Berlin-based fintech Trade Republic has achieved a significant milestone by obtaining a full banking license from the German financial supervisory authority, BaFin. With the banking license, Trade Republic places itself alongside prominent fintech banks like N26 and Solaris, expanding its capabilities beyond its current status as a securities trading bank.
Previously, Trade Republic operated with services such as the deposit business being facilitated through partnerships with companies like Deutsche Bank. With the new banking license, it is now authorized to conduct lending and deposit business independently.
Trade Republic founder Christian Hecker sees this as the beginning of a new chapter. There is speculation that Trade Republic may offer its own account with a payment card. A video hinting at such developments is reportedly being shared internally. Currently, Trade Republic’s portfolio includes shares, ETFs, cryptocurrencies, and bonds. Additionally, its clearing account offers a notable four percent interest, a feature that has significantly stirred the market.
In preparation for its full-fledged banking operations, Trade Republic has formed its own audit committee. This committee includes notable figures like Ute Gerbaulet (CFO of Dr. August Oetker), Christiana Riley (banker at Santander and former board member of Deutsche Bank), and Andreas Willius (former managing director of Trade Republic and CEO of Börse Stuttgart).