FinTech: Berlin-based Raisin Launches “Savings-as-a-Service” in the U.S.
Raisin’s new service targets the burgeoning deposit base in the U.S.
Banks and credit unions in the U.S., eyeing the sharp rise in the deposits market following stock market turmoil, can use Raisin’s Savings-as-a-Service. The software is a tailored business solution that can bring “a private banking like experience” to retail deposits. Banks can boost their deposits, all the while keeping costs within control. (IBSIntelligence)
“Banks and credit unions are positioned to play a huge part in restarting the American economy, and they want to be prepared to offer a range of options,” said Raisin U.S. CEO Paul Knodel. “Products that enable customers to stabilize their assets now – and then also grow with a recovery. Ideally affordably, for the bank and its customers. Our software meets exactly this nexus of needs.”
Berlin-based wealth management fintech Raisin has placed deposits worth 23 billion EUR for more than 260,000 customers in 28+ European countries and 91 partner banks since its launch in 2012.
Raisin counts btov Ventures, Goldman Sachs (NYSE: GS), PayPal Ventures, Thrive Capital, Index Ventures, Orange Digital Ventures and Ribbit Capital amongst its investors.
It’s a service that allows banks and credit unions to quickly customize and offer deposit products to retail customers – flexibility that is currently only available to private banking customers. Besides, the software achieves this more cost-effectively compared to developing the product from scratch.
The Raisin SaaS will enable the smaller banks and credit unions to offer deposit products tailored around their cost structure. This is especially relevant now that investors are again appreciating the benefits from bank deposits after the economic damage and uncertainty wrought by the COVID-19 epidemic. As a result, commercial deposits at banks have shot up by about $1.5 trillion between the second week of March and the third week of April.
“Given the prospect of a serious economic slump, financial institutions want a share of the big increase in deposits, but many don’t have the technological tools to optimize or meet customers’ current needs,” said Knodel.
The Raisin software has sophistications such as the design of market-linked products that allow customers to take advantage of an eventual economic rebound, with their entire deposit covered by the FDIC up to $250,000 and all or part of the interest earned linked to a market index. Additionally, products can build in automated ladder strategies and can be customized according to the client’s profitability and liquidity targets.
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