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Hot on the heels of raising $114 million in Series D funding, Raisin, the pan-European fintech marketplace for savings and investment products, has acquired MHB Bank of Frankfurt, its main provider of banking services in Germany. Terms of the acquisition remain undisclosed and the deal is still subject to regulatory approval. However, the moves signals a stepping on the gas for Raisin’s geographical and product expansion ambitions.
In a call, Raisin CEO and founder Tamaz Georgadze explained that MHB Bank provides Raisin’s banking services in its largest market Germany. This sees the bank provide Raisin with account management and customer identification, as well as powering transactions — services that require an underlying banking license.
Bank - Raisin - Part - Infrastructure - In-house
By purchasing the bank, Raisin can bring a key part of its infrastructure in-house and also utilise the full bank license to “passport” its various financial services, including its deposits marketplace and ETF-based investment product, to other European Economic Area (EEA) countries, faster.
Georgadze says that not having a banking license has been a bottleneck to Raisin launching in more countries across Europe. Although available to customers across the EU from the get-go, Raisin has dedicated local market offerings in the Netherlands, U.K., and of course Germany.
Addition - Georgadze - Acquisition - Raisin - Process
In addition, Georgadze says the acquisition will enable Raisin to streamline the on-boarding process for deposit banks as well as distribution partnerships, such as the ones it has with O2 Banking of Telefónica Germany and challenger bank N26.
“With the changes this takeover makes possible, we will be able to offer better services more sustainably to our customers and partners,” says Georgadze. “We want to grow ‘deposits as a service’ into a widely accepted market standard for banks across Europe”. As part of this, Raisin will invest heavily in the underlying technology...
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