4 fastest growing German FinTechs to watch out for

By Megha Bhattacharya

Germany, home to several successful FinTechs, was ranked second for venture funding into fintech in Europe last year (mainly because of investment from foreign funds). The country hosts significant FinTechs including N26, Kreditech, Fidor Bank, Mambu and many more. Alongside these key players, Germany’s lively FinTech scene has been expanding with the emergence of promising and innovative businesses.

Check out the top German FinTechs to keep a watch on –

1. Raisin  

Raisin is a pan-European online marketplace for savings and investments. It aims to connect retail customers with financial institutions looking to expand or diversify their deposit reach.

Recently, the Spanish financial resource platform Finect launched a partnership with Raisin in a bid to enable the former’s customers to access around 60 deposit products from across Europe. The partnership allows Finect’s users to invest in Raisin’s European partner bank deposits from its platform.

Raisin is available across Europe and operates country-dedicated platforms in Germany, France, Spain, the United Kingdom, Ireland, the Netherlands and Austria. In 2020, the FinTech launched a savings-as-a-service branch in the U.S.

2. Penta

Headquartered in Berlin, Penta is a digital platform for business banking aimed at SMEs and startups. It offers its business customers a German IBAN and debit cards for expense management, on top of its other financial services.

This year, Penta, secured €18.5 million in a funding round with new investors including RTP Global, ABN AMRO Ventures and VR-Ventures. The round was led by HV Holtzbrinck Ventures and RTP Global along with the participation of existing investor finleap. The FinTech stated that Alex Pavlov, Partner RTP Global will join Penta’s board along with Barbod Namini, Partner HV and Michael Hock, CFO finleap.

Penta aims to offer one platform for all financial needs – from simple banking tasks to accounting, expense management, charging customers or getting loans. It recently expanded its target group and market positioning by offering its product and services to solo self-employed people.

3. SolarisBank

Founded in 2016, Solarisbank is a Berlin-based fintech company that offers Banking-as-a-Service Platform with its German banking license.

Recently, Solarisbank announced a partnership with Samsung Electronics and Visa in a bid to bring Samsung Pay to Germany. With the collaboration, Samsung aims to offer its users with an enhanced mobile payment service in the market.

It also cooperated with American Express in Germany, thus enabling personal AMEX cardholders to use an instalment option for card payments of  €300 or more. solarisBank’s new instalment product, Splitpay is expected to go live in a pilot phase in July and will be made available to all person AMEX members throughout 2020. The product combines solarisBank’s lending services and technology along with American Express’ user interface.

4. Trade Republic

Established in 2015, Trade Republic allows its customers to invest in stocks, ETFs and derivatives. It is licenced in Germany, supervised by the Bundesbank and BaFin and counts HSBC, BlackRock, and solarisBank as partners.

Recently, Trade Republic reportedly raised €62 million in a Series B round led by Accel and Founders Fund. The funds raised are expected to further the development of the company as well as fuel its European capital market investment. The company aims to open up trading in Austria, following its launch, expand across Europe, launch new products and enable people to build their assets, commission-free.

ALSO, READ: Cool FinTech Report by IBS Intelligence