French banking group BPCE announced today in a joint statement that it has acquired German online bank, Fidor, to accelerate its international expansion and drive the development of its innovative digital technology further.
The move will address a funding squeeze and help Fidor reach the next phase of growth.
Fidor, founded by Matthias Kröner in 2009, is a well-known name in the German fintech scene. It has built a network of 350,000 people in the UK and Germany who are rewarded for providing each other with financial advice.
Kröner said: “In a world of increasing volatility it is important to be member of a strong group. We are excited to have such a well-established partner as BPCE in the financial world that recognises the need for a customer-centric and entrepreneurial approach to banking and innovation.”
The bank, which prides itself on completing all of its services in under 60 seconds, will remain independent after the takeover which will help it address a funding squeeze and reach the next phase of growth.
BPCE chairman, François Pérol, added: “This operation constitutes a key step in the acceleration of the digital transformation of our group. It further demonstrates our commitment to innovation, to developing a customer centric approach enabled by digital banking technology, and to be more involved in the digital and mobile banking field.”
The move by BPCE reflects the growing pressure on brick and mortar banks to expand their digital services as customers handle more of their finances online.