Saxo bank to buy online dutch broker
20 de diciembre, 2018
Tiempo estimado de lectura: 2 minutos
Saxo Bank, a fully licensed and regulated bank, provides investment services to clients across a range of asset classes from a single account
Saxo also licenses its technology to financial institutions (FIs), including banks and brokers, through its Banking-as-a-Service (BaaS) offerings. BinckBank offers investment and asset management services in the Netherlands, Belgium, France, and Italy, including discretionary management services in the Netherlands.
The bank, which had 633,000 accounts as of 2017, also provides a savings brokerage service, dubbed ‘Binck Sparen’ (Binck Savings), through a partnership with German fintech Raisin.The proposed deal aims to help the two firms scale their operations and better manage business pressures.
Online trading and investment providers are facing a range of business challenges, including growing competition, increased regulatory scrutiny, low interest rates, changing customer behavior, and the need for considerable technological investment, according to a press release by the two firms. In particular, we’ve seen fintechs that provide digital wealth management services struggle to scale their operations: For example, the UK’s largest robo-advisory platform Nutmeg reported a loss of £12.4 million ($15.8 million) for the most recent financial year, despite its considerable success in attracting customers — it counts 60,000 customers, having doubled its account numbers between 2016 and 2017. Given the similarity of products and geographical footprint of Saxo Bank and BinckBank, the deal will enable the two to better realize economies of scale, Vincent Germyns, chairman of BinckBank’s executive board, said in the press release.
As the online investment segment becomes more crowded, we’re likely to see similar deals emerge. Competition in the digital investment segment has been heating up as of late, with fintechs and incumbent FIs looking to tap into the growing industry. HSBC and Santander recently launched a robo-advisory platform in the UK to join a growing list of digital wealth managers, while investment fund supermarket Fidelity International is also weighing up the segment, for instance. As such, it’s likely we’ll see firms in the industry consolidate their market shares by partnering with or acquiring smaller players. While smaller fintechs like Nutmeg have done well in their customer acquisition efforts, deals like the one between Saxo Bank and Binckbank are likely to present greater challenges to incumbents in the space as they create bigger firms with larger resources and greater reach.
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