Deutsche Bank Eyes Trade Finance With TrustBills Buy

Deutsche Bank revealed Wednesday (April 5) the acquisition of 12.5 percent in FinTech company TrustBills.

The Germany-based company specializes in online receivables auctions, facilitating the selling of national and international trade receivables, reports said. According to Deutsche Bank, the takeover is part of broader efforts to strengthen its trade finance position.

“Advancements in technology will significantly change the trade finance market,” said Deutsche Bank Head of Global Transaction Banking, Germany, Michael Spiegel in a statement. “The digital solution offered by TrustBills is an excellent add-on to our value proposition in corporate banking.”

“We are very pleased that Deutsche Bank invests in TrustBills,” said the company’s founder and CEO, Joerg Hoerster, in another statement. “Deustche Bank’s position as one of the world’s largest trade finance banks will provide a great basis for the international rollout of TrustBills.”

According to reports, TrustBills is looking to expand internationally; in 2016, the firm saw a separate investment by DZ BANK. Financial details of the acquisition were not revealed.

In 2015 Deutsche Bank reportedly hired Angela Potter to help expand the bank’s global trade financing services. Potter jointed the FI from RBS and was hired to report as managing director to Daniel Schmand, the bank’s head of trade finance and cash management operations in EMEA.

A report by the World Trade Organization, released last May, found that small businesses in developing nations are particularly challenged with securing solutions like trade and receivables financing when looking to grow internationally. According to the data, 80 percent of global trade is facilitated by some kind of trade finance or credit insurance tool, but there is as much as $120 billion in unmet trade finance needs in Africa alone and up to $700 billion in Asia.