Banks today are looking to either invest in, partner with, or simply buy fintech startups with great market prospects. Startups do not, typically, buy banks. But Open Banking fintech Raisin has reserved the trend with its recent move– buying MHB Bank of Frankfurt.
Raisin CEO and co-founder Dr. Tamaz Georgadze commented: “as one of the leading fintechs in Europe, we believe in making sustainable changes to the financial system in order to make the needs of customers and partners paramount. Together with MHB, we can continue to develop — and seamlessly integrate — the services we offer customers, partner banks and distribution partners.”
Raisin offers its customers direct and simple access to a large number of savings and investment products from across Europe. This has somewhat shaped the finance industry where the company’s core operating markets are as it enables customers to clearly view ROI comparisons. Raisin’s +165,000 customers are able to choose from 250 products presented by almost 70 European Banks via seven platforms that Raisin runs.
The firm’s move will see Raisin expand its operations and the value chain of the startup.The purchase also re-positions MHB Bank, founded in 1973, as a firm open to innovative banking as a service, with top position companies Exporo, CreditShelf and Bergfürst counted amongst its many clients.
MHB Bank Chairman Reiner Guthier clarifies what the takeover will mean for MHB: “We know the business models and challenges of both sides, fintech and bank. Through this more extensive collaboration with Raisin we will be able to add to our technical expertise along with making important investments in our team. These changes enable MHB even better to support the digital business models of our current partners as well as new ones. This move thus allows us to take the strengths of our current position in credit fronting and expand them further into payments and ‘banking as a service’.”