Fintechs worldwide response is very well received. In Europe as well, investment volume grew considerably in 2018 compared to the previous year, according to a study by consulting firm KPMG. While the business models of a few successful German fintechs continued to attract the attention of investors. The total volume of investments in German fintechs fell sharply from around 1.7 billion to about 1 billion US dollars.
The top three fintechs of the last time
Nonetheless, some startups in the industry are showing very pleasing numbers. First and foremost N26. Who were able to collect 130 million euros at the beginning of last year. And were able to beat that again recently. However, N26 is not the only winner of recent times. We introduce three of the top German financial technology start ups.
N26: The mobile bank
The Berlin based Fintech N26 has successfully completed several rounds of financing in the past. It was not until March 2018 that the company raised $ 160 million in equity including the Munich insurer Allianz and the Chinese Internet giant Tencent. In the current Series-D lap, however, N26 was able to top this high altitude flight again. In January, the startup announced an investment of over $ 300 million, the equivalent of just under € 270 million. With the money N26 plans the step towards the US or Brazilian market. In addition, the Investment N26 helped unicorn status. The company is currently valued at $ 2.7 billion.
This Fintech is a mobile bank. At the start of 2013, the startup impressed with its low cost, easy handling and full control via smartphone. Initially, N26 offered a current account. Meanwhile, the product range has grown steadily. In addition to the private standard current account, which is offered free of charge. There are, for example, the paid upgrade variants Black and Metal. In cooperation with other startups, the N26 app can also manage insurance and take out loans. The latter through cooperation with the auxmoney lending platform.
While established financial institutions are struggling with declining customer bases, mobile bank user numbers are soaring. Over 2.3 million customers already count the startup. Attractive is N26 primarily for younger people who like to exchange personal contact in the bank branch for more favorable conditions and a clear operation via the smartphone.
auxmoney: Loans from person to person
Another top fintech is auxmoney. Even though the Düsseldorf based company has not made headlines like N26 in recent times.
The Fintech auxmoney grants loans, but different than normally happens. Who needs a loan, usually goes to the bank. But the bank does not lend it its own money, but can continue to work with the money that we deposit into our accounts, for example by lending.
This approach surprised the founders, trio Raffael Johnen, Philip Kamp and Philipp Kriependorf. The banks seem to act only as a middleman, so why not just give out private loans and handle the middleman so?
Said and done. In 2018 alone Fintech paid out loans totaling over 550 million euros.
WeltSparen: The most attractive savings
The Berlin based company Raisin, known in Germany under the brand WeltSparen, was also able to conclude a successful Series-D financing round in 2019 over a whopping 100 million euros.
In addition to the sensational round of financing Raisin appeared for another reason in the headlines. While banks around the world are increasingly showing an interest in Fintechs and investing heavily in them. The Fintech has now turned the tables. At the beginning of March, the WeltSparen announced that it had acquired the Frankfurt MHB bank.
WeltSparen offers its customers the most attractive savings possible. As a rule, normal German banks offer significantly lower interest rates than financial institutions do abroad. Therefore, it may be worthwhile to invest your own money better on foreign accounts. However, it can be associated with a considerable effort to inform yourself about the respective offers and everything that is to be observed.
Ebendas takes over world savings for its customers. The aim is to communicate as transparent as possible advantageous investment options. Over 10 billion euros in investor funds, the startup already mediated in this way. According to the company, WeltSparen now has more than 165,000 customers.
It is particularly interesting that the average customer of Fintech. And according to WeltSparen, it is 59 years old. This is a clear contrast to the customer base of N26. Here, the offer was aimed primarily at young users.
Also published on Medium.