Fintech Raisin has made its first move into the $13.2trn American savings market by acquiring software company Choice Financial Solutions.
Through the acquisition, Raisin will licence Choice Financial Solutions’ original software to American banks.
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The aim is to enable banks to create flexible deposits and offer those products directly to their customers. Alternatively, this can be done via the Raisin US platform to all US retail consumers.
Paul Knodel, Raisin US CEO, said: “Joining forces with Choice Financial Solutions lets Raisin begin offering cutting-edge services to banks and customers before we even launch our US platform. Retail consumers increasingly expect convenience in every area of life. Banks today want to meet that demand, not just in terms of online and mobile banking, but also their banks’ available range of products.
“Raisin sees Choice FS as a perfect fit for our mission in the US deposits market. The enthusiastic market feedback we have received affirms how ripe the savings space is for just this type of personalisation.”
Adapting to American market
As part of the partnership, Raisin is adapting its concept to meet the demands of the American banking environment.
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By GlobalDataRaisin hopes to provide savers convenient access to higher interest rates and allow its partners to offer new products.
Michael Stephan, Raisin COO and co-founder, said: “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 US financial institutions reach the customers they need with the products those savers want. In the US, we know that both personalisation and flexibility are key. This is why Raisin is investing in Choice’s original software and bringing the first customisable deposits to the American savings market.”
The acquisition is Raisin’s fourth major strategic investment in another company within the last year.
