What is business model development for an AEMI?

Business model development for an AEMI involves designing the structure of services, revenue streams, operational costs, regulatory requirements, risk and governance, and technology/infrastructure so that the institution is sustainable and compliant.

How do regulatory constraints affect AEMI business models?

Regulatory constraints such as licensing requirements, capital and financial requirements, safeguarding, AML/CTF obligations, customer protection, and governance rules can significantly affect costs, time to market, and the structure of revenue.

What should be included in revenue & cost modelling?

Elements typically include transaction and fee income projections, operating expenses (staff, systems, compliance, infrastructure), regulatory and licensing costs, risk mitigation expenses, customer service, and scalability assumptions.

Why is operational infrastructure planning important for AEMIs?

Because even authorised electronic money institutions require solid technology and compliance infrastructure (for security, risk management, transaction processing, data protection), which impacts cost, compliance and risk.

What is risk governance and how is it integrated?

Risk governance includes setting up oversight mechanisms (board, committees, senior management), defining risk appetite, establishing reporting lines, internal controls, and embedding these methods in everyday operations and decision making.

How long does business model development typically take for an AEMI?

This depends on the complexity of operations, number of services, regulatory jurisdictions, readiness of existing documentation and systems. It might take several weeks to a few months.

AEMI Business Model Development | Electronic Money Strategy

Business Model Development

At ABM Global, we help Authorised Electronic Money Institutions (AEMIs) design and implement business models that are fully compliant, scalable, and aligned with both commercial objectives and regulatory expectations. Our approach ensures that your institution can operate efficiently across domestic and cross-border markets while maintaining robust risk management and compliance standards.

Defining Operational Scope

We work closely with your team to identify the full range of payment services your AEMI will offer, including e-money issuance, payment processing, card issuance, and remittance services. Our guidance ensures that service offerings are fully aligned with FCA authorisation permissions, prudential requirements, and operational compliance standards, while clearly mapping any limitations or thresholds.

Customer Journey & Onboarding Framework

ABM designs seamless and risk-aligned customer onboarding journeys that integrate KYC/AML checks, identity verification, and customer due diligence processes. We balance regulatory obligations with user experience, ensuring efficient onboarding for both retail and corporate clients without compromising compliance or introducing operational risk.

Safeguarding Architecture

We help establish robust safeguarding mechanisms to protect client funds in accordance with EMRs. This includes guidance on dedicated safeguarding accounts, reconciliation processes, liquidity management, and documentation procedures to maintain regulatory compliance and enhance client trust.

Governance & Organisational Structure

Our team assists in defining clear roles and responsibilities for directors, senior management, and key function holders. We implement internal governance processes such as board oversight, risk committees, and reporting lines, ensuring strong accountability, operational transparency, and alignment with FCA and EMR expectations.

Risk & Compliance Framework

ABM develops comprehensive AML/CFT and financial crime prevention policies tailored to the AEMI’s risk profile. We integrate transaction monitoring systems, suspicious activity reporting frameworks, and compliance testing procedures to ensure the business operates in a secure, risk-aware environment.

Capital & Financial Planning

We support the demonstration of initial and ongoing capital adequacy requirements, including liquidity planning, stress testing, and financial projections. Our advisory ensures that your capital structure and operational plans meet FCA prudential standards and support sustainable growth.

Technology & IT Infrastructure

We evaluate payment systems, security frameworks, and data protection measures to ensure operational resilience and compliance. This includes guidance on cybersecurity, IT risk management, incident response planning, and scalable infrastructure for growing transaction volumes and international operations.

Regulatory Documentation & FCA Readiness

ABM prepares comprehensive documentation required for FCA authorisation, including business plans, safeguarding policies, AML frameworks, governance structures, and operational manuals. We ensure that all submissions, attestations, and regulatory filings are accurate, well-structured, and aligned with FCA standards.

Scalability & International Expansion

We design the business model to accommodate future growth, cross-border operations, and potential expansion into new markets. ABM embeds scalability into processes, systems, and governance, ensuring the AEMI can adapt to evolving regulations, new product offerings, and increased operational complexity without compromising compliance or efficiency.