German Fintech Raisin Hits €25bn AUM in Savings Products

Raisin, a leading German provider of open banking for savings and investment products, says it now has more than €25bn in assets under management (AUM) in savings products.

The German fintech announced the milestone on Friday in a press statement published on its website.

Raisin said the achievement has set the course for its further growth in light of the European Central Bank’s (ECB) plan to increase interest rates in the eurozone to fight high inflation.

The ECB on Thursday disclosed that it would raise its key interest rates by 0.25% next month.

Speaking further on the milestone, Raisin said that it has invested the €25bn AUM through WeltSparen and Zinspilot, its business-to-business (B2B) marketplaces.

It added that the assets have been invested in its international portals under brands such as Savedo, an online financial marketplace.

Additionally, Raisin operates the B2B marketplace, SaveBetter, in the United States.

“Raisin’s investment division additionally manages more than €1.5 billion and is continuously expanding to include new asset classes, most recently with a private equity product,” Raisin said in the statement.

‘Important Milestone’

In a comment, Katharina Lueth, the Chief Client Officer and Managing Director (MD) at Raisin, noted that the company’s core business (savings products) has established itself “as a sustainable and internationally successful model.”

“25 billion euros in assets under management in deposits is an important milestone for us. The fact that we have reached it makes us happy and confirms our business model, especially during the current interest rate turnaround," Lueth said.

Moreover, she explained, “Through our platforms, we offer access to the best interest rates. For the first time in years, we are again seeing interest rates of 1% and more for 1-year time deposits in our biggest markets.

“And the market is showing: This trend toward rising interest rates will not only consolidate but intensify.”

An Alternative Platform

Raisin noted that interest in its savings product has increased as more people have discovered its platform as an alternative to zero and negative interest rates.

As a result, it said, its business model is booming.

Furthermore, it noted that high inflation and a volatile stock market have resulted in more people demanding for multi-year time deposits.

“By cooperating with a large number of specialized banks from Germany, Europe and the USA that do not operate their own retail business, Raisin is able to offer its customers savings products with attractive interest rates,” Raisin said in the statement.