Berlin, Germany, Monday, December 18, 2023 – Trade Republic, the German online broker and savings platform, has secured a full EU banking licence from the European Central Bank (ECB) on Wednesday, December 6.
“Most of our customers are still early on their financial journey. As a full bank, we will support them over the next decade. Together with our customers, we strive to build one of the leading financial institutions in Europe,” said Co-Founder Christian Hecker in Trade Republic’s X Post. 1
Trade Republic will now undergo regulatory oversight from both BaFin and the ECB. To comply with these regulations, co-founder Christian Hecker has formed a new audit committee. This committee comprises Ute Gerbaulet, CFO of the Oetker Group, Christiana Riley, North America Chief of Santander and former board member of Deutsche Bank, and Andreas Willius, former managing director of Trade Republic and CEO of the Stuttgart Stock Exchange. The committee’s approval from BaFin is pending, and it is not anticipated to be a significant obstacle. 2
This grants Trade Republic the autonomy to operate beyond its previous limitations, making it a contender within the European financial landscape.
Previously reliant on banking partners like Solaris AE, Deutsche Bank, JP Morgan, and Citibank for crucial functions like customer fund management, Trade Republic is now empowered to directly handle customer deposits and potentially delve into new territories like lending.
This newfound independence offers unparalleled flexibility and control, allowing Trade Republic to tailor its product offerings and strategies with greater agility.
Analysts predict that the full banking licence will unlock a plethora of possibilities for Trade Republic.
The ability to hold customer deposits allows the company to explore options like savings accounts and interest-bearing products, diversifying its revenue streams in addition to its current reliance on payment for order flow.
Additionally, the potential for lending services allows Trade Republic to tap into a whole new market segment, further bolstering its financial ecosystem.
“Receiving a full banking licence underlines Trade Republic’s quality and commitment to our customers,” said Andreas Torner, Managing Director of Trade Republic. 3
“This milestone allows us to expand our product offerings and deliver an even more comprehensive financial experience for our growing user base.” 4
- Trade Republic: https://twitter.com/traderepublic/status/1732309015307149431[↩]
- Trade Republic: https://www.boersen-zeitung.de/english/trade-republic-operates-with-a-full-banking-license[↩]
- Fintech Magazine: https://fintechmagazine.com/articles/trade-republic-lands-full-banking-licence-from-ecb[↩]
- Fintech Magazine: https://fintechmagazine.com/articles/trade-republic-lands-full-banking-licence-from-ecb[↩]
