EMI
Electronic Money Institution
- What it is
- A licensed electronic money institution — not a bank
- What it gives
- An account with an IBAN, cards, fast transfers, multiple currencies
- What it does not do
- It does not take deposits or make loans
- Protection of money
- Client funds are held separately, but the deposit guarantee does not apply
- The main nuance
- Some state programmes and notaries do not accept payments from EMIs
In plain words
An EMI (electronic money institution) is a licensed electronic money organisation. Put simply: a service that looks like a bank — an account with an IBAN, a card, an app, transfers — but is not a bank. Its licence is different, and so are its rights and obligations.
What an EMI can do: open an account quickly and remotely, provide multiple currencies, inexpensive transfers and a convenient app. What an EMI does not do: it does not take deposits in the traditional sense and does not lend. It is obliged to keep clients’ money separate from its own — in safeguarded accounts at banks — but the state deposit guarantee does not extend to it.
For investment migration clients there is a practical nuance here. An EMI covers everyday settlements and business payments very well, but for large transactions — paying a programme contribution, buying property, settling with a notary — the receiving party often requires the payment to come from a bank. That is why we recommend an EMI as a convenient additional tool, not as a replacement for a bank account.
Where an EMI is genuinely convenient
EMI and bank: the difference
- An account with an IBAN
- Cards and an app
- Multiple currencies
- Interest-bearing deposits
- Loans and mortgages
- Deposit insurance
- Separately from its own funds
- In accounts at banks
- Under the regulator’s supervision
- State programmes
- Notaries and developers
- Large transactions
How to choose and open an EMI account
- 01Check the licence and jurisdiction
- 02Confirm the limits and prohibited transactions
- 03Pass remote KYC
- 04Receive an IBAN and a card
- 05Use it for your purposes
What you need to know
- An EMI is not a bank; its licence is different
- Client money is held separately
- The deposit guarantee does not apply
- There are no loans or deposits
- Large payments are often expected to come from a bank
Common mistakes
- Treating an EMI as a full bank
- Keeping all your capital in an EMI
- Planning to pay the programme from an EMI account
- Not checking the licence and the supervisory authority
- Ignoring the limits and the list of prohibited transactions
What this means for a BRIDGES client
We help allocate money across channels: a bank for capital and large programme payments, an EMI for everyday settlements and multiple currencies. And we always check in advance which payment the receiving party will accept, so that payment does not derail the timeline.
Frequently asked questions
01 /Is an EMI a bank?
No. It is a licensed electronic money institution. It can issue an IBAN and a card, but it does not take deposits, does not lend and does not participate in the deposit insurance scheme.
02 /Is my money protected in an EMI?
Client funds are held separately from the institution’s own money, usually in accounts at banks. But the state deposit guarantee does not extend to them.
03 /Can the programme be paid from an EMI account?
Not always. Many state programmes, notaries and developers accept payment only from the applicant’s bank account. This is confirmed in advance.
04 /How does an EMI differ from a payment institution?
An EMI may issue electronic money and hold its balance in the client’s account; a payment institution mainly carries out payments. The licences are different.
05 /Why use an EMI then?
For convenience: quick remote opening, multiple currencies, inexpensive transfers, a good app. As an additional channel it is very useful.
06 /How do you check that an EMI is reliable?
Look at its licence and jurisdiction, supervisory authority, time in operation, the conditions for holding client funds and its reputation. Regulators’ registers are public.
See also
Read next
This material has undergone editorial review by BRIDGES.
Choosing where to keep money?
We will put together a bank + EMI combination for your purposes and check what you can use to pay for the programme.