Private equity company Vitruvian Partners – with EUR 5 billion under management mostly in high-growth companies – led the latest round along with Kinnevik.
Vitruvian was an early backer of Just Eat, Farfetch, and Skyscanner, and will now be represented on the Deposit Solutions board. In August, CYBG, the new holding company for Clydesdale Bank and Yorkshire Bank that was spun out of National Australia Bank in 2016, launched an aggregation service for customers of its mobile banking app, B. This allows B customers to see current-account details and balances in their B accounts from all leading banks and building societies, including Barclays, HSBC, Lloyds Group, Santander, RBS and Nationwide, as well as digital banks such as Starling and Monzo.
Deposit Solutions has a revenue model that consists of charging product banks a commission based on the total volume of funding they raise through its channels dependent on the time over which the funding is held on their books. For those banks that may be seeking cheap, insured deposit funding for assets in which they have specialist credit underwriting skills, that allows a low, variable cost structure instead of the high fixed costs of a branch network or customer acquisition through stand-alone mobile offerings.
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