Deutsche Bank bought a five percent stake in German Financial technology start-up Deposit Solutions, valuing the firm at north of one billion euros ($1.1. billion).
The deal makes Deposit Solutions Germany’s second-largest fintech unicorn — a private business that’s value $1 billion or additional — in line with in public accessible knowledge. Deutsche didn’t disclose what quantity cash it had invested into the firm.
It comes simply months when the bank declared an enormous restructuring program that may see eighteen, thousand folks set off, because it scales back on its investment banking operations and appears to boost profitableness. It additionally follows the collapse of the lender’s merger talks with domestic rival Commerzbank.
Deposit Solutions’ code lets third-party lenders that provide savings product plug into retail banks’ platforms, a part of a broader trend within the monetary services business referred to as open banking. The firm says the advantage of this is often that it lets retail banks that don’t sell savings product supply them to customers, usually at higher interest rates.
Apart from Deutsche, the firm counts Peter Thiel’s venture fund Valar Ventures and personal equity firm Vitruvian Partners as investors. Deposit Solutions aforesaid Deutsche has been one among the company’s customers since 2017, whereas alternative purchasers embrace Germany’s MunchenerHyp, British bank shut Brothers and therefore the fintech firm Atom.
The deal signals growing interest from banking giants within the fintech house, with alternative lenders like HSBC and syndicalist Sachs additionally tilling money into similar suppliers. It might even be seen as taking advantage of open banking rules from the EU, that authorize third parties to access bank customers’ knowledge and initiate payments on their behalf.