The journey of our company started in 2011
with the mission to make open banking the new standard for the European deposit business and
We started building an open banking platform that we believed would have the opportunity
to potentially transform the 10 trillion euro savings deposit market in Europe and
At that time not many people were speaking about open banking and as open banking has become quite a buzzword today
I want to speak a little bit about it. What open banking specifically means for us as a business
You're all aware that the shift from closed systems to open systems has already transformed many industries
And it's also transforming financial services in banking that's particularly driven by three factors
Firstly people want it
So Bank customers are no longer satisfied with mediocre products at their home bank if they have
Transparency that there's much better products out there
secondly
Regulation is increasingly pushing the banking industry to open up and PSD to is a prime example
and thirdly
Technology such as ours today makes an open banking experience possible
The other thing that's happening is that banks can increasingly be divided into two separate groups on the one hand
Banks that want to own the retail client relationship
And they want to be the single point of sale for all of their financial services needs
On the other hand banks that want to focus more specifically on
specific product areas could be trade finance leasing mortgage lending consumer finance
And so you're in a situation and the second group we call product banks the first group
We call client banks in a situation where the client banks are in need of external product
Attractive external product to satisfy their customers and those product banks. I need of external funding and
the issue was that there wasn't really a
efficient transmission mechanism between the two and that's essentially what our platform does we've created a
middleware for this new financial economy to connect these types two types of banks and
That's a pretty fundamental
Game-changer for the largest retail banking category deposits so previously if you're a product bank
And you wanted to offer a deposit product to a saver you
had to have an individual account relationship with every single saver that you wanted to offer a fixed-term or instant access deposit to
That's very complex. It's very inefficient, and it's very expensive as well
so with our API enabled open banking platform, we created a middleware that transforms this value chain and
We're doing that
by making the retail infrastructure of Lowe's client banks accessible or
Usable for product banks and that means that these product banks today can reach every saver
without requiring an individual account relationship with them and
For the saver it means he suddenly gets a choice of attractive products from his home bank and for the client bank
It means that they become an attractive hub for their clients deposit business
It's an important point that our business is based on this kind of structural issue in the modern banking system
And I'm saying that because it's not at all based on cross-border interest rate arbitrage or the fact that
different markets in Europe show different interest levels
We all know that interest rate environments might change our business is fundamentally based on the fact that different banks in Europe
Have different business models
We've come a long way with the business since
2011 so today we work with more than 40 banks across more than
15 European countries and through the banks that are connected to our platform. We can reach more than 25 million
individual depositors
We're
also quite
excited that
many leading financial institutions in Europe already using our platform
And it really ranges from some major incumbents to some of the leading challenger banks where the UK here so
In the UK and exam for would for example be close brothers bank
At footsie 250 company on the one hand and on the other hand a leading challenger banks such as Adam
But I wanted to give you to
pick out two concrete examples of banks to illustrate further how
The platform works and also how it creates scale for us as a business and so the two banks
I wanted to pick was on the one hand deutsche bank
With more than 8 million retail customers in Germany alone and on the other hand PBB, which is one of Europe's largest
Real estate finance and public sector finance banks with a balance sheet of more than sixty sixty billion
So our open banking platform via our API is fully
integrated into Deutsche Bank's online banking as a white label solution and so
Today what that means is that these eight million customers are Torture can suddenly?
24/7 within five minutes place the deposit product not only a
Deposit product of Deutsche Bank that they're offering but of select third-party
banks
And they suddenly get a choice
Previously the alternative would have been to go to another bank and open another account
And for our the product banks that are connected to our platform in this case
PBB
Which is one of the banks offering fixed term deposits on the DB platform. It means that they can suddenly reach more than 8 million
clients that previously they have no access to and so this is just
Basically two banks out of 40 partnerships that we have
To illustrate the kind of the scale of the platform, and as we speak
We're basically implementing similar scale
Partnerships such as the deutsche partnership with major banks in in pretty much all relevant European markets
That that was the core of our business so as a
side benefit
We've used our own open banking technology platform
To also transform the user experience of those savers whose home Bank was not offering
An opening banking experience like Deutsche yet, and we did that we do that through our own kind of b2c offering
Which is a smaller part of our business, but it's also quite exciting one because it's been one of the fastest growing
b2c FinTech business in itself
we launched the company in 2011 and we only rolled out the b2c business at the end of 2015 and
In less than two years. We've transmitted more than three and a half billion euros in
deposits and gained more than 80,000 customers on the b2c side and
To kind of give you a sense of the speed of growth. I was just thinking before I came
I spoke here at Noir year ago
And the b2c business had just broken through 1 billion transmitted deposits, I spoke
I think at the end of June and Berlin this year
and the b2c business had just broken through 2 billion euros and transmitted deposits and
Here we are today a little more than four months later, and we've just broke
We've done more than three and a half billion euros and deposits
So
But keep in mind
This is a very exciting business, but it's actually a much smaller business in terms of scale compared to our core b2b business
We think we're at a time where many people are speaking about open banking now
We've been doing it at scale for a while however in terms of our larger mission of making
Open bank in the standard for the deposits business. We feels just the beginning for us, so we're excited about the growth ahead
We have a great team of more than 200 people we have a pan-european presence. We were backed by a great group of
sophisticated investors, and we have one platform that pretty much every bank in Europe via our api's can easily connect to
And let me close by going back to where we started so were convinced that open banking
will overall lead to a more customer centric in a more stable system and
with deposit solutions we will provide an
important backbone in that development
So thank you all very much, and I wish you all a good second day here at NOAA. Thanks
You
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