German fintech rivals Raisin and Deposit Solutions have announced they are merging to form Raisin DS.
The newly-created Raisin DS has been positioned as “a pioneer in the savings and investment market, servicing banks and consumers on both sides of the Atlantic”, with both fintechs having recently entered the US market.
Combined, the companies have more than 550,000 direct customers on their platforms, along with around 400 banking partners, and currently have over €20 billion in assets placed at partner institutions through their platforms.
Following the merger, co-founder and CEO of Raisin Dr. Tamaz Georgadze and Dr. Tim Sievers, founder and CEO of Deposit Solutions, will initially lead the new company as co-CEOs, with Dr. Sievers moving to the new company’s advisory board at the end of the year.
“We have been working on this merger for a long time and I am happy and proud that we were able to turn competitors into allies,” said Dr. Sievers.
“With joint forces, we are going to increase our market coverage in Europe, build a significant presence in the US, and pursue our mission to establish Open Banking as the industry standard in the global deposits business.”
Deposit Solutions is a B2B Open Banking platform in the savings deposit space, operating deposit marketplaces for more than 150 partners, including Deutsche Bank, and connecting them with deposit-taking banks from across Europe.
Pan-European B2C savings and investments platform Raisin provides consumers with access to deposit products and, in Germany only, also offers globally-diversified ETF portfolios and ETF-based pension products.
In Europe, Raisin operates under the Raisin, WeltSparen, Savedo, and ZINSPILOT brands, and in the US under the brand SaveBetter.
Dr. Georgadze added: “Raisin DS is breaking down barriers and reinforcing our long-time vision for a single transparent market for savings and investment products.
“We want to contribute to a financial system that better serves day-to-day financial needs of people and enables banks to provide a stronger backbone to the real economy.”
Raisin said that the merger only needs to be registered in the commercial register.