The German Banking Act – Pitfall and Hurdle for Start-Ups

The BaFin summarises the legal position succinctly: anyone wishing to conduct banking business in Germany requires prior authorisation.

For start-ups, the German Banking Act (KWG) can become a trap. Many innovative business models touch upon – often unintentionally – the scope of application of the KWG. We explain the most important provisions and the typical pitfalls.