German fintech solarisBank has announced a successful EUR 56.6 million financing deal, the second highest to date for a German fintech after Kreditech. Their latest Series B funding round is a combination of new funding from Spanish BBVA, Dutch ABN AMRO and Visa as well as renewed investments from current investors Arvato Financial Solutions and SBI Group.
Despite changes in investor lineup, Berlin-based fintech incubator Finleap remains as solarisBank’s largest investor with a stake of 30%, followed by BBVA. The new funds will be used to help further geographic expansion, the fintech said in its press release, as well as the continued development of its online banking platform and the launch of new products. solarisBank has received capital injections in excess of EUR 95 million over the past two years, with initial seed and series A funding rounds closing at EUR 12.2 million and EUR 26.3 million respectively.
Although BBVA and ABN AMRO’s financial backing of solarisBank heralds the first major investment forays by large European banks in the German fintech scene, it dovetails with the broader existing strategies of both finance heavyweights in undergoing digital transformation. BBVA believes that acquisitions in emerging fintechs will hasten BBVA’s growth in the ‘banking as a service (BaaS)’ area, and has recently acquired major stakes in various other digital banking startups all around the world; including Silicon Valley gig-oriented banking platform Azlo, Finnish online business banking service Holvi, the UK’s mobile only Atom Bank, Oregon-based checking account startup Simple and new fintech venture capital partnership Propel. Today, approximately 42% of BBVA’s customers access their banking services online.
ABN AMRO has also completed a slew of its own fintech investment and acquisitions via its in-house Digital Impact Fund (DIF). The fund also owns four other fintech companies: US cloud-based lending platform Cloud Lending Services; US cybersecurity firm BehavioSec; Swedish finance planning app Tink; and an upcoming blockchain-based energy trading platform. With its latest investment in solarisBank, ABN AMRO intends to expand the clientele base of its own subsidiary Moneyou, by allowing the banking platform to access solarisBank’s customers and stakeholders in Germany.
solarisBank is the world’s first banking platform with a full banking license. Founded in March 2016, the company offers “banking-as-a-platform” technology to corporate clients all around Europe and offers products in three categories of banking: digital banking and cards; payments and “e-money”; and lending and deposits. The company is also distinguished for its use of modern RESTful APIs in speeding up the integration of its modular services.