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German Fintech Rivals To Merge In Bid To Create Pan-European Leader – WealthTech Digest #39

Key takeaways

✅ German Fintech Rivals To Merge In Bid To Create Pan-European Leader

German Fintech Rivals To Merge In Bid To Create Pan-European Leader. Our first digest today focuses on an old rivalry that has since become a budding partnership in the fintech space. Raisin and Deposit Solutions, being competitors in the past, have struck a merger aimed at creating a pan-European group that links banks with depositors. As a result of the merger, the new company will be called Raisin DS and will be headquartered in Berlin. When asked to comment, Raisin CEO Tamaz Georgadze said the deal will end a “continuous tug of war” that has kept both groups on their toes. On the other hand, Deposit Solutions CEO Tim Sievers added that the deal is an effort for them to think bigger. This is in the hopes of creating a European champion that can also play it big in the United States. Both groups list savings accounts and products, allowing consumers to compare offerings and directly deposit money with the banks in some cases. Moreover, both groups have raised €300 million in external funding between them so far, coming from the likes of PayPal and Deutsche Bank. However, both companies have declined to reveal the valuation of the combined group or the relevant stakes between them. Over the past two years, both companies have seen strong growth, with their combined assets rising to €20 billion. According to Sievers, he is very confident that both groups can make the idea work in reality. Even though these companies started as rivals, this merger highlights that they now see each other as friends and equals. Proving that sometimes, your biggest competitor can turn into your most valued ally.

✅ Singapore Digital Wealth App Scores Money From UBS, Samsung

Our next digest goes into the details of a recent funding round secured by a promising Singaporean digital wealth app. Endowus Pte has secured investments from companies like UBS Group AG, Samsung Ventures and Singtel Innov8 to fuel expansion in Singapore and Hong Kong. UBS is putting an unspecified amount of its own money into the app through UBS Next, its $200 million funds dedicated to early-stage fintech firms. With the addition of this capital, the total size of the firm’s Series A funding round went up to $22 million. It is very interesting to note that Endowus was actually founded in 2017 by a former UBS investment banker Gregory Van and his partner Sun You Ning. According to the two, the platform was partly created out of their frustrations when they tried to invest their pension money. They noted that the process was inefficient, difficult, and costly. A former CEO at Morgan Stanley Investment Management in Asia, Samuel Rhee, soon joined the startup to lead investing. When interviewed, Rhee said that the project is about giving advice, access and low cost — three things individuals need to make better decisions and outcomes. Even as early as now Endowus has already established itself as the only digital adviser for Singapore’s national pension plan known as the Central Provident Fund. According to the company, their total assets under advice has surpassed $743 million USD, with them expecting to double that amount by the end of the year. Their success provides a very good insight into the business. When you are a frustrated consumer, you can use that frustration to build an ideal solution – that solution can potentially be worth millions.


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