Why EMIs are the safer choice?

30 March, 2023

Why EMIs are the safer choice?

In the current light of events with Credit Suisse and other banks, I think it’s worth reminding you why EMIs (such as GURU PAY) are key players in providing a SAFER option for your money than even some…SWISS BANKS. Sounds too good to be true? Well, it’s true after all and here is why:

In recent years, Electronic Money Institutions (EMIs) have gained prominence as a reliable and secure alternative to traditional banks for storing and managing money. In Lithuania, EMIs have a unique advantage that further enhances their safety – they are required to hold their clients’ money in accounts at the central bank. This post explores why storing money in Lithuanian EMIs may be a safer option compared to traditional banks.

Safeguarded Funds

Lithuanian EMIs (not all, though, but GURU PAY does) hold clients’ funds in safeguarded accounts at the central bank, which ensures that the funds are kept separate from the institution’s own operating accounts. This means that if an EMI faces financial difficulties or becomes insolvent, client funds are not exposed to the institution’s liabilities and remain protected.

No Credit Creation

Traditional banks operate on a fractional reserve system, lending out more money than they have in deposits, which inherently carries a higher risk of financial instability. In contrast, EMIs do not engage in credit creation and can only issue electronic money equivalent to the funds received from their customers. This limited exposure to credit risk makes EMIs a safer option for storing money.

Strict Regulatory Framework

EMIs in Lithuania operate under the supervision of the Bank of Lithuania, adhering to stringent regulations that ensure the safety and stability of the financial ecosystem. These regulations include maintaining adequate capital, implementing robust risk management practices, and meeting strict anti-money laundering (AML) and counter-terrorist financing (CTF) requirements.

Enhanced Transparency and Oversight

The Bank of Lithuania closely monitors the activities of EMIs, providing an additional layer of oversight and ensuring that these institutions comply with regulatory standards. Furthermore, EMIs are required to submit regular reports and undergo periodic audits, enhancing transparency and enabling the central bank to promptly address any potential issues.

Technological Advancements

EMIs are known for their innovative and user-friendly digital platforms, which facilitate secure and efficient money management. By leveraging advanced encryption technologies and multi-factor authentication, EMIs can offer improved protection against unauthorized access and cyber threats compared to some traditional banks.


With safeguarded accounts at the central bank, no credit creation, strict regulatory oversight, and advanced security measures, EMIs in Lithuania provide a secure environment for managing and safeguarding funds.