Deposit Solutions raises $100 million to speed open banking for retail deposits
Venture funders establish a $500 million valuation for German fintech, betting that rapid growth in open banking is now inevitable and will transform the financial landscape.
Deposit Solutions, the German fintech, has expanded rapidly in its attempt to bring open banking to the heart of the European financial system by creating new platforms for retail depositors to spread their savings among multiple banks from just a single account.
When Euromoney last spoke to the company in April, it had transmitted €6 billion of deposits between 100,000 customers – mostly in Germany, Austria and the Netherlands – using its two proprietary business-to-consumer (B2C) channels, Zinspilot and Savedo.
It had also attracted 50 banks across 16 European countries to use its business-to-business (B2B) platform, which allows so-called product banks – seeking to raise deposit funding without the cost of a conventional branch network – to offer their insured deposits to clients of so-called customer banks, which might be awash with deposit funding and be happy to offer their clients an easy way to shift some savings to other banks without setting up new accounts.
These banks include Deutsche Bank, FFB – the German subsidiary of Fidelity – and MünchenerHyp in Germany, and Atom Bank and Close Brothers in the UK.