According to reports, the German fintech company Raisin is betting on a shift among lenders to alternate funding sources.
According to Tamaz Georgadze, CEO of the savings and investing platform, deposits for which it serves as a middleman are expected to reach $56 billion (or 50 billion euros) this year, up from $48 billion (or 43 billion euros) last year.
The current regional banking crisis in the United States has, as noted in that article, increased scrutiny of banking liquidity, putting deposit brokers and markets like Raisin in the focus.
Georgadze denied that his company’s deposits are “flighty,” and he asserted that Raisin isn’t a deposit broker in the U.S. sense since its fixed-term deposits aren’t marketable securities. Only one percent of its clients are “interest rate hoppers,” he said.
Georgadze claims that “these deposits are actually stickier than others in crisis situations.”The more away the client is from the bank, the more removed they are from what is going on there. They fail to take a quick look out the window to observe a mob assembled in front of a bank branch.
When Raisin raised $64.7 million in a Series E financing round earlier this year, Goldman Sachs and PayPal were among the backers.
