- German fintech Deposit Solutions will launch a savings marketplace in the US.
- It should focus on building an extensive partner network with banks to deliver a strong value proposition.
With this move, the German fintech will introduce its new savings portal dubbed SaveBetter.com to the market and allow US banks national reach for distribution of their retail deposit products, per Reuters.
Founded in 2011, the fintech works with 150 banks from 20 countries and surpassed $30 billion in transmitted deposits earlier this year. Deposit Solutions is now targeting the $16 trillion US deposit market, where its first partner banks will be Continental Bank, Ponce Bank, and the Central Bank of Kansas City.
Deposit Solutions' savings portal aims to bring more choice and convenience to US consumers looking for savings products, while offering banks another distribution channel. Consumers are able to deposit money in all products listed on SaveBetter.com without having to open a new account with every bank, which gives them more variety.
Additionally, the portal allows banks to distribute their retail deposit products beyond their local markets to reach savers nationwide. Deposit Solutions also manages the entire funding process, including marketing and customer service, which provides banks with an end-to-end solution.
Access to a range of savings account offerings is particularly important as the US Federal Reserve continues to cut interest rates. The Fed introduced an emergency interest rate cut in March, in response to the coronavirus pandemic and resulting economic slowdown.
The interest rates banks offer on their savings accounts are loosely linked to the rates the Fed sets, thus many banks have decreased their interest rates. As it gets harder to find a competitive rate, a portal that presents users with more options from a wider range of providers will be especially valuable. That said, the success of SaveBetter.com depends on its partner banks' offerings, so Deposit Solutions should now focus on further building out its US network.
Learn more about the financial services industry
Source: Read Full Article