Xaver's current activities associated with his Bafin license

Xaver's current activities associated with his Bafin license

Xaver Embraces Digital Innovation and Expansion in European Pension Market

Cologne-based Fintech Xaver, founded in 2023, has secured a financing round of five million euros and is making waves in the financial sector. Led by CEO Max Bachem, Xaver is focusing on cost-efficient and flexible products to attract younger customers and boost the PEPP market, also known as Europe's pension.

Xaver's strategy for offering and boosting PEPP (Pan-European Personal Pension Products) is twofold. On one hand, the company leverages digital innovation and regulatory first-mover advantages to provide flexible, modular, and accessible pension solutions that seamlessly combine public and private market investments. On the other hand, Xaver expands beyond the financial sector by offering customizable, technology-powered pension and investment products supported by AI-driven advisory tools and partnerships.

Key elements of Xaver's strategy include:

1. Digital Pension Solutions Platform: In partnership with Upvest, Xaver offers a fully digital pension and investment platform that enables financial institutions and other partners to launch modern, compliant long-term savings products with flexibility and cost efficiency. This platform features a modern customer interface, sales tools for advisors, and 24/7 AI financial advising.
2. Innovative Product Offerings: Xaver provides a range of private pension products, such as Depotrente (a modular private occupational pension), flexible reinvestment products for retirees, and wealth transfer solutions. It also offers children’s accounts designed for Germany’s Frühstart-Rente state subsidy scheme, reflecting diverse lifecycle needs.
3. PEPP First-Mover Advantage: Xaver is the first German firm to file as a PEPP provider, positioning itself to capitalize on favorable cross-border regulatory frameworks and market access within the EU.
4. Hybrid Portfolio Access: Investors can seamlessly combine public market instruments (ETFs, mutual funds, bonds) and private market assets (private equity, credit) within one portfolio. Xaver manages these via automated discretionary portfolio management with market-responsive rebalancing, supporting extensive instrument selection (over 250,000) and partner-customized offerings.
5. Expanding Customer Base Beyond Financial Sector: While originating from financial institutions partnerships, Xaver’s flexible, modular approach and digital-first platform with AI advice empower it to reach end customers directly or through diverse partners outside traditional finance. This includes targeting younger demographics through children’s pension products and retirees via reinvestment options, thus broadening its market footprint.

As Xaver considers expanding its customer base through embedded finance, finding a suitable partner for embedded finance is seen as the biggest hurdle. Embedded finance involves non-financial companies offering financial products. Xaver has received a BaFin license as a securities institution and is eager to explore this avenue.

Max Bachem, founder of Xaver, is enthusiastic about embedded finance and sees it as a key growth strategy for the company. The upcoming federal government's promised early retirement is on Xaver's radar, and the company plans to offer fund-based policies and ELTIFs (European Long-Term Investment Funds) to cater to this market.

In addition to its focus on pension products, Xaver's business fields will include an AI-powered insurance sales platform, an AI co-pilot for salespeople, and Asset Management as a Service. As Xaver continues to innovate and expand, it is poised to make a significant impact in the European pension market and beyond.

[1] Lars-Thorben Niggehoff, a freelance journalist and founder of the journalism bureau dreimaldrei, writes about financial topics, SMEs, and the real estate market for various publications.

[2] Source: Xaver press release, 2023.

Fintech Xaver, with a focus on digital innovation and business expansion, is leveraging its unique strategy to revolutionize the European pension market. By offering cost-efficient and flexible pension solutions that seamlessly blend public and private market investments, Xaver is not only attracting younger customers but also expanding beyond the traditional finance sector.

With its digital pension solutions platform, innovative product offerings, PEPP first-mover advantage, hybrid portfolio access, and plans to reach end customers directly or through diverse partners, Xaver is poised to make a significant impact in the European finance industry, especially with the increasing adoption of embedded finance and the promise of early retirement by the upcoming federal government.

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