To ensure your money is safe and protected, we comply with industry regulations and aim to be as transparent as possible.
When it comes to your data, we’re committed to full transparency and you can read our privacy policy here.
The rest of this article explains how your money is protected in practice.
Safeguarding your money
wamo isn't a bank, it’s an Electronic Money Institution (EMI). As an EMI, we are legally required to hold 100% of your funds at all times in segregated accounts at a bank, where they cannot be used for any other purpose.
As such, lending out or investing any of our customers’ funds is something we are not allowed to do and will never do, so you can be sure that your money is always secure in a safeguarded account.
Safeguarding is done in accordance with requirements by the Finnish Payment Institution Act (899/2011) and Article 10 of PSD2. Money security beyond traditional banking.
Money security beyond traditional banking
While we are not a traditional bank, strict safeguarding practices are in place to protect your funds.
How traditional banks work
Traditional credit institutions or banks protect your money through theDeposit Guarantee Scheme (DGS) in Europe. In the event of a traditional bank becoming insolvent, these schemes protect your funds up to a limited amount, meaning that eligible customers will be paid back up to the maximum compensation amount of €100,000 under the DGS.
How we protect your money (Safeguarding)
Because we work with regulated electronic money institutions, your funds are protected through a process called "Safeguarding."
In the unlikely event that our banking partner or wamo stops operations:
100% Protection: All customer funds are held in a designated safeguarding account. This money is segregated from our own company funds.
Creditor Protection: Because your funds are segregated, creditors cannot make a claim on your money to pay off our debts.
Total Coverage: Unlike the capped amounts in traditional banks, the safeguarding account holds enough to cover all customer balances at all times.
Insolvency Claims
If our banking partner is unable to distribute your funds directly, you will receive your money back minus any administrative costs associated with the insolvency process (e.g., liquidator fees). Please note that this pay-out process may take longer than standard DGS claims.
We hope that after reading this article, you now have a better understanding of how your money is protected in your wamo account. If you have any questions about this, please reach our support team via support@wamo.io or via our live chat - we're here 7 days a week.