The PayPal backed financial technology start-up, Raisin bought the MHB Bank of Frankfurt. A unique deal in the world financial market. The move is awaiting an approval from the Garman Federal Financial Supervisory Authority and the European Central Bank (ECB). Last month, Raisin closed a 100-million-euro financing round allocation of the cash for strategic acquisitions and further international expansion. In its first move, the financial technology start-up has decided to tap the banking sector by this acquisition. In 2017, Raisin acquired PBF Solutions in Manchester, UK, which has been successfully converted into a Raisin branch today. With long stretched Brexit, financial landscape in every member of the European Union has been changing. This deal will mark a special move by any financial technology startup since the dawn of financial technology.
The acquisition is aimed at expanding Raisin’s area of operations and the potential increase in its vast value chain. At present, the Frankfurt bank handles account management processes, customer identification and financial transactions for the financial technology startup. All licensed financial institutions details are kept under the care of the Frankfurt bank. Financial markets in Europe and the UK should expect better solutions aimed at solving the problems of the future. Raisin provides simple and direct access to a wide variety of savings and investment products from across Europe. With more than 165,000 customers in less than 7 years, the financial technology firm offers over 250 products through its seven platforms deployed in over 70 European banks worldwide.
On the other hand, MHB is a 1973 established financial institution that has established itself in financial service banking. The bank has been an early supporter of financial technology by offering their services to financial technology start-ups in Germany including, Exporo, CreditShelf and Bergfurst, in addition to Raisin themselves.
Raisin’s famous marketplace offers simple access with no additional charges to attract guaranteed product deposits across Europe. Since its inception, Raisin has brokered 11 billion Euros for over 165,000 customers spread across 31 European countries. The firm works with over 70 partner banks to run this massive financial marketplace. Commenting on the move, Raisin CEO and co-founder Tamaz Georgadze says, “Together with MHB, we can continue to develop and seamlessly integrate all services that we offer to our customers, partner banks and distribution partners.”