DNB streamlines fintech licensing, eyes AI and digital risks

De Nederlandsche Bank (DNB) has significantly accelerated and streamlined its fintech licensing process, halving the timeline compared to 2025.

This was achieved by introducing fixed internal review and decision cycles, with DNB departments aligned upfront and operating against predefined response times.

Efficiency gains also resulted from using AI to analyze documents and check licensing file completeness.

DNB further reduced unnecessary duplication of information requests by systematically reusing existing data, particularly for license extensions, which also shortens decision timelines.

Licensing processes, previously involving ten to twelve iterative rounds, are now typically limited to a maximum of three.

This requires applicants to submit higher quality files from the outset for faster progress.

DNB has also reinforced the InnovationHub and established an Innovation Table to identify and remove regulatory obstacles.

The central bank emphasizes that supervisory standards and legal requirements remain unchanged, ensuring financial services remain safe and sound.

The DNB official highlighted the European financial sector's heavy dependence on third-party IT service providers, especially cloud services, many of which are outside the EU.

This creates significant concentration and geopolitical risks, despite boosting efficiency.

Switching providers is costly, but fintechs, unencumbered by legacy IT, can act as catalysts by building flexibility and alternative solutions, thereby enhancing digital resilience across the sector.

DNB is also preparing its refined supervisory approach for emerging European AI developments.

In line with the European AI Act, the focus will be on ensuring AI applications are safe, transparent, and resilient, while avoiding unnecessary friction for well-governed firms.