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’.”