Trade Republic is eager to expand in France. The German fintech, valued at €5.4B, announces that it will open a “technology hub” in Paris. After London, Berlin, and Stockholm, this will be the group’s fourth innovation centre in Europe.
“We already have an office in Paris, but the idea is to expand it. We want to recruit the best engineers here in Paris. We want them to work on our platform, not just for France, but for all the innovative banking products we are developing across Europe,” reveals Christian Hecker, co-founder and CEO of the banking startup.
The CEO is focusing on France because he believes that “Paris is on the rise financially, unlike Berlin, which is a fantastic tech hub but facing challenges.”
Moreover, with Brexit, many fintech employees have moved from the UK to France, making Paris’ financial sector more attractive to major European players. Additionally, the country is home to “fantastic engineering schools.”
While he acknowledges that the current political situation in France is not ideal, he believes that “French clients are increasingly wanting to take control of their savings. They are becoming more doubtful about the current pension system and are looking to protect themselves by investing in financial markets.”
Strong ambitions in France
Earlier this year, Trade Republic announced that French clients would be able to open a current account with a French IBAN, with no fees, and interest at the European Central Bank (ECB) rates, with no conditions or limit on the amount. The fintech also offers a share savings plan (PEA). These announcements came after the fintech obtained a full banking licence just over a year ago.
Having been present in France for five years, Trade Republic claims more than one million clients in the country, making it its second-largest market after Germany. Christian Hecker states that the French market “has never grown as fast” and “doubled in size last year.”
“We want to become one of the main banks in the lives of French people within five years. We would like to have ten million clients. We want to penetrate the market even more strongly. That’s the direction of our recent announcements.”
In addition to France, Trade Republic aims to focus on Europe, where it is already present in seventeen countries. “Two years ago, we made the decision to focus on the European continent and the best way to address it. We have acquired real expertise in this market. And we believe that in the European market, we can be worth tens of billions of euros.”
