SavingGlobal, a German startup that enables savers to access the best deposit rates across Europe, has closed €20 million Series B financing led by Palo Alto-based Ribbit Capital and Index Ventures with participation from Yuri Milner and Tom Stafford, bringing the total amount raised to €30 million.
In less than two years, SavingGlobal has brokered over €500 million in deposits from more than 25,000 customers in Germany. The firm says the new funding will be used to drive expansion across Europe, with the first overseas offering arriving later this year.
According to the European Central Bank, EU households manage €10 trillion in savings, but despite the EU’s single market, it remains difficult for savers to access attractive banking products outside of their country of residence. As a result, German savers alone lost out on €190bn in interest earnings over the last five years due to low local interest rates, a recent study by DZ Bank revealed.
CEO and co-founder of SavingGlobal Tamaz Georgadze says the company's goal is to create a true single market for financial services in Europe. SavingsGlobal offers a single user interface, from where users can manage accounts across its multiple banking partners from a central location.
“Our vision is to create a marketplace where every European resident can access savings products from bank partners across the continent without dealing with the hassle of opening separate accounts in multiple countries," he says. "Buying financial products from the best financial institutions should be as easy as putting an item into an Amazon shopping cart."
SavingGlobal currently works with banks in 9 European countries and is onboarding many others who are interested in attracting longer term foreign deposits, says Georgadze.
Neil Rimer, partner at Index Ventures, a venture capital firm with a strong fintech record, having previously backed Adyen, Funding Circle, Robinhood, Transferwise and other industry leaders, comments: “SavingGlobal increases liquidity across EU borders which will inevitably lead to increased competition in the banking sector. There is no reason a French bank should not be able to attract a German customer by providing a better product, or why a Danish saver should not be able to benefit from better rates in the Netherlands.”