European wealth management FinTech Raisin is planning to roll out in the U.S. following the acquisition of software company Choice Financial Solutions (Choice FS), Raisin announced on Wednesday (Jan. 15).
Raisin will license Choice FS’ software to banks in the U.S., giving them the opportunity to develop personalized deposit products. Banks will be able to offer the new solutions directly to their own customers or use Raisin’s platform to reach all potential retail consumers.
This is Raisin’s fourth strategic acquisition within the past 12 months.
“Joining forces with Choice Financial Solutions lets Raisin begin offering cutting-edge services to banks and customers before we even launch our U.S. platform,” said Raisin U.S. CEO Paul Knodel. “Retail consumers increasingly expect convenience in every area of life, and banks today want to meet that demand, not just in terms of online and mobile banking, but also their banks’ available range of products.”
Knodel added that Choice FS complements Raisin’s foray into the U.S. deposits market, and that they have gotten positive feedback that “affirms how ripe the savings space is for just this type of personalization.”
Headquartered in Spain, Choice FS was founded in 2010 as a software solution to help banks and credit unions (CUs) customize deposit accounts. The Choice FS software can be used to create non-brokered, customized core deposit accounts with a variety of withdrawal schedules.
“An essential part of Raisin’s strategy in delivering value to our customers and our partner banks is identifying the needs of each market we enter. This new technological solution means helping U.S. financial institutions (FIs) reach the customers they need with the products those savers want,” said Raisin COO and Co-founder Michael Stephan.
He added that personalization and adjustability are important in the American market, “which is why Raisin is investing in Choice’s original software and bringing the first customizable deposits to the American savings market.”
“Over the last decade, we’ve been able to develop and perfect the ‘missing piece’ for both banks and depositors: customizable deposits for each individual’s needs and aspirations, with no incremental operational overhead for the financial institution,” said Choice FS Founder and CEO Daniel Smith. “Our software supports banks and credit unions, often with legacy systems that make true innovation extremely challenging, in bringing brand-new products to market at an unprecedented speed.”
Raisin, which is backed by PayPal, was founded in Berlin in 2013 and has raised about $200 million in funding from investors. It has brokered 13 billion euros ($14.5 billion) in deposits for German banks like Commerzbank and N26.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More