Equity Story

Hypoport is a completely new type of financial services provider characterised, above all, by the – to date – unique combination of the two business divisions – all-round financial services and B2B financial marketplaces – under a single corporate roof.  The Group's strict orientation to an internet-based business model is its particular competitive strength. This enables Hypoport on the one hand to benefit from the growing acceptance of the internet in the financial services market while at the same time creating important synergies between the two business divisions. The all-round financial services division benefits through its wholly owned subsidiary, Dr. Klein, from the Group's competency in implementing automated business processes, such as the EUROPACE platform it has developed.  In turn, the B2B financial marketplaces benefit from Dr. Klein's market position, which enables the acquisition of customers for transactions to be processed via EUROPACE.
In addition to the synergies created by combining the two business divisions, the Hypoport Group also benefits from the relevant particular competitive strengths of the individual divisions.

All-round financial services: Competitive strengths

• Central acquisition of customer contacts and leads via the internet: Unlike a large number of its competitors, the division acquires the majority of its private clients via the internet. This is made possible by the extensive presence of Dr. Klein on the internet and the comprehensive e-Marketing expertise of Hypoport, and is reflected by significantly lower client acquisition costs.
• Multi-dimensional sales structures: The internet, as the primary sales channel, combined with additional telephone and branch office sales ensure the provision of individualised client advisory services.
• Independence and product diversity: The independence from individual product providers ensures a widely diverse and competitive range of products.
• Advisor specialisation: Each telesales advisor focuses specifically on just one type of product, thus ensuring high levels of advisory quality.

B2B financial marketplaces:

• Competitive strengths Marketplace effect: One reason alone for the particular appeal of EUROPACE for clients is the fact that most of the other players in the sector are already using the platform, which enables the generation of significant economies of scale.
• Proprietary technology competency: All of the system components that are crucial to success are developed by Hypoport itself.
• Can be expanded to include new products: As new clients access the platform and the range of products is extended, comparatively low investments are needed to provide the basis for adding further value through EUROPACE and for generating considerable economies of scale.

Strategy:

Hypoport's corporate strategy is aligned to two primary targets over the coming years. The company aims to expand Dr. Klein to make it the leading internet-based provider of all-round financial services in Germany. By means of internet-based integration along the value creation chain, comprising financial services sales and product providers right up to investors, Hypoport plans to make EUROPACE the market standard while at the same time establishing the platform in other European countries. In addition, EUROPACE will be expanded to include further financial service products.