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PayRay is preparing to become a bank

22 Sep 2020PayRay

PayRay, a Lithuanian financial sector company that provides business services, is preparing to expand its business following the receipt of a bank licence earlier this month. When PayRay becomes a bank, its Supervisory Board members will be professionals with many years of experience in banking and in other sectors: Gintautas Galvanauskas, Kęstutis Šliužas and Tomas Andrejauskas.

At the suggestion of the Bank of Lithuania, the European Central Bank issued PayRay a licence at the beginning of December, which allows the company to lend and accept deposits. This decision by the authorities represents a new stage for the company, which currently provides factoring services and microcredit for small and medium-sized enterprises.

“By actively communicating with our customers, looking at their needs and analysing the market situation, we have found a niche for a new bank. For example, according to a recent survey of the managers of small and medium-sized enterprises in Lithuania, as many as 44 percent of them believe that a new bank would increase competition for customers among the market participants. Another 28 percent of them believe that a new bank would mean more borrowing for the enterprises operating in the country. We will strive to meet these particular expectations,” said Renato La Fianza, CEO of PayRay.

Deposits will be accepted in the mid-2020s

PayRay will become a bank that will continue to focus on short-term working capital financing solutions for small and medium-sized enterprises. The company’s portfolio of services, which currently includes factoring and microcredit, will be supplemented by short-term loans to business customers. Deposits from natural persons will also be accepted online.

“Just over a tenth of business representatives say that the cost of borrowing is too high when it comes to the challenges they are facing when trying to borrow for the sake of their working capital. And just as many of them say that the decisions made by financial institutions are too slow. We will strive to create more competition through our activities. Expanding our business into deposit collections will also help make it easier for enterprises to seek competitive financing for their activities, and will help people to employ their savings,” said La Fianza.

The company’s team of specialists is currently working on streamlining all the processes needed for a broader business scope. The deposit service (in euros, from 6 months) is expected to be offered in the mid-2020s.

According to La Fianza, PayRay also envisions a geographical expansion of its operations.

Supervisory Board includes known professionals

PayRay, which is expecting to develop both its service portfolio and the geography of its operations, has drawn on a team of professionals with many years of experience in the financial industry. This team will be further strengthened by the formation of Supervisory Board that will include some well-known banking and management experts in Lithuania: Gintautas Galvanauskas, former Manager of Danske Bank in Lithuania; Kęstutis Šliužas, former Manager of Telia Lietuva; and Tomas Andrejauskas, an investor and former Manager of the Corporate Banking and Markets at Swedbank in Lithuania.

PayRay started its operations in Lithuania in June 2018 and was then known as the Vilnius Factoring Company. Since its inception, PayRay has funded accounts worth EUR 165 million. The company has also expanded its factoring portfolio to EUR 28 million. 150 companies have used the services provided by the company.

The company currently employs more than 20 experienced financial professionals.

PayRay’s authorised capital is EUR 20 million. 

A representative survey of Lithuanian small and medium-sized enterprises was conducted by Vilmorus. 403 company executives / owners or financiers were interviewed by telephone during the course.

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