How to Check If a Bank or Neobank Is Safe (Takes 5 Minutes)
Before you deposit money with any bank, neobank, or fintech platform, you should verify that it is genuinely regulated and that your deposits are protected. This takes about five minutes and can save you from losing money to an unregulated or fraudulent platform. We use this exact checklist when evaluating every platform on BestAiGlobalBank.
Why This Matters
The rise of digital banking has made it easy to open accounts with platforms you have never heard of. Many are legitimate and well-regulated. But some operate in regulatory grey areas, and a small number are outright scams disguised as sleek fintech apps. The difference between a safe platform and a risky one is almost always visible in public records — you just need to know where to look.
Step 1 — Find the Regulatory Claim on the Website
Scroll to the bottom of the platform's website. Every regulated financial institution is required to display its regulatory status, usually in the footer. Look for language like "Authorised and regulated by the Financial Conduct Authority" or "Licensed by the Monetary Authority of Singapore."
Note the exact name of the regulator and any licence or reference number mentioned.
What to look for:
The regulatory statement is almost always in the website footer, often in small grey text. If a platform does not mention any regulator on its website, that is a significant red flag. Regulated companies are proud to display their licences.
Step 2 — Note Which Regulator
Different regulators offer different levels of protection. Here are the major ones and what they cover:
Note that e-money licences (common among neobanks) are different from full banking licences. E-money institutions must safeguard your funds but they are not covered by deposit guarantee schemes in most jurisdictions.
Step 3 — Go to the Regulator's Public Register
Every major regulator maintains a free, searchable public register. Here are direct links to the most commonly used ones:
Step 4 — Search by Company Name or Licence Number
Enter the company's legal name or the licence number from their website into the register's search function. The legal name may differ from the brand name — for example, "Revolut Ltd" rather than just "Revolut."
If the platform provided a licence number on their website, search by that number for a more precise match.
What to look for:
The search result should show the company's legal name, registered address, and the specific permissions or activities it is authorised to carry out. If no result appears, try variations of the company name or check whether the platform is actually registered under a parent company.
Step 5 — Confirm the Licence Status Is Active
The register will show whether the licence is active, suspended, or revoked. Only deposit money with platforms whose licence status is currently active. A suspended or revoked licence means the regulator has taken action against the company.
Also check the date the licence was granted. Platforms that have held their licence for several years have a longer track record than newly licensed entities.
Step 6 — Check the Deposit Protection Type
Confirm what type of licence the platform holds and whether your deposits are covered by a deposit guarantee scheme:
Understanding this distinction is critical. Many popular neobanks operate under e-money licences, which means your money is safeguarded but not insured in the way a traditional bank deposit would be.
Step 7 — Search for Fines or Sanctions
As a final check, search Google for the company name followed by "fine," "sanction," or "enforcement action." Regulators publish enforcement actions publicly, and financial news outlets report on them. A single minor fine years ago may not be concerning, but a pattern of regulatory issues is a warning sign.
Also check whether the platform has been the subject of any recent negative press regarding service outages, frozen accounts, or customer complaints.
Summary
Checking whether a bank or neobank is safe takes about five minutes and involves seven simple steps: find the regulatory claim, identify the regulator, search the public register, confirm the licence is active, understand the deposit protection type, and search for enforcement history. Do this once before you open any new account and you will dramatically reduce your risk of losing money to an unsafe platform.
Reviewed by Thomas & Oyvind — [NorwegianSpark](/about) | Last updated April 2026
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Reviewed by Thomas & Øyvind — NorwegianSpark