For the first time Deutsche Bank is making a major investment in a German fintech start-up.
The lucky recipient of the banking giant’s favor is Hamburg fledgling Deposit Solutions. According to Handelsblatt newspaper, Deutsche Bank acquired a nearly five percent stake in the newcomer – if things develop favorably, Deposit Solutions’ value could rise to more than one billion euros.
Deposit Solutions touts itself as middleware “pioneers in Open Banking,” saying “We partner with banks to build new capabilities and enable substantial growth.” One main idea is to allow banks to raise funding without having to set up retail structures.
It works with banks in 18 different countries, has connections with more than 30 million depositors and has mediated 14 billion euros worth of deposits. It employs more than 300 people.