Fintechs in Germany are forming new alliances to compete against banks, in move to flex their own muscles in the budding market for IT-enabled banking and financial services.
Recent examples include N26 and Solarisbank. Smartphone bank N26 is collaborating with Auxmoney, Germany’s largest lending marketplace, while Solarisbank is helping refinance another large lending marketplace, Lendico, which was acquired in July by British hedge fund Arrowgrass from Rocket Internet. N26 and Solarisbank are currently the only two fintechs in Germany with full banking licenses.
The partnerships mark a new level of maturity in the sector and signal a move beyond the previous business model of collaboration. By joining forces, fintechs can offer more extensive services and appeal to significantly more customers, according to Friederike Stradtmann of Accenture Strategy.