By Oliver Smith on Wednesday 22 May 2019
Joining N26, Monzo and Revolut in the queue to enter the US.
The German Fintech operates a marketplace of savings accounts across some 31 different banks to help savers move their cash into higher interest accounts.
In the US Raisin says the typical American earns 0.01 per cent on their savings, while accounts exist globally that would earn 270 times more than that.
By solving this hurdle for consumers the Fintech hopes to capture part of the $12.7 trillion US deposits market.
Raisin also appointed Paul Knodel, previously of Wealthfront, to spearhead its expansion as US CEO.
Heading to the US is increasingly in vogue for European fintechs.
The excitement with which all announced their US plans, and the silence that followed speaks volumes about the regulatory, cultural and geographic challenges ahead.
What is surprising is whether Raisin’s advantages in Europe—where savings are largely denominated in a single currency and Open Banking makes data interoperability between banks simpler—will translate to the US.
And without these advantages, whether Raisin can seize the vast US opportunity which so many European fintechs hunger over, yet seem unable to grasp.