Deutsche Bank acquires a 5 percent stake in fintech Deposit Solutions

Thursday 19 September 2019 14:10 CET | News

Deutsche Bank has acquired a 4.9% stake in the Germany-based fintech company Deposit Solutions.

Both parties agreed not to disclose details about the volume of the investment.

The bank’s objective with this investment is to benefit from the expected growth in valuation of Deposit Solutions. Deutsche Bank already operates its “Zinsmarkt” deposit offering using technology supplied by Deposit Solutions. Since 2017, Zinsmarkt has enabled Deutsche Bank customers to access fixed-term deposit products from other European banks that pay higher interest. Deutsche Bank is pursuing two goals with Zinsmarkt: offering clients alternative investment opportunities in addition to the bank’s own products and at the same time increasing its fee income from the deposit business, particularly during a period of sustained low interest rates.

Zinsmarkt as well as the cooperation with Deposit Solutions are elements of Deutsche Banks platform strategy. To date, Deutsche Bank’s Zinsmarkt can be used by Deutsche Bank customers and online broker Maxblue clients. The bank is now planning to open it up to a wider range of clients within Deutsche Bank Group.

To date, around EUR 2 billion of deposits have already been transmitted via Zinsmarkt. It currently offers more than 23 fixed-term deposit products with different maturities from three banks. Two additional banks are due to be added in the near future.

Besides Deutsche Bank, nearly 100 other banks from 18 countries are using the Deposit Solutions platform either to offer their clients deposit products from third-party banks or to source deposits for their balance sheet. The company is further expanding internationally: In early 2019, Deposit Solutions launched in Switzerland as the first market outside the European Union; in the coming months the US will follow.

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Keywords: Deutsche Bank, fintech, Deposit Solutions, acquisition, investment
Countries: World