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FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.
Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time.
As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.
Introduction
Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services
At the moment, loan-giving, factoring, and brokerage are services that can be provided by banks and financial companies in accordance with the Law on Banks, the Law on Financial Companies, and the Law on Securities. In 2019, the Government prepared a Draft Law which is expected to be adopted in the course of 2022. According to a feasibility study conducted by the NBRM, there is a unanimous agreement that there is a need for FinTech in North Macedonia. According to the survey conducted in scope of the feasibility study, the financial sector in North Macedonia needs FinTech due to (i) modernisation of the financial system; (ii) more benefits for the end users; (iii) alignment with international best practice; (iv) operational efficiency and reduced costs; (v) more financial inclusion, accessibility, and empowerment of businesses; and (vi) more choice for consumers and increased competition resulting in better services. The NBRM states that the financial service sector is ready for a FinTech transformation. Recently, the European Fund for Southeast Europe states that NBRM is a leader in the Western Balkans region in activities to support the development of the FinTech sector as North Macedonia is the only country in the region whose central bank has mapped the FinTech ecosystem. North Macedonia is the only country in which the central bank has already initiated the preparation of a specific national strategy to support the FinTech sector.
Legal affairs
Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above
The abovementioned services are not feasible in North Macedonia, given that there is no regulatory framework. Traditional services such as loan-giving and factoring can be provided by banks and financial companies in accordance with the Law on Banks and the Law on Financial Companies, while brokerage and trading can be provided by a legal person who has obtained an approval by the SEC, in accordance with the Law on Securities, usually a brokerage house or a bank. A specific license is not required for entities such as banks and/or financial companies to offer the abovementioned services – i.e. they are able to provide such services once they receive the approval for operation from NBRM and the MoF.
Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area
A due consideration should be given to the Law on Consumer Protection and the Law on Consumer Protection in Consumer Loan Agreements as they provide protection for the consumers of the abovementioned services. As such, Law on Consumer Protection prohibits provisions consumer contracts whereas the provision allows the trader to change the price depending on the elements which exclusively depend on the will of the trader.
Additionally, the Law on Consumer Protection in Consumer Loan Agreements provides that the standard information for a loa