Trade Republic has become a full-fledged bank with a full banking licence from the European Central Bank, and passes on the 4% gross interest rate on its savings account directly to savers, without conditions in terms of fidelity premium or otherwise, which does apply to the major banks.
So says Matthias Baccino, Markets Group Lead at Trade Republic. ‘Passing on 4% gross interest to our savers sets us apart from the big banks, which have set up a complicated tangle of fidelity premiums and the like. Opo the long run, as a saver, you no longer know how your interest is calculated. Interest at Trade Republic applies per annum on the balance, for all new and existing customers, and is live consultable in our app on a daily basis. It is paid out monthly, up to a maximum of €50,000. The deposit guarantee obviously applies for an amount up to €100,000 per account and per customer.’
Almost five years after entering the market, Trade Republic can now provide all essential banking services with a full banking licence, including deposit and lending activities, and meets the strict requirements of the ECB and the German Bafin associated with a full banking licence.
Building wealth
Trade Republic today reaches 350 million people in 17 countries and is backed by the world’s leading venture capital funds. It is supervised by the BaFin and The Bundesbank.
Baccino adds: ‘The additional licences enable new products around Trade Republic’s central mission: enabling everyone to build wealth easily and at low cost. With this full banking licence, Trade Republic underlines its position as Europe’s largest investment platform for periodic investing.’
For example, it is also possible for the only bank in Europe to buy fractions of bonds, giving smaller investors access to denominations otherwise reserved for more wealthy clients. ‘We have seen that with the launch of the two Belgian State Notes, investors have renewed interest in fixed income products. But large sums of money are not for everyone. That is why we offer fractional bond investing. In this way, we really meet the needs of savers and investors who want to build something in terms of wealth with a modest amount.’
Audit
An experienced audit committee will strengthen Trade Republic’s corporate governance. As part of obtaining the full banking licence, Trade Republic is strengthening its corporate governance by establishing an experienced audit committee. Pending approval by BaFin, this committee consists of Ute Gerbaulet, CFO of Dr. August Oetker KG and former general partner of Bankhaus Lampe, Christiana Riley, Regional Head North America at Santander and former board member of Deutsche Bank and Andreas Willius, former Managing Director of Trade Republic and Börse Stuttgart.
