Payments

SavingGlobal's Brilliant Plan to Reshape Europe's Deposit Market Just Raised €20 M

SavingGlobal, known as Weltsparen in Germany, is a Berlin-based FinTech firm that has an online marketplace for consumer saving accounts across Europe. The company’s founders noticed the sharp differences in interest rates offered by different European markets. And they realized that people weren’t taking advantage of the best rates if they were in another country. Savers in Germany, for example, currently get 0.2% interest on one-year fixed deposits, whereas those in Greece get 1.9%.

Under EU law, consumers have the right to open bank accounts wherever they want on the continent, but since the 2008 financial crisis (including chronic distress in Iceland specifically), people have tended to avoid foreign banks. Consequently, German savers have lost out on an estimated €190 billion in interest earnings over the last five years.

SavingGlobal launched in 2014 and their marketplace lets you shop around and compare different rates in Europe.

Currently, SavingGlobal is only available to German customers, but they’ve developed a plan to connect all European savers to the best deposit products from banks across the entire European Union. To put this plan into practice, they’ve raised this recent €20 million in Series B funding led by Palo Alto-based Ribbit Capital and Index Ventures in early August, following up on a €7.5 million Series A financing almost a year ago. This marks a rare success for a German startup as such companies have historically struggled to tap into early stage funding.

SavingGlobal has a flexible, low-cost structured platform that allows access to all term deposit products from their European partner banks and manage them in a single online banking experience. No fees are charged for the initial setup, and the company’s commission is entirely performance-based, which allows their partners to access the market profitably at low variable costs from the day one. SavingGlobal currently has 25,000 customers and are partnered with 10 banks across nine countries.

CEO and Co-Founder, Dr. Tamas Giorgadse, has extensive experience working with venture capital and corporate financial firms. The other Co-founder, Dr. Frank Freund, CFA of SavingGlobal, was previously a Senior Consultant at McKinsey & Company. The third Co-founder, Michael Stephan, also worked at McKinsey and started as an intern at Goldman Sachs, now SavingGlobal’s COO.

“We set up SavingGlobal with a clear principle in mind: that we don’t believe in borders where the simple savings products are concerned,” said Dr. Georgadze, “We’re very excited to be teaming up with Index Ventures, a powerhouse investor in disruptive financial services with considerable expertise and a global network of relationships. We are convinced that with their help, we can capitalize on a unique opportunity to reshape the European deposit market. As the first and only online platform for European term deposits, our objective is simply to bring the very best European offers to retail savers in Germany, and soon, in other European countries.”

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Shannon

Shannon is an intern at MEDICI.

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