German start-up Raisin, supported by Goldman Sachs, is set to expand its presence in the Irish market. With the recent exits of KBC and Ulster Bank, Raisin sees an opportunity to offer Irish consumers better deposit interest rates and increased competition. Learn how Raisin's platform allows multiple European banks to provide savings products to Irish customers, and how they plan to add more banks to their offering next year. Find out how Raisin is developing other financial services products for the Irish market and why European banking customers are increasingly turning to fintech rivals for their savings accounts.
Raisin: Expanding Presence in the Irish Market
Raisin, a German start-up supported by Goldman Sachs, is making moves to expand its presence in the Irish market. With the recent exits of KBC and Ulster Bank, Raisin sees an opportunity to provide Irish consumers with better savings rates and increased competition.
The platform offered by Raisin allows multiple banks across Europe to offer savings products to Irish customers. Since its launch in Ireland in 2019, Raisin has listed 10 banks for Irish consumers to open savings accounts with, and it aims to add more banks to its offering next year.
By offering better deposit interest rates than traditional Irish banks, Raisin aims to attract more customers in Ireland. This expansion comes at a time when the market lacks competition and interest rates remain low.
The Rise of Fintech Rivals for Savings Accounts
Raisin's expansion in the Irish market aligns with a growing trend among European banking customers. Traditional banks are facing competition from fintech rivals, especially when it comes to savings accounts.
Customers are gradually opening up to the idea of using fintech platforms like Raisin to open savings accounts with non-Irish banks while maintaining their everyday banking with their existing bank. This allows them to benefit from better interest rates and more competitive offerings.
The convenience and flexibility offered by fintech platforms, along with the potential for higher returns on savings, are driving customers to explore alternative options for their financial needs.
Raisin's Competitive Advantage in the Irish Market
Raisin's Irish head, Monica Pina Alzugaray, recognizes the significant opportunity to increase the company's offering in Ireland. With the lack of competition and low interest rates in the market, Raisin aims to provide Irish consumers with better deposit interest rates compared to incumbent banks.
Last week, Sweden's TF Bank extended its products to Irish customers through the Raisin platform, further expanding the range of options available to Irish savers. Raisin plans to add more banks to its Irish offering next year, ensuring a wider selection of savings accounts for consumers.
Additionally, Raisin is also developing other financial services products specifically tailored for the Irish market, aiming to provide a comprehensive and competitive range of options for Irish customers.
Raisin's Impressive Growth and Backing
Raisin, founded in 2012, has experienced remarkable growth since its inception. With over 1.5 million customers in Europe and a presence in the US, Raisin has generated over €1bn in interest for its customers.
The company's success is further bolstered by its backing from Goldman Sachs, investment manager M&G, PayPal, and Index Ventures. This support allows Raisin to continue expanding its platform and offering better savings options to customers around the world.
Despite operating from Berlin and having no Irish-based staff, Raisin's commitment to the Irish market demonstrates its dedication to providing Irish consumers with competitive savings products and a seamless banking experience.