team you have assembled, the quality of the documents provided, and the amount of capital available.
If your application is approved, you generally receive a Permit to Organize. This allows you to form a company with the word “bank” in the name and begin building out your operations (hiring employees, setting up core software systems, etc.).
Then, once you are ready to open your doors to the public, you ask regulators to review your operations and systems.
If you pass that audit, you receive your Permit to Operate. Only then may you begin conducting banking business.
In most cases, the time to receive a Permit to Organize is three to four months. Then, clients usually spend four to six months building out their operation. Finally, you might wait two months for your Permit to Operate.
We can source and negotiate the purchase of an existing bank. This can be completed in 30 days, assuming you have a solid business plan ready. The usual time to launch a new bank is 7 to 14 months depending on the jurisdiction.
The average cost for an existing bank is $3.5 million to $5 million, with the highest being $10 million. This is the amount net to the seller and does not include capital that needs to be replaced.