German fintech Raisin now has more than €25 billion in assets under management in savings products, the company announced on Friday (June 10). Press releasesaying this step prepares it for more growth under the interest rate hike announced by the European Central Bank (ECB).
Raisin offers customers in Europe and the United States access to interest-bearing demand and term deposits at more than 160 international partner banks, according to the announcement. The savings volume under management of more than 25 billion euros was invested via the WeltSparen and Zinspilot platforms and the international Raisin portals under the Raisin, Savedo and SaveBetter brands.
The FinTech also offers ETF-based investment and retirement products in Germany, according to the press release. Raisin’s investment division additionally manages nearly $1.6 billion and plans to add new asset classes, including a recently launched private equity product.
“€25 billion of assets under management in custody is a significant milestone for us,” said Katharina Lueth, Chief Client Officer and Managing Director of Raisin, in the press release. “The fact that we have reached it makes us happy and confirms our business model, especially in the current context of reversal in interest rates.
“Cash and Term Deposits were often overlooked by financial experts and the media during the low rate phase, they are now experiencing a renaissance… For the first time in years, we are seeing rates of interest of 1% and above for 1 year term deposits in our largest markets. And the market is showing it: this upward trend in interest rates will not only consolidate, but intensify, “he said. she stated.
Related: Raisin, Deposit Solutions will create a merged pan-European FinTech
Last year, Raisin and fellow German FinTech Deposit Solutions merged into a new pan-European group with around 400 banking partners and more than 500 employees headquartered in Berlin called Raisin DS.
Both companies listed accounts with Greensill Bank, the UK supply chain finance group which recently collapsed and is the subject of a criminal investigation. Greensill’s collapse has raised concerns about the business models that tie depositors to banks.