Deutsche Bank invested in fintech startup

Deutsche Bank invested in fintech startup

Deutsche Bank Innovation Labs

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Deutsche Bank Innovation Labs connect technology startups with our internal teams, enabling them to adopt cutting-edge products and solutions to better serve our clients and employees.\n\nMore: http://labs.db.com

Deutsche Bank invested in fintech startupDeutsche Bank invested in fintech startup

Deutsche Bank bought a 5% stake in the German fintech startup Deposit Solutions. The deal makes Deposit Solutions the second largest German financial and technological private business worth about 1 billion euros. The credit institution does not disclose exactly how much it invested in the firm.

This transaction took place just a few months after the bank announced on a large-scale restructuring program that allows to lay off 18 thousand people against the backdrop of a reduction in investment operations and the desire to increase profits.Deutsche Bank invested in fintech startup It is possible that the purchase was also due to the recent failure of the lender’s merger negotiations with a competitor Commerzbank.

Deposit Solutions’ software allows third party lenders offering savings products to connect to retail banking platforms. The company says the benefit of this procedure is that it allows retail banks that do not sell savings products to offer them to customers at higher interest rates..

In addition to Deutsche, the firm considers Peter Thiel’s venture fund Valar Ventures and the private joint-stock company Vitruvian Partners as investors.. Deposit Solutions stated that Deutsche has been one of the company’s clients since 2017. Fintech also provides its services to the German company Munchener, the British bank Close Brothers and the Atom company..

Deal signals growing interest from banking giants in fintech. It can also be seen as leveraging EU open banking rules that allow third parties to access bank customer data and initiate payments on their behalf..