| An Irish fintech firm with U.S. headquarters in Boston recently signed People’s United Bank as its first bank partner in America, the latest link in the fairly new tradition of bank and fintech partnerships.
“In a way it was relatively straightforward. … Our guy knew one of their guys, we pitched them, we talked for many months and agreed that we could work together,” Deposify’s Founder and CEO Jon Bayle told Banker & Tradesman today. “It’s a bank that’s very well established in the Northeast. It’s trusted and has the confidence of its users and deep real estate experience.”
Deposify provides an online, mobile first platform to landlords and tenants for security deposit management, dispute resolution and other compliance obligations. Security deposits deposited using the Deposify service will be held by People’s United Bank for the duration of a tenancy.
“If you’re taking security deposits, you’re assuming significant compliance obligations. That’s the same if you’re an accidental landlord or a professional industrial landlord who has lots of [multifamily] properties. You’re taking security deposits, you’re assuming obligations. … You might end up in housing court if there’s a dispute,” Bayle said.
For Bridgeport, Connecticut-based People’s United, Deposify is not just a source of low-cost deposits, but also an attractive value proposition for the bank’s multifamily customers.
“They have a really good product, in the sense of working with landlords and brokers, property managers and developers,” said Pat Sullivan, Massachusetts president at People’s United. “Obviously safety and compliance are big issues, so having that product fit in well. We recognized what our multifamily operators need.”
Deposify’s home country of Ireland is a fairly small market, compared with the Greater Boston area, Bayle said. There, the fintech employed the strategy of partnering with leasing agents, banks and high-volume landlords to achieve critical mass, rather than trying to market directly to renters. Having pretty much cornered the market in Ireland, Deposify is now turning its sights to the U.S., beginning with major metro markets like Boston and New York.
The company received a warm welcome in Irish-friendly Boston back in April when Deposify chose the city for its U.S. headquarters, with Mayor Martin J. Walsh personally welcoming the company.
“I am excited to welcome Deposify to Boston, a company with Irish roots that has chosen to expand in our city,” Walsh said in a statement at the time. “Boston is open for business and we welcome the opportunity to further strengthen our talented workforce and expand our range of innovative companies with the addition of Deposify, which offers an innovative approach to finance management for rental transactions. I look forward to their continued success as they as they grow and expand in Boston.”
Bayle told Banker & Tradesman today that his company plans to partner with more banks in the U.S. as it deepens its presence here, so that Deposify’s customers can have more choices. For now, he’s pleased with the recent partnership with People’s.
“We’re delighted to be working with the People’s guys,” he said. “They’re a real smooth ride for us. The People’s guys are great and we’re delighted.”
