What is business model development for SPIs?

Business model development for SPIs involves defining the institution’s services, revenue streams, cost structure, regulatory obligations, operations, and governance to build a strategy that is both compliant and sustainable.

How do regulatory requirements affect our business model?

Regulatory requirements such as licensing, AML/CTF rules, reporting, customer due diligence, and capital requirements will influence service offerings, pricing, operational cost, and risk controls.

What financial projections are needed?

Financial projections should include expected revenues, operating costs, compliance and licensing costs, staffing, technology infrastructure, and scenario planning for regulatory or market changes.

Do you help define service offerings and pricing models?

Yes. We assist SPIs in defining which payment services to offer, setting pricing strategies, understanding cost drivers, and ensuring the model is viable under regulatory constraints.

How important is governance and risk framework in the business model?

Governance, risk and controls are critical parts: regulators expect SPIs to have clear oversight, defined responsibilities, internal controls and risk mitigation strategies, all of which must be built into the model from the start.

What is involved in operational infrastructure planning?

Operational infrastructure planning covers technology systems, personnel, compliance tools, processes for transaction monitoring, reporting, data management, and ensuring these align with regulatory demands.

Can you help with cost & risk trade-offs in the model?

Yes. A good business model considers trade-offs between compliance cost, risk mitigation, market competitiveness, and scalability, to ensure the SPI can operate profitably while meeting regulatory obligations.

How do we begin working on business model development with ABM Global Compliance?

You can contact us via phone or email. We start with a workshop or consultation to understand your business idea, regulatory environment, cost base, and then develop a model and roadmap tailored to your needs.

Business Model Development for SPIs | ABM Global Compliance

Business Model Development

At ABM Global, we believe that a successful Small Payment Institution (SPI) is built on more than just compliance—it requires a business model that balances commercial objectives with regulatory obligations. Our team of experts works closely with you to design, refine, and future-proof your business model, ensuring it is both market-ready and FCA-compliant.

Our support includes

Operational Scope Definition

We assess your vision and objectives to determine which payment services you can provide within the SPI framework. Whether it’s money remittance, payment initiation, or account information services, we help you define a clear operational scope that maximizes opportunities while remaining within FCA’s regulatory thresholds.

Client Base Strategy

Targeting the right customers is crucial for compliance and business growth. We assist in identifying and segmenting your client base—retail, SME, or niche markets—while considering risk profiles, due diligence requirements, and potential regulatory scrutiny. This ensures your business captures the right opportunities without overexposing itself to compliance risks.

Threshold Alignment & Financial Planning

SPIs are subject to strict transaction volume and turnover caps. We help you model your projected transaction flows, safeguarding requirements, and capital adequacy to ensure you operate within FCA-defined thresholds. Our financial planning support ensures your business remains compliant today while being scalable for tomorrow.

Regulatory Positioning & Governance

To gain FCA approval and long-term credibility, your business model must reflect strong governance, transparency, and risk management. We help structure your governance framework, reporting mechanisms, and compliance policies so regulators can clearly see the sustainability and integrity of your operations.