Fidor Bank

Background, Sourcing, Business

In May 2012, JZ International (“JZI”) was introduced to the owners and managers of Fidor Bank (“Fidor”) by one of JZI’s German business brokers. With headquarters in Munich, Germany, Fidor is a unique and customer-centric online bank, combining a social media banking platform with traditional banking services. JZI was able to provide a capital increase to Fidor Bank to expand its lending and banking operations, both across Germany and throughout Europe as well.

Investment Rationale

  • Unique technology platform based on customer-centric social media banking
  • Significant attractive opportunities to expand the lending platform, given the dislocation in the banking markets and the development of alternative financing providers
  • Effective deposit gathering platform with loyal customer base
  • Scalable technology platform for online banking with international roll-out
  • State of the art payment technology with substantial opportunity to grow recurrent non-banking income
  • Veteran management team with prior experience in online technology start-up investments

JZI Value-Add

  • Supported Fidor’s growth via a number of capital increases from 2013 – 2015
  • Introduced new lending portfolios to assist in the loan book build-up
  • Assisted with the UK market entry in 2014
  • Introduced IT-related projects in Germany, the UK, Scandinavia, Spain and Italy to Fidor for the payment processing and technology services side of the business
  • Significantly enhanced the regulatory and risk management processes and augmented the staff in both areas
  • Spearheaded de-listing the company from the Frankfurt Stock Exchange to unlock further value in the technology side of the business
  • Fidor was sold to a French banking conglomerate in Summer 2016, having tripled both the number of customers and loan book from 2013 – 2016