German merger to fuel savings fintech expansion
Summary
As fintechs grow, merging with rivals could provide the best opportunity to cut costs, increase commissions and attract investments. Last week, German savings and investment fintechs Raisin and Deposit Solutions agreed to come together to fuel European and US expansion. “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 and Raisin have brought important innovations to a market that has been underserved for decades. One disadvantage, though, according to Kroener, could be technology becoming redundant, although he added that this is a minor issue in comparison with the opportunities for growth Confidence in the fintech scene is clear, and the industry is still attracting huge investment. Only last week, payments giant Visa announced the acquisition of Tink, bringing the Swedish fintech’s open banking capabilities to its European business and consumer customers.