Raisin launches deposit solutions for US banks and credit unions

Written by Ruby Hinchliffe
22nd May 2020

Raisin, the Berlin-based savings marketplace, has launched a ‘savings-as-a-service’ software solution for US banks and credit unions looking for “cost-effective new deposits”.

The Goldman Sachs and PayPal-backed backed fintech’s new software solution will allow US banks to offer customised time deposit products. These are interest-bearing bank accounts which have a pre-set date of maturity.

Raisin’s US CEO Paul Knodel

“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,” says Raisin’s US CEO, Paul Knodel.

“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.”

According to Federal Reserve Economic Data cited by Raisin, since the beginning of the year commercial banks’ deposit market volume has grown more than 10%.

Raisin says it wants to help retail banks tap this lucrative opportunity and offer a level of personalisation often only afforded by private banks “at no extra cost” to the customer.

Raisin will allow customers of partner US banks access to market linked products, with 100% of their deposit covered by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.

The deposit products can also include dynamic features, such ‘automated ladder strategies’, or optimisations for profitability and individual liquidity needs.

“Products that enable customers to stabilise their assets now and also grow with a recovery,” adds Knodel. “Ideally affordably, for the bank and its customers. Our software meets exactly this nexus of needs.”

In January, the fintech acquired Choice Financial Solutions (FS) – a Spanish-American deposit software provider, marking its first step into the US deposits market. The move acts as a foothold for the fintech into partnerships with American banks.

To date, Raisin says it has placed roughly $25 billion in deposit products for more than 260,000 customers with bank partners across Europe. The likes of Commerzbank and N26 also integrate Raisin’s marketplace into their own platforms.