Prominent venture capital firms just announced they have invested €15 million in European fintech company Deposit Solutions, a fast growing fintech innovator operating in the €9 trillion market for retail deposits in Europe. The list of investors includes PayPal co-founder and Facebook’s first outside investor, Peter Thiel. FinLab, US investor Greycroft Partners, the global growth fund of e.ventures as well as Valar Ventures are also investors of the Hamburg-based startup.
This is the second funding round for Deposit Solutions within a year, following last year´s investment of €6.5 million. Since then the valuation of the company more than quadrupled. The current funding round increases the valuation of Deposit Solutions to €110 million.
The fresh capital will be used to further develop the proprietary technology platform and continue Deposit Solutions´ international expansion, having already recently expanded from Germany to the UK and Switzerland. Deposit Solutions also plans to increase the number of employees at its UK HQ in the City of London and is expected to launch its retail platform in the UK in 2017.
Deposit Solutions operates the first open architecture platform for retail savings deposits in Europe. Its proprietary technology allows banks seeking retail funding to list their savings offers on an open architecture platform. Other banks on the platform can market those offers directly to their own clients who can access them without having to open a new account at another bank. In addition, Deposit Solutions operates its own retail brand ZINSPILOT in Germany which markets selected deposit offers of its partners directly to savers.
Dr. Tim Sievers, CEO and Founder of Deposit Solutions, said: “We are seeing substantial demand from banks looking to offer their clients attractive deposit products under the existing account relationship. As a result we have gained access to millions of clients and billions of deposit appetite in a very short amount of time. This in turn is very attractive to banks wanting to raise deposits through our platform. We are excited about the rapid growth of the business. The additional funding will allow us to scale even quicker“.
Deutsche Bank has recently announced the integration of Deposit Solutions’ platform into its retail offering for German savers. In addition, the stock market listed advisortech company JDC Group and Germany’s leading online broker flatex have already implemented the platform, and a number of additional partners are currently being on boarded, like for instance German Fidelity subsidiary FFB.
Deposit Solutions was founded in 2011. Its proprietary B2C offering, ZINSPILOT, was launched in 2014 and has rapidly become one of the leading channels in the deposit market. ZINSPILOT is already mediating more than € 100 million of retail deposits per month.