German fintech companies Raisin and Deposit Solutions are merging to form a new giant in the B2C savings market.
Deposit Solutions operates deposit marketplaces for over 150 partners, including large institutions such as Deutsche Bank, and connects them with deposit-taking banks from all across Europe. Raisin’s marketplace likewise offer consumers simple access to competitive deposit products from all across Europe.
Together they collaborate with circa 400 banks and financial services providers from more than 30 countries. The former rivals will split executive responsibilities and employ 500 staff in Berlin.
Given the sizable European deposit market of €20 trillion, the combined group - Raisin DS - still has significant growth potential in its home market. In addition, the $17 trillion US market, which both companies only recently entered, represents another major growth opportunity.
Both companies enjoy sizeable backing from an A-list group of investors including Goldman Sachs and PayPal (Raisin), and Deutsche Bank and Peter Thiel (Deposit Solutions), among others. Bteween them, the two firms have raised a total of €300 million in private investment.
“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,” says Dr. Tim Sievers, CEO and founder of Deposit Solutions. “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.”