The Hamburg-based fintech Deposit Solutions, a pioneer of open banking and leading international platform for savings deposits, announced the closure of a new round of funding, according to a press release on August 15, 2018. The round was led by the London based private equity firm Vitruvian Partner joined by Sweden’s Kinnevik and existing shareholders including Deposit Solutions‘ first institutional shareholder e.ventures in a transaction worth a total of USD 100 million. The deal brings the value of Deposit Solutions and its two brands Zinspilot and Savedoto to over USD 500 million. This is the second-highest round of financing ever for a German fintech, according to the Hamburg industrial website Finanz-Szene.de.
Pioneer of open banking
Dr. Tim Sievers, CEO and founder of Deposit Solutions, said: “We are delighted to welcome Vitruvian and Kinnevik as new shareholders. They are experts in supporting high-growth companies, which makes them ideal partners for us. Their deep industry expertise and financial firepower will help us achieve our mission of making open banking the new standard for the global USD 50 trillion market for savings deposits.”
Successful B2B and B2C offers
Deposit Solutions was able to accelerate its growth in 2017. At present, the company has more than 70 banks from 16 countries connected to its open banking platform, including well-known financial institutions such as Deutsche Bank or Fidelity’s subsidiary FFB. Deposit-seeking banks can access over 30 million savers via the platform, who can invest money directly with third-party banks via an existing banking relationship without opening new accounts. Deposit Solutions’ owns the B2C distribution channels Zinspilot and Savedo, which market selected deposit products from partner banks to savers. Both distribution channels are also growing exponentially. The volume of deposits brokered in direct business has more than doubled in the past nine months and now comes to over EUR 9 billion. During the same period, the number of customers has risen to over 155,000. Founded in 2011 by Sievers, the financial start-up now employs 250 people and has offices in Hamburg, Berlin, London and Zurich.
Hamburg among Europe’s top 10 financial centres
A recent study by the China Development Institute (CDI) and London-based Z/Yen Partners shows that Hamburg offers an excellent breeding ground for fintechs: The Global Financial Centres Index now counts Hamburg among the top 10 players in Western Europe and 29th out of 96 global cities. Hamburg was first included in the renowned index in autumn 2017. The city has climbed a remarkable 38 places in the spring 2018 evaluation and ranks alongside Frankfurt and Munich.
Successful financial start-ups, fintech hub and Fintech Week
The Elbe metropolis is currently home to more than 40 innovative financial technology companies, which are revolutionizing the banking business with digital solutions. In addition to Deposit Solutions, the scoring company Kreditech, the crowd investment platform Exporo and the loan comparison portal Finanzcheck.de are among the major, international players in the Hamburg fintech landscape. The Hamburg-based consumer credit platform recently completed one of the largest German fintech exits. In addition, the first Fintech Hub is currently being built in HafenCity.
From October 15-20, 2018, Hamburg will once again become a financial hotspot and venue of the third Fintech Week, hosted by the newsletter finletter and the Hamburg’s co-working space betahaus. Considered one of the largest events of this kind in Germany, it brings together the established financial world with innovative fintechs. The first one-day conference on the the future of finance will also be held during the week.
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