German banking group Deutsche Bank has taken a 4.9% stake in fintech firm Deposit Solutions.
The Hamburg-based fintech firm currently powers the bank’s Zinsmarkt deposit service.
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Through Zinsmarkt, clients of Deutsche Bank and online broker Maxblue can gain access to fixed-term deposit products from other European banks offering higher interest.
At present, the service provides access to over 23 fixed-term deposit products from three banks.
Plans are on to add two more banks and more clients to Zinsmarkt’s network eventually.
Deutsche Bank president Karl von Rohr said: “In the digital age the only players who will maintain client contact are those who can offer the best products, even if they are provided by third party vendors.
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By GlobalData“Deposit Solutions has the right infrastructure to enable this in the important business segment of fixed-income deposits.”
Financial terms of the latest transaction were not revealed.
Through the deal, Deutsche Bank intends to capitalise on the expected growth in the fintech firm’s valuation. Currently, around 100 banks utilise Deposit Solutions.
Deposit Solutions CEO and founder Tim Sievers said: “The investment of Deutsche Bank is a milestone for us in two respects. Firstly, the expansion of our platform to include other Deutsche Bank businesses in Germany and abroad will help us grow even faster.
“Secondly, for the first time a client of ours becomes a shareholder of the infrastructure they use.”
