Safened, an Amsterdam-based broker platform that has affiliates in the US as well, has announced that it has partnered with DepositBook, a platform that is based in the UK and Dubai which helps in High-Value deposits.
By this partnership, Safened hopes to open up access to the GCC banks for its high-value clients and institutional investors who are in the US and Europe as well. The GCC banks generally tend to give a higher rate of interest on their accounts and products and by opening up these banks to clients in the regions where the interest rates are quite low, the company hopes to build a truly unique global system.
“Our partnership provides a unique wholesale liquidity solution for our US and European corporate and institutional clients, whilst offering highly rated GCC banks attractive USD funding alternatives. With our partnership, we can offer our US customers potentially attractive risk-adjusted returns on term deposit offers of these GCC banks,” according to Chris van Straeten, Co-Founder & Director of Safened.
This is expected to be a win-win situation for all as the GCC banks get access to USD and Euros while the clients in these places get higher interest returns from the various products offered by the GCC banks.
“The partnership between Safened and DepositBook will significantly accelerate growth and provide a strong value proposition to the customers and Partner Banks of both platforms. We will benefit immensely from the scale and global presence of a combined platform and are excited to be embarking on this journey with them,” said Sid Bhandari, Founder & Director of DepositBook.
With the central banks in many of the developed countries on the path to lower interest rates and with negative interest rates also a distinct possibility over the coming years in these regions, the investors are looking out for other avenues where they can have safe and better returns. While stocks, crypto, and FX offer good returns, they come with their share of risk which is why the large investors would want to diversify their portfolio into safer products that are offered by reliable banks at a low cost but better returns than what they get in their own countries. It is indeed interesting to note this kind of a partnership and the large investors would be looking forward to seeing how this partnership develops and works in the long run.