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
Revolut valued at $5.5bn following $500m fundraise
Revolut has raised an additional $500m in Series D funding, which takes the total amount secured by the company to $836m and values it at $5.5bn...
Hodge joins Advise Wise Mortgage Club lender panel
Hodge has announced that it has been added to Advise Wise Mortgage Club’s lender panel...
Shawbrook provides £500,000 second charge loan to protect property’s value
Shawbrook Bank has provided a £500,000 second charge loan to save a client’s property value...
Redwood Bank launches new business savings bond
Redwood Bank has launched a new one year business savings bond with a rate of 1.62%...
OakNorth Bank completes seven-figure debt finance deal
OakNorth Bank has provided independent advisory firm Dow Schofield Watts with a seven-figure debt finance facility to make a strategic investment in Camlee Group...
Starling Bank raises £60m and gives shares to employees
Starling Bank has revealed that it has raised £60m from its existing investors Merian Global Investors and JTC...
Cash costs time for SMEs — how can banks help?
Cash is still king for businesses up and down the country; businesses that must essentially be flexible to consumer preferences...
SB to host filmed roundtable on how specialist banks aim to utilise technology in 2020 and beyond
Next week, Specialist Banking will host its sixth filmed roundtable event in association with Watson Farley & Williams...
Aldermore names Tim Boag as group managing director
Aldermore has named Tim Boag (pictured above) as its new group managing director of business finance...
Aldermore’s outlook for SMEs in 2020
As we enter 2020, it’s worth reflecting on how the economic landscape in which UK small businesses currently operate in is changing...
Cynergy Bank opens first Scottish office
Cynergy Bank has opened its first Scottish office in Edinburgh...