Raisin has announced that it will acquire MHB Bank of Frankfurt, subject to final approval by German Federal Financial Supervisory Authority (BaFin) and the European Central Bank (ECB).
This acquisition will allow the fintech to expand its areas of operation as well as its value chain.
Tamaz Georgadze, co-founder and CEO at Raisin (pictured above), said: “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.”
MHB Bank handles aspects of Raisin’s value chain related to account management, customer identification and financial transactions.
The acquisition will make it possible for Raisin to streamline the onboarding process for deposit banks as well as distribution partners.
Tamaz added: “With the changes this takeover makes possible, we will be able to offer better services more sustainably to our customers and partners.
“We want to grow ‘deposits as a service’ into a widely accepted market standard for banks across Europe.”
MHB has belonged to an affiliate of American finance investor Lone Star since 2005.
It is currently a service-banking provider for fintechs in Germany, with clients including Exporo and CreditShelf.
Reiner Guthier, chairman at MHB Bank, concluded: “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’.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...