Deposit Solutions - Fintech Europe

Deposit Solutions

Deposit Solutions runs a public banking platform that connects banks and other financial services firms in the deposit business. Banks seeking financing can operate deposits via the platform without having to build and operate their retail infrastructure.

Banks and other platforms that interact with savers can offer attractive third-party deposit products while maintaining the relationship with the customer. And savers can choose from a wider selection of savings products, without the hassle of opening multiple accounts. With the solution, every participating party is subjected to winning.

Deposit Solutions, in recent times, have crossed the 10-billion-euro mark placed through its platform and announces in the process the extension of its activities in the United States and other parts of Europe.

With the open banking system, the financial institutions put the customer at the center of their activities. This may also include offering third-party products to meet the financial needs of customers. As a transnational Open Banking platform, Deposit Solutions provides the infrastructure to initiate this option in the deposit business.

Deposit solution positions itself between the banks

Deposit Solutions also operates the only viable B2B solution that allows banks to fully integrate their offers as white labels and allows them to offer third-party deposit products to their customers exclusively through the existing relationship with the customer.

For banks that do not open up in the deposit business, there are only a few options when it comes to cushioning the effects of negative interest rates on their earnings. Of course, they can increase rates, try to get rid of customer deposits or pass negative interest rates to their customers. But if banks position themselves as platforms and connect with other banks in the deposit business, they can transfer excess liquidity to other institutions in a comfortable way with the balance and avoid passing the load to the customer.

Over the years, Deposit Solutions has been focused exclusively on Europe so far by connecting more than 80 banks from 16 different countries, including the United Kingdom and Switzerland. Since its inception in 2011, the Hamburg-based company has continually evolved from having less than 250 employees, has just opened a branch in New York headed by Philipp von Girsewald, former director of Deutsche Bank. The new entity already has five employees and is expected to double its workforce as soon as possible.

This deployment abroad is financed by the fundraising of 100 million dollars (88 million euros) carried out last August by Deposit Solutions with the investment funds Vitruvian Partners and Kinnevik and existing shareholders. The company was valued at $500 million as part of this transaction.

If the company does not want to disclose quantified targets for its activities across the Atlantic, it hopes to do as well as in Europe where it has 170,000 customers who have opened accounts on its Zinspilot and Savedo platforms. These allow savers to grow their money by placing it in different European banking establishments. Deposit Solutions also gives banks the possibility to connect. Certain banks can thus offer their customers deposit solutions with third-party banking institutions via the fintech platform.