solarisBank Raises $67 Million; More MENA Fintech; What’s Next for Wirecard

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Berlin, Germany-based “tech company with a banking license” solarisBank has secured $67 million in funding (€60 million). The Series C round was led by HV Holtzbrinck Ventures and Storm Ventures, and featured participation from a wide number of investors including BBVA, ABN Amro, SBI Group, Global Brain, Hegus, and Lakestar. Also participating in the oversubscribed round were Vulcan Capital and Samsung Catalyst Fund.

The investment takes the company’s total funding to more than $180 million (€160 million), and will be used to help fuel Solarisbank’s continued expansion throughout Europe. Since 2017, the company has doubled its revenues every year, and grown its product portfolio to include solutions like decoupled debit cards and post-purchase installment products. With more than 400,000 end-customer accounts as of the end of the first half of 2020, the company also announced that it will expand its operations in the cryptocurrency space via its subsidiary solaris Digital Assets.

“solarisBank is continuing its impressive growth and the current financing round will help us to expedite building a pan-European platform,” solarisBank CEO Dr. Roland Folz said in a statement. He added, “We are the leading platform for Banking-as-a-Service in Europe and are excited that this exceptional group of new investors will now be a part of our journey.”


More on MENA Fintech

Last week we reported on a study that highlighted the fintech innovations that were most likely to drive financial inclusion in the MENA region. This week we note another report on fintech in the Middle East and Northern Africa, this time from Deloitte, which noted a growing appetite for fintech solutions from the region’s banking customers.

At the same time, Deloitte Digital’s Middle East FinTech Study, released in June, cautioned that further fintech development in the region faces challenges with regard to financing, and a wariness from traditional banks toward engaging fintechs. The latter issue in particular reflects what the report authors – Rushdi Duqah and Anthony Yazitzis – call “a certain degree of contradiction and dichotomy.”

“Customer behavior across the Middle East, especially in KSA, is characterized by a willingness to adopt innovative solutions offered by banks,” Duqah and Yazitzis observed. The two highlighted P2P money transfers, account aggregation, and roboadvisory as three such areas. “However, banks are not leveraging the full suite of FinTech solutions/features to address customer’s needs and requirements to enhance the daily banking journey and experience,” they wrote.

Read the full report to see how “harmonization and trust” are the path forward for financial services companies, fintechs, and banks in the Middle East and Northern Africa.


What’s Next for Wirecard?

We reported on the crisis facing Germany’s Wirecard two weeks ago in Finovate Global. Company CEO Markus Braun stepped down amid reports that Wirecard could not account for $2.1 billion in cash, and concerns that the company was “the victim of fraud of considerable proportions.”

This week we learned that Braun has been arrested – though since released on bail – and that Deutsche Bank has engaged with the now-bankrupt company and is considering providing financial support. A report in Bloomberg noted that Deutsche Bank had conducted talks with Wirecard last spring (referred to as “preliminary discussions” that were quickly concluded) and that, despite its woes, Wirecard could be a potentially attractive acquisition target thanks to its partnerships with Visa, Mastercard, and JCB International.


Here is our weekly look at fintech around the world.

Sub-Saharan Africa

  • Billed as “the grand fintech consolidation,” TechCabal takes a look at MFS Africa’s purchase of SME digital payments provider Beyonic.
  • Nigerian fintech Wallets Africa locks in new funding from investors including Y Combinator CEO Michael Seibel.
  • The East African makes the case for Kenya as a top destination for venture capital in Africa.

Central and Eastern Europe

  • Top banking-as-a-service platform solarisBank raises $67 million (€ 60 million) in Series C funding.
  • Electronic payment network Paysera expands to Kosovo.
  • Azerbaijan’s Xalq Bank launches Compass Plus’ open development platform, TranzAxis.

Middle East and Northern Africa

  • Digital property management and rent collection platform Ajar earns UAE’s Most Trusted Fintech in 2020 honors from APAC Business Headlines.
  • UAE’s central bank and the Abu Dhabi Global Market (ADGM) announce the start of their annual Fintech Abu Dhabi Innovation Challenge for fintechs developing solutions for local small businesses.
  • Dubai’s Mamo Pay earns spot in Visa’s Finech Fast Track Program.

Central and Southern Asia

  • Transfast, a U.S.-based cross-border payments company, partners with Pakistan’s Habib Bank to enable money transfers to Pakistan.
  • Bangalore, India-based fintech Zeta announces expansion into Vietnam and the Philippines.
  • Indian gold lending startup, Rupeek, unveils zero contact gold loan kiosks to support touchless financing amid the coronavirus pandemic.

Latin America and the Caribbean

  • Mexican fintech ePesos announces $21 million debt financing round with Accial Capital.
  • BizCapital, a lending startup based in Brazil, raises $12 million in funding thanks to an investment from Germany development finance institution, DEG.
  • Credit Suisse buys 35% of Brazilian digital bank modalmais.

Asia-Pacific

  • Myanmar Citizens Bank (MCB Bank) issues MPU-JCB co-branded debit cards.
  • Razer’s fintech arm, Razer Fintech launches new initiative to support local businesses in Malaysia during the global health care crisis of COVID-19.
  • KrASIA profiles Indonesian fintech Akulaku, which offers online credit, wealth management, and digital banking services in the Philippines, Vietnam, and Malaysia.

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