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Deposit Solutions raises $100 million to speed open banking for retail deposits

Deposit Solutions, the German fintech, has expanded rapidly in its attempt to bring open banking to the heart of the European financial system by creating new platforms for retail depositors to spread their savings among multiple banks from just a single account.

When Euromoney last spoke to the company in April, it had transmitted €6 billion of deposits between 100,000 customers – mostly in Germany, Austria and the Netherlands – using its two proprietary business-to-consumer (B2C) channels, Zinspilot and Savedo.

Tim Sievers,
Deposit Solutions

It had also attracted 50 banks across 16 European countries to use its business-to-business (B2B) platform, which allows so-called product banks – seeking to raise deposit funding without the cost of a conventional branch network – to offer their insured deposits to clients of so-called customer banks, which might be awash with deposit funding and be happy to offer their clients an easy way to shift some savings to other banks without setting up new accounts.

These banks include Deutsche Bank, FFB – the German subsidiary of Fidelity – and MünchenerHyp in Germany, and Atom Bank and Close Brothers in the UK.

Fast forward four months and by mid August Deposit Solutions had transmitted €9 billion of funding across its proprietary B2C channels, which have grown to 155,000 customers. It now has 70 banks on its B2B channel, covering 30 million savers together holding more than €1 trillion of deposits. And it is gearing up for further rapid expansion.

Last week, Deposit Solutions raised $100 million of venture capital to grow the business in new markets. It is set to launch its Savedo platform in Switzerland in October; it is looking at the UK and is now systematically evaluating opportunities beyond Europe.

The firm used to scale its progress and ambitions in terms of the €10 trillion market in European deposits.

“We have so much room to grow in Europe, where our offering is now a proven concept, but we have still only scratched the surface,” Tim Sievers, founder and chief executive officer, tells Euromoney.

But today, the firm is talking in terms of the $50 trillion global market for savings deposits.


Deposit Solutions was initially funded by, Greycroft, FinLab and Peter Thiel. Its latest funding round not only raised a large slug of capital to fund growth, it also established a new valuation of around $500 million for the company.

The European private equity firm Vitruvian Partners – which has offices in London, Munich, Stockholm, San Francisco and Luxembourg, with €5 billion under management mostly in innovative and high-growth companies – led the latest round along with Kinnevik.

Vitruvian was an early backer of Just Eat, Farfetch –­ now preparing to float in New York –­ and Skyscanner, among others, and will now be represented on the Deposit Solutions board.

“The people at Vitruvian and Kinnevik are very experienced with fast-growing technology companies and can be a useful sounding board for us, including through their network portfolio companies, as we meet challenges with cross-border growth that they will have already encountered,” says Sievers.

What we have learned is that customers want to stay with their main bank. But they may also want to spread their savings around a little

 – Tim Sievers, Deposit Solutions

The rapid growth of Deposit Solutions’ business and its valuation is a reminder of the potential for open banking to change the financial landscape, even as some disappointment takes hold that this has not already happened.

Sometimes when looking for evidence of such a radical change as open banking taking hold, it pays to look at the smaller banks.

In August, CYBG, the new holding company for Clydesdale Bank and Yorkshire Bank that was spun out of National Australia Bank in 2016, launched an aggregation service for customers of its mobile banking app, B.

This allows B customers to see current-account details and balances in their B accounts from all leading banks and building societies, including Barclays, HSBC, Lloyds Group, Santander, RBS and Nationwide, as well as digital banks such as Starling and Monzo.

Debbie Crosbie,

Debbie Crosbie, COO of CYBG, says: “We are one of the first banks to be open banking ready and able to allow c