Having already rolled out its deposits services across Europe, Goldman Sachs and PayPal-backed FinTech Raisin is now giving US banks and credit unions the opportunity to tap into the service.
Essentially, Raisin’s software enables financial institutions quickly and easily to offer customised time-deposit products with a range of flexible features. The ‘Savings as a Service’ software arrives on the market just as banks are taking on a massive increase in cash from Americans wary of the market.
Raisin has already placed around $25bn in deposit products for over 260,000 customers with more than 90 partner banks across Europe through the FinTech’s savings platforms. Additionally dozens of banks, personal finance managers and financial services providers, including N26, Commerzbank, Scalable Capital and Legal & General, integrate the Raisin marketplace into their own platforms and offer it to their customers.
The news comes as COVID-19 has caused volatility in the market, which has resulted in growing interest in deposits. Since the beginning of the year, commercial banks’ deposit market volume has grown more than 10%, with a sharp incline starting the second week of March from $13.5tn to almost $15tn by the third week of April, according to Federal Reserve Economic Data quoted by Raisin.
“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 optimise or meet customers’ current needs,” said Paul Knodel, CEO at Raisin U.S.. “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. Products that enable customers to stabilise 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.”
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