Raisin is backed by top drawer investors including Goldman Sachs.

German fintech firm Raisin expects an increase in deposits sourced through its platforms as lenders seek alternative funding amidst the end of cheap central bank cash. Raisin, backed by investors such as Goldman Sachs (NYSE: GS), Deutsche Bank (ETR: DBK), and PayPal (NASDAQ: PYPL), anticipates deposits to exceed €50 billion ($56 billion) this year, with significant growth from the UK and the US.

With global central banks raising interest rates and withdrawing economic stimulus to combat inflation, lenders face higher funding costs and but potentially increased profits. Moreover, regulatory scrutiny of bank liquidity is intensifying in the wake of failures such as Silicon Valley Bank, posing risks for deposit brokers and marketplaces like Raisin.

However, Raisin’s CEO, Tamaz Georgadze, shrugged off concerns about deposit volatility, emphasizing that the company did not fit the US definition of a deposit broker and highlighting the stability of the firm’s deposits during crises.

According to Georgadze, while banks have benefited from increased net interest income, they have not fully passed on the benefits to retail clients. On the other hand, the benefit of higher rates is only passed on to large customers, corporate clients and customers in wealth management.

However, he claims that Raisin efficiently passes on higher rates set by the European Central Bank (ECB).

The fintech plans to expand its platform by adding 25 to 30 banks, primarily in the US, as deposits sourced through Raisin offer a more cost-effective funding option for banks compared to bonds, particularly as European banks face repaying substantial ECB stimulus loans.

Raisin aims to capitalize on changing central bank policies, increased regulatory oversight, and the demand for better savings rates while providing banks with a cheaper funding alternative.

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