Investors Back Mobile Trading in Germany; Digital Banking Takes Off in Israel

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Germany’s Trade Republic Raises $67 Million

While mobile trading and investing app Robinhood rallies from a rough March toward a rumored $200+ million funding round, the company many are calling its European equivalent is making headlines of its own on the other side of the pond.

Berlin-based Trade Republic, which offers a mobile app that enables users to buy and sell stocks, ETFs, and other assets without having to pay a commission, announced that it has raised $67.4 million (€62 million) in new funding. The Series B round was led by Accel and Founders Fund, and will help the five-year old company build out its platform ahead of a formal launch later this year.

“About 85% of assets of European households are in bank accounts with mostly zero or negative interest rates,” Trade Republic co-founder Christian Hecker explained. “Our app enables people to invest their money safely, quickly, and transparently. By doing so, we are democratizing access to capital markets.”

With more than 150,000 users since its May launch last year, Trade Republic’s app is currently managing nearly one billion euros in assets.


Israel’s First Digital Bank Chooses Core Platform

The first digital bank in the country has no official name as of yet and, of course, no physical branches. But courtesy of a partnership with Tata Consultancy Services, the Bank With No Name has found its core platform in the form of the Banking Service Bureau, powered by TCS BaNCS.

“We have achieved a key milestone in the Israeli financial services industry by being onboarded on to TCS’ Banking Services Bureau,” bank chairman Shouky Oren said. “This approach will reduce the cost of banking for the average citizen and foster the development of innovative and differentiated services.”

The bank is slated to open in 2021 and will offer a wide range of services including deposits and loans, credit, account management, and securities trading. The firm will be the first company to receive a new banking license in Israel in more than 40 years.


Here is our weekly look at fintech around the world.

Central and Southern Asia

  • Indian SME and micro-enterprise lender Aye Finance raises $23.8 million in debt funding.
  • A partnership between Mastercard and Askari Bank Pakistan will help the commercial and retail bank expand its product portfolio.
  • Traxcn and IBS Intelligence report that India’s fintech industry saw a 40% gain in funding over the first quarter of 2020 compared to 2019.
  • GooglePay’s Nearby Spot feature, which helps users find essential stores and shelters in their area, goes live in India.

Latin America and the Caribbean

  • Sao Paulo, Brazil readies for the launch of a new digital challenger bank, Elas, dedicated to serving female entrepreneurs.
  • Coronavirus concerns have put the breaks on Mexico’s ability to license new fintechs.
  • Criptolago enables Venezuela’s oil-based stablecoin, PTR, to be transactable via text message.

Asia-Pacific

  • Japanese fintech Paidy raises additional funding from Itochu Corporation for its Series C round.
  • Vietnam-based microlender Finhay secures investment from Acorns co-founder Jeffrey Cruttenden and Thien Viet Securities.
  • Koinworks, one of Indonesia’s biggest P2P lenders, raises $20 million in debt and equity.

Sub-Saharan Africa

  • Flash, a fintech based in the Democratic Republic of Congo, introduces a new payment offering, Flash Money, in partnership with Visa.
  • PagaSystems and Nigerian fintech SystemSpecs join forces to boost electronic payments in Nigeria.
  • South Africa’s new fintech innovation hub goes live.

Central and Eastern Europe

  • Hamburg, Germany’s Deposit Solutions expands its partnership with Deutsche Bank.
  • NAGA, a German fintech that enables social trading and investing in stocks, cryptocurrencies, FX and other assets, announces profitability.
  • Born2Invest features venture investor and founder of iTLEADERS Yegor Klopenko on the challenge COVID-19 presents to Russian fintech.

Middle East and Northern Africa

  • Commercial Bank, based in Qatar, introduces new payroll service to help companies support employees’ digital international money transfers.
  • Mohamed Okasha, co-founder of Egyptian fintech Fawry, to launch $25 million fintech fund.
  • Qatar Development Bank (QDB) launches fintech incubator and accelerator programs.

Top image designed by Freepik

https://finovate.com/investors-back-mobile-trading-in-germany-digital-banking-takes-off-in-israel/