Berlin-based fintech Trade Republic is expanding into Italy, offering free current accounts with local IBANs and automated tax filing services. This marks its second major expansion in 2024, reinforcing its challenge to traditional banks, with over €100 billion in assets under management.
Simplifying Banking for Italian Consumers
Trade Republic is the first international digital bank to provide automated tax submissions via Italy’s Regime Amministrato system. This feature aims to make financial management easier for users.
Co-founder Christian Hecker emphasized the need to address Europe’s growing pension gap. Many governments have yet to introduce effective solutions, and he sees Trade Republic’s expansion as part of the answer.
“With our full banking license, local branches, and in-house infrastructure, we are focused on delivering affordable and localized savings solutions that help people take control of their financial future,” Hecker stated.
The platform has grown rapidly, doubling its user base in a year to 8 million customers. It offers 3% interest on deposits, a 1% cashback feature that reinvests rewards into savings plans, and commission-free investments.
Strengthening Its European Presence
Julian Collin, General Manager of International Markets, noted that while the pension gap is a European issue, solutions must fit each market.
“Italy is our second major market expansion this year after France. By adapting our offerings to local needs, we are increasing competition in banking and driving our European growth strategy,” Collin explained.
Trade Republic’s Italian launch comes just weeks after its entry into France, showing its aggressive push into European finance. Despite expansion, the company remains profitable and continues to offer a 3% deposit interest rate, aligned with the European Central Bank’s key rate.
In France, Trade Republic already provides commission-free investment plans compatible with PEA accounts and domestic IBANs.
Competing with Traditional Banks
Trade Republic now operates in 17 European markets under the regulation of BaFin and Deutsche Bundesbank. Its product lineup includes stocks, ETFs, fixed-income securities, derivatives, and digital assets, with features like fractional shares and automated investments.
With this latest expansion, Trade Republic aims to reshape how Italians save and invest, offering a tech-driven alternative to traditional banking and helping users navigate long-term financial challenges.
