Legal & General strikes savings account deal with Raisin

By Roger Baird on 30th July 2019

P2P/Marketplace Lending

The UK investment giant signs its first fintech partnership.

Legal & General strikes savings account deal with Raisin
Image source: Company supplied

UK investment powerhouse Legal & General has announced its first fintech partnership to offer savings to customers through Raisin.

The asset manager said the move will give its investors asses to the £700bn UK retail savings market, and would “answer growing calls from consumers looking for greater choice and more control when it comes to planning for their financial future”.

L&G customers will be able to use the platform of the German savings marketplace to compare and buy a range of products across the almost 80 European banks the fintech partners with.

Raisin, based in Berlin, has brokered €14.5bn of deals for more than 185,000 customers in 31 European countries since it was founded in 2012, by chief executive Tamaz Georgadze, chief financial officer Frank Freund and chief operating officer Michael Stephan (pictured).

 

‘Stale market’

L&G spokeswoman Janine Menasakanian said: “Investing has an invaluable place in any savings strategy because of the opportunity for greater returns in the long-run, but we do recognise an immediate need to access higher rates for cash savings so our customers can meet short-term goals. Our relationship with Raisin is one of many we hope to commit to going forward.”

The asset manager, founded in 1836, is one of Europe’s largest investment houses with more than £1trn under management.

Raisin UK chief executive Kevin Mountford said: “Put simply, the UK savings market has become stale. With bottoming rates and a genuine outcry from consumers looking for greater choice and more control, our partnership with Legal & General is a big step in helping UK consumers actualise those demands.”

Earlier this month, Raisin said had raised $28m from US investment bank Goldman Sachs, bringing the amount it has pulled in from institutional investors to $142m this year alone. The business also revealed that its American launch, led by US chief executive Paul Knodel, will come in 2020.