Raisin, a German Fintech that has built a marketplace for savings vehicles allowing users to find the best rates available, is reporting “record growth” during a period of super high interest rates. The European Central Bank, the Bank of England, and the US Federal Reserve have all marched rates higher in a battle with inflation that has remained rather sticky.
Raisin reports that in the EU specifically, term deposits have jumped by 38% in the past 12 months alone increasing by €400 billion.
As for Raisin, the Fintech reports a 66% increase in the past 9 months – currently having €50 billion Assets under Administration. Raisin describes its growth as “exceptional” – the most it has experienced in the past ten years of its existence.
Raisin doesn’t just operate in Europe but also provides services in the US claiming more than $1 billion in net inflows during each quarter of 2023.
The company reports more than 1.3 million customers, each able to earn more interest than leaving it parked in a local bank account or other provider.
In the past year, Raisin says that 62 banks from different markets have expanded their funding mix by working with them.
Along with the robust activity, Raisin noted that the former President of the Bundesbank, Axel Weber has joined its Board of Directors.
Dr Tamaz Georgadze, co-founder and CEO of Raisin, said that topping €50 billion Assets under Administration is proof of how beneficial their model is for both banks and consumers.
“But this is just the beginning. We still have immense potential to capture the gigantic market of over 95 trillion euros in deposits and investments in the E.U., the U.K., and the U.S. Our goal is to help even more consumers and banks optimize their financial performance and achieve outstanding results.”
Of course, the question is what happens when rates go into reverse – something that will eventually happen, with some observers predicting 2024 will be the year that rates move lower. Raisin also offers an investment marketplace that includes ETFs, retirement products, private equity, crypto, and more. Once customers start using the Raisin service, this makes them more inclined to stick around and keep the funds in the other asset classes Rasin has to offer.