29 March 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

Thiel joins EUR6.5 million round in European startup Deposit Solutions

08 January 2016  |  6380 views  |  1 cash

PayPal founder Peter Thiel has joined a EUR6.5 million funding round in Hamburg-based startup Deposit Solutions, which is building a B2B-based open architecture platform for retail deposits across Europe.

Deposit Solutions' aim is to transform the EUR 9 trillion European market of retail savings deposits by offering a platform over which European banks can list and sell their savings products. Consumers can use all savings offers with just their one account at their Client Bank and do not need to open numerous new accounts at other banks.

Deposit Solutions believes the approach creates a win:win situation for banks which join the platform. "Retail banks can offer their clients best-in-class interest rates without losing the client relationship to another bank and at the same time can manage excess liquidity," says the firm. "Savers just need one master account with their local bank and can build a portfolio of savings products in the same simple way they would buy shares or mutual funds. Banks looking for retail deposit funding can gather cross-border retail deposits onto their home balance sheet and gain instant access to a large universe of clients without expensive marketing or the need to operate a proprietary retail infrastructure."

The company says it has already mediated deposits in excess of EUR1 billion in different B2B applications over the platform. Acknowledging the difficulty in getting banks to sign up to a product that promotes rival offerings, the firm has also launched its own retail brand Zinspilot in 2014, which markets savings offers listed on the platform directly to German savers.

Thiel's EUR1 million personal investment is an add-on to a September growth financing round led by German fintech fund FinLab.

Says Thiel: "Deposit Solutions is revolutionising the value chain in the retail deposit business by creating significant advantages for savers and banks. It offers a clear, distinct competitive alternative secured by a proprietary technology with the potential to become the new back-end for the European retail deposit market."

The company says the cash will be used to support the European-wide rollout of Deposit Solution and the Zinspilot brand.

Comments: (1)

Christopher Williams
Christopher Williams - RTpay - Boca Raton | 08 January, 2016, 12:00

This sounds like a verty good format, assuming the fees are kep low, and could be expanded into many other areas where a cohesive approach to EU banking could make for a far better market overall. 

It will be interesting to see whether this is restricted to euro countries, or available across the EU  .. and even further currency aspects such as USD, SFC and RMB. 

While the financial structure of the EU/ euro is subject to doubts, a positive approach, such as this, is important to show how value can be created from cohesion. 


Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Big data firm Palantir raises $450m

Big data firm Palantir raises $450m

24 July 2015  |  5660 views  |  1 comments | 4 tweets | 1 linkedin
Number 26 gets EUR10m in funding from Peter Thiel's Valar Ventures

Number 26 gets EUR10m in funding from Peter Thiel's Valar Ventures

16 April 2015  |  7038 views  |  0 comments | 7 tweets | 4 linkedin

Related blogs

Create a blog about this story (membership required)
visit abe-eba.euVisit capgemini.com

Top topics

Most viewed Most shared
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
12564 views comments | 50 tweets | 31 linkedin
MAS to roll out national KYC utility for SingaporeMAS to roll out national KYC utility for S...
11997 views comments | 33 tweets | 45 linkedin
hands typing furiouslyTwo key technologies driving Machine Learn...
8547 views 0 | 16 tweets | 4 linkedin
UK to roll out image-based cheque clearing systemUK to roll out image-based cheque clearing...
6884 views comments | 20 tweets | 43 linkedin

Featured job

Six Figure Base + Commission + Stock Options

Find your next job