Fintech maven and venture capitalist Peter Thiel has invested in Deposit Solutions, an open architecture platform for European retail savings deposits.
The round currently totals about $7 million, the company announced in a Jan. 8 news release. It did not disclose the amount of the PayPal co-founder's investment or when it expects the round to close.
The company plans to use the funds to roll out its platform in Europe, as well as its retail brand, ZINSPILOT, which markets savings offers from its partners. Other participating investors include e.ventures, a global venture capital firm and Deposit Solutions' first institutional investor, and business angels Stefan Wiskemann, Stefan Glänzer and Christoph Linkwitz.
It closed a separate round for growth financing in September. That previous round was led by German fintech investor FinLab AG.
"Deposit Solutions is revolutionizing the value chain in the retail deposit business by creating significant advantages for savers and banks," Thiel said in the release. "It offers a clear, distinct competitive alternative secured by a proprietary technology with the potential to become the new back-end for the European retail deposit market."
Deposit Solutions aims to mediate between banks and their clients by allowing the latter to access an array of savings products from one master bank account, removing their need to create multiple accounts.
The company also framed the product as one that will lower the bank's risk of losing clients as well as the costs of marketing for new clients.