Germans who give their hard-earned euros to banks attached to fintechs are being perfectly prudent. They are often doing so in return for higher interest rates. And should the bank go bust, up to €100,000 of their deposits are protected by deposit insurance.
Klarna accesses its German savers via Raisin, a Berlin-based deposit marketplace. “The favourite activity from Germans in optimising their cash returns is so-called rate hopping,” said Raisin chief executive Tamaz Georgadze. This has acquired new popularity since large German lenders, such as Deutsche Bank and Commerzbank, began telling new customers that they would apply negative interest rates to large deposits.