4 April 2014—Laser and machine tooling manufacturer TRUMPF (Ditzingen, Germany) has announced that it is the first company in the mechanical engineering sector to found its own universal bank, complete with all competencies. TRUMPF Financial Services GmbH will have a full banking license to enable customers and employees to finance sales purchases, borrow and start businesses in Germany and throughout Europe.

A universal license will allow TRUMPF to offer services across borders in Europe without separate authorization procedures—which is allowed thanks to the so-called “EU passport”—but the company plans to limit its special banking services primarily to customers within the manufacturing technology sector. It is the first bank to have been founded in Baden-Württemberg for more than three years.

The formation of a manufacturer's deposit bank is familiar in the automotive industry, but has not been done before in the mechanical engineering sector. Having such financial services in house makes TRUMPF less dependent on outside sources of financing. The universal license also enables TRUMPF to offer its employees and customers daily fixed-deposit and savings accounts with investment opportunities beyond the company’s pension plan.

TRUMPF began providing sales financing as a leasing company in October 2012 under the TRUMPF Financial Services GmbH name, and added a second leasing company, TRUMPF Finance Switzerland in 2007. Customers in 22 countries, including some in the United States and Canada, are already using TRUMPF financing directly or through partners.

According to the company’s year-end report, the regulations in the leasing sector have become tighter, prompting numerous companies to give up their licenses. As the company anticipates leasing sector regulations to diverge toward the far stricter banking sector regulations, the company’s decision to become a full-service bank subject to the strictest supervision was a strategic move. “Then—hopefully—nothing more can surprise us,” said the report.

TRUMPF recorded €2.343 million (US$3.21 million) in sales for the fiscal year 2012/2013, a 0.7 percent increase over fiscal year 2011/2012.