Deposit Solutions – NOAH19 London


Now my favorite exercises when I’m allowed to announce new unicorns and I’m even more happier when a childhood friend of mine max from Bismarck who I know his history worked at World Economic Forum and hassled himself to the hedge fund industry and then Called me up and said I’m going to join a start-up and I tried max the last thing you want to do now is join a startup and Now five years later more or less success later worked out, okay Or you know the World Economic Forum conference organizer And I got a lot of tips from Max in the early days our hedge fund man became a start-up entrepreneur and It’s actually very interesting lesson. Everyone can do things which they don’t even know and Deposit is a wonderful job and FinTech story, please go ahead cool. Thank you. Thank you very much Marco for the Kind introduction as always. It’s great to be back at Noah. In fact, it’s our eighth Noah conference if you combine Berlin and London and our very first appearance speakers at Noah was here in London in 2016 so I wanted to kick it off by taking a very quick look back at that very first presentation That we gave to show you the growth of the business in terms of volume running through the platform So when I was here in November 2016 We had just broken through a 1 billion in Transmitted deposit volume and it had taken us some time to get there. We started the company in 2011 already and today three years later we just recently crossed 20 billion in transmitted deposit volume, and I think it gives you a sense of The growth and the speed of growth of the business in the last year’s. So how did we get there? we started our journey with deposit solutions with the mission to make open banking the standard for the savings deposit business and On the one hand that’s quite a big mission on the other hand. It was also quite a focused one focused in two ways firstly because we really tried to scale one korra product category namely savings deposits and Focus secondly because we really tried to achieve this with the core b2b to see DNA What we Initially wanted to do is to try help develop a new and much more efficient infrastructure for one of the largest markets in finance and Not only a large market but one that is one of the most important both for banks and for savers alike so deposits is a fifty trillion US dollar market globally and if you think about Savings of people they hold about a third of their assets in cash so it’s a massive kind of global market and Interestingly when we looked at it in 2011 Despite what being one of the most important product categories it hadn’t seen any innovation since online banking was a terrible User experience for everyone involved so traditionally if you were a bank and he wanted to offer the positive product to a saver You had to establish an individual direct account relationship with every single saver. So that meant that every bank had to Duplicate the retail infrastructure for every single saver And for the Savior that meant that he had to basically for every product that he wanted to pick open a new bank account so if you had 16 if you had four banks and four savers There were 16 bank accounts that were being opened and run, which is crazy. It’s extremely inefficient It’s not convenient and it’s expensive so With our API enabled open banking platform. We basically transformed this value chain and we make the retail infrastructure of a point-of-sale usable for a deposit-taking Bank by running the accounts in our own platform and this way a deposit-taking bank can essentially reach almost every saver without having to establish their own infrastructure and run direct account relationships and For a saver. It means he can pretty much X is almost any product All from one bank account. So instead of sixteen bank accounts as four bank accounts And so this creates huge efficiency gains for banks for savers and for the industry as a whole so today we successfully run and power white label solutions for point-of-sale partners all across Europe and We essentially able enable them and their customers for the first time to have a true open banking experience for their cash savings directly from their home banking account and it basically takes something that previously would take weeks and Open take opening lots of different bank accounts into a process that takes you two minutes So you can log into your online banking you Look at a variety of different Savings products from different from different providers you choose one that you like You basically determine the investment amount that you want to invest and you can immediately authorize it directly from your online banking and done and From then onwards you can always see all of your investments directly in your account overview so that’s a all of this from your home bank And it’s a totally transforms to use the experience for savers and makes a makes a gigantic Difference One of the One of our partners and power users of the platform Deutsche Bank liked the solution So much and the rollout across the bank that they’ve recently decided to also become a financial investor in deposit solutions we just announced this transaction about four weeks ago And it was the largest FinTech investment that DB has ever made. It was a purely financial investment and and for a small minority stake in in deposit solutions But we feel it’s like he is a huge stamp of approval for us as a company Because we have someone who knows is extremely well who’s been a very very active user of our infrastructure over the past few years Is strongly convinced that there’s a huge opportunity To participate in the value uplift of the company in the years to come So overall since 2011 we feel like we’ve come a really long way We today connect with our open banking platform more than 100 banks across 18 countries DB being one of them Through the different b2b to see partnerships. We can reach more than 40 million savers And as I mentioned in the beginning, we’ve already transmitted more than 20 billion euros of deposits through the platform That’s a big leap from where we where we come from but from our perspective we feel that we’re really just at the beginning of the journey and There’s an amazing runway of growth for the company We’re in full swing with our further internationalization of the business. So we’re adding further markets in Europe and We’ve particularly been working hard over the past Month to prepare our launch in the US where we already have a team on the ground in, New York we’ve already signed first banks and I would stay tuned for some kind of exciting news in in that area But to come back to where started at the very beginning 20 billion and transmitted deposits is great, but we’re operating in a market That’s 50 trillion US dollars so if you look at the business today, we haven’t even scratched the surface of the opportunity that we’re in so I’m quite excited To hopefully share some more more interesting and exciting news with you over the coming weeks and months latest at noir Berlin and With that. I hope you have a great rest of the conference and thank you very much You

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