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Trade Republic secures full banking licence from ECB

Wednesday 6 December 2023 12:55 CET | News

Trade Republic has obtained a full banking licence from the European Central Bank in order to further expand its capabilities around investing and saving services.

Following this announcement, the full banking licence is set to enable Trade Republic to design and launch new products and solutions in order to optimise the financial stability of its customers in an easy and secure manner. In addition, the financial institution will continue to accelerate its development process across the region of Europe. 

The company will be given the possibility to provide all essential banking solutions and services, such as deposit and credit tools, while also meeting the strict requirements of the European Central Bank (ECB) and German BaFin, which were linked to the full banking licence agreement. 

 

Trade Republic has obtained a full banking licence from the European Central Bank in order to further expand its capabilities around investing and saving services.

More information on Trade Republic’s full banking licence

According to the information published in the press release, the new products enabled Trade Republic to expand its offerings, as well as to significantly reach market share in the region of Germany and around the world in 2023. By obtaining the banking licence, this process will be accelerated, while the focus will remain on providing easy, fast, and affordable accumulation of wealth for its suite of clients. 

At the same time, Trade Republic will focus on expanding its corporate governance by forming an experienced audit committee. The committee is currently pending for approval from BaFin, with the plan to be composed of multiple important board members and officials. 

Trade Republic’s past collaborations and developments

At the beginning of January 2023, the Germany-based trading app announced its decision to add a 2% interest rate to deposits. Following this announcement, in-app investors were given the option to receive interest on their cash balances, without having to pay or to subscribe to any additional services. This plan brought Trade Republic more in line with its industry competition, while also focusing on the company’s aim to calculate the interest in real-time and pay for it monthly. In addition, Trade Republic was also expected to enable investors to gain even when they were not invested in the market. 

At the same time, in a new industry where 2.5+% interest rates were becoming the norm, Trade Republic aimed to introduce a rate that provided already existing investors with the possibility to keep their cash where it is, as well as offering new customers the opportunity to both save and invest with it. 



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Keywords: banking license, certification, banking, online banking, digital banking, mobile banking, financial services, financial institutions
Categories: Banking & Fintech
Companies: European Central Bank, Trade Republic
Countries: Europe
This article is part of category

Banking & Fintech

European Central Bank

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Trade Republic

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