Open banking fintech company Deposit Solutions received its latest financing round of just over €40m involving Deutsche Bank. Part-owner and German Venture Capital firm Finlab revealed this in a statement on Wednesday. As part of the financing round, the shares of the Fintech startup were revalued according to the International Financial Reporting Standards (IFRS) and the company is now said to be worth about €1 Billion.Last year, the startup also received a financing round of €100 million from several investors with a valuation of €500 million. This also represents a significant increase in the company valuation reflecting an exponential growth rate of about 200% in terms of the assets on the fintech startup’s balance sheet.A Different Kind of Financial InstitutionDeposit Solutions is a
Topics:
Christopher Hamman considers the following as important: 100 fintech companies, Business News, Companies, deposit solutions, deutsche bank, Editor's Choice, FinTech, FinTech News, News
This could be interesting, too:
Bilal Hassan writes Morocco to Become First Developing Country with Clear Crypto Regulations
Bilal Hassan writes Cryptopia Liquidators Distribute 0 Million to Victims of 2019 Hack
Bilal Hassan writes Mo Shaikh Steps Down as CEO of Aptos Labs to Start New Chapter
Bilal Hassan writes FTX Announces January 2025 as Effective Date for Reorganization Plan
Open banking fintech company Deposit Solutions received its latest financing round of just over €40m involving Deutsche Bank. Part-owner and German Venture Capital firm Finlab revealed this in a statement on Wednesday. As part of the financing round, the shares of the Fintech startup were revalued according to the International Financial Reporting Standards (IFRS) and the company is now said to be worth about €1 Billion.
Last year, the startup also received a financing round of €100 million from several investors with a valuation of €500 million. This also represents a significant increase in the company valuation reflecting an exponential growth rate of about 200% in terms of the assets on the fintech startup’s balance sheet.
A Different Kind of Financial Institution
Deposit Solutions is a financial institution that connects banks. Not like a central bank but more like a clearinghouse that allows for deposits and banking products to be transferred from one bank to another. Already, the fintech startup has connected over 60 banks in 18 countries across Europe. The Banks do not have to build new systems to take care of the retail customers who use the Deposit Solutions platform.
Deposit Solutions also has a direct retail channel for retail clients who have accounts with banks not linked on its platform. These direct banking options have been said to have transferred more than €8 Billion indicating public trust in the startup’s ability to connect financial institutions and to clear funds. Within the same timeframe, the open banking startup also reached over 135,000 customers with its B2C products.
This has created a scenario where the startup has gathered over 30 million depositors and about €14 Billion in deposits.
Meanwhile, Finlab from the onset has had quite an impressive track record with its unique ability to create, invest and grow fintech companies that later turn out to be winners. Their portfolio indicates an uncommon breed of investments which always turn out to be winners sooner or later. Finlab’s current 7% stake after revaluation of shares according to IFRS is at around €70 Million.
From cryptocurrencies to open banking, open markets access to SME finance, Finlab has proven to be one Venture Capital firm that has won more time than it has lost keeping its portfolio simple and unclogged.
Open Banking Could be Fintech’s Golden Egg
It has been estimated that the open banking concept on a global scale is worth more than $50 Trillion. With only one recognized startup in Europe who has successfully done this, it presents a unique opportunity for creative entrepreneurs in the field of technology to be able to harness the potential of the open banking model.
With financial inclusion increasing more than ever before on a global scale and convergence in banking and non-banking activities, open banking is a model that is needed more than ever. This makes it not only lucrative as can be seen from Deposit Solutions but also crucial as well.