“For a start-up, time is the enemy”
Tim Sievers is the founder of the fintech company Deposit Solutions. This offers an account for fixed and overnight deposits at numerous banks. In doing so, he is setting the rigid market in motion despite low interest rates.
IHe did not want to stay in the academic ivory tower, even if at first he was completely absorbed in theory. But then there were doubts. “Man, maybe that’s not my path after all,” said Tim Sievers, who holds a PhD in economics. He left the ivory tower – and ended up in the private equity business. He tried to give companies the hang of what they need to be successful. In 2011 Sievers took a run on his own account and founded the financial technology company Deposit Solutions – a kind of deposit broker.
Deposit Solutions arranges fixed-term and overnight money offers. Savers can already be there for as little as one euro. The added value for you: You open an account via Deposit Solutions and can use this account to invest the money in attractive banks with high interest rates without having to open a new account there. In addition, the whole thing is free of charge for the investor. The bank, on the other hand, pays a fee for brokering the deposit.
It’s worth it because the bank is expanding its sales reach without setting up its own infrastructure. Despite very low interest rates and the low spread, the business model works, investors jump on it. The savings market remains significant. In order to diversify their financing base, financial institutions do not want to do without the more expensive money from private customers.
Deutsche Bank interest rate market
In the direct customer business, Deposit Solutions now brings savings deposits to the banks via two online portals – Zinspilot and Savedo. The latter platform was once an independent Berlin start-up that Sievers bought out last year. HSH Nordbank (now Hamburg Commercial Bank after changing its name), Latvian Rietumu Bank and Romanian Alpha Bank have put their deposit products on the virtual shelves of the portals. Even if some banks sound rather exotic; Anyone who invests money through Deposit Solutions benefits from the regulations for national deposit protection – the deposits are as secure as with a German bank. In addition to the pure brokerage, Sievers also offers the customer banks to integrate its technology for deposit brokerage into their own Internet presence. This is what Deutsche Bank has done, for example, with its “ZinsMarkt” offer for private customers.
The Hamburg start-up has picked up speed with this offer over the past three years. Far away from the hustle and bustle of Frankfurt’s banking industry, surrounded by the rust-colored brick buildings near the St. Pauli Landungsbrücken, Sievers has laid the foundation for a stately digital financial house. The number of employees has increased from 30 to more than 300 during the period of growth. They move in spring.
Peter Thiel brought on board
Around 175,000 savers are already using Sievers’ deposit services. Through the two direct customer portals Zinspilot and Savedo alone, they have invested more than 12 billion euros in fixed-term deposits and overnight money. The direction is up – which means that the company is also enjoying increasing popularity among banks looking for deposits. “We currently have network effects that are mutually beneficial,” says Sievers.