Germany-Based Fintech Companies Raisin and Deposit Solutions Merge Their Activities to Form B2C Savings Company

Fintech companies based in Germany Grape and Deposit solutions have decided to merge their activities in order to create a new company in the business-to-consumer or B2C savings sector.

Deposit solutions Currently operates deposit markets for more than 150 partners, such as large institutions, including Deutsche Bank, and links them to deposit banking platforms across Europe. Meanwhile, the Raisin market offers consumers simple or convenient access to competitive deposit products from different European markets.

Together, the companies will work with approximately 400 banking platforms and financial service providers from more than 30 countries. The former competitors have decided to share executive responsibilities and will employ 500 workers in their Berlin offices.

Given the sizeable European deposit market, valued at around € 20 trillion, the combined business entity, called Grape DS, has considerable growth potential in its local market. In addition, the US $ 17 trillion market, into which the two Fintechs have now entered, represents another key area of ​​growth.

Both fintechs are backed by leading investors such as Goldman Sachs and PayPal (Raisin), and Deutsche Bank and Peter Thiel (Deposit Solutions), among others. The two companies obtained a total of 300 million euros of private investments.

Dr Tim Sievers, CEO and Founder of Deposit Solutions, said:

“We have been working on this merger for a long time and I am happy and proud that we have been able to make allies of our competitors. Through our joint strengths, we will increase our market coverage in Europe, establish a significant presence in the United States and continue our mission to establish Open Banking as the industry standard in global deposits.

As recently reported, Berlin-headquartered Raisin officially launched its operations in the United States by partnering with its first partner bank.

MapleMark Bank is said to have become the first US banking institution to integrate Raisin’s Savings-as-a-Service software on its digital platform. By leveraging technology, MapleMark customers can view market-linked term deposit products, cash and term deposits online. They can also view the conditions and yields available, while being able to open their preferred account with just a few clicks.

Raisin had first confirmed its intention to expand its operations in the US markets in mid-2019. The company had appointed its US CEO Paul Knodel from the management team of American Fintech Wealthfront.


Source link

About Wanda Reilly

Avatar

Check Also

US Democrats unveil plans to suspend debt ceiling

Republicans have vowed not to support increasing federal borrowing limit, despite warnings of economic “catastrophe” …

Leave a Reply

Your email address will not be published. Required fields are marked *