Raisin UK aims to recruit more banks
Manchester-based FinTech Raisin UK plans to double the number of banks using its platform by the end of the year – but admits Brexit uncertainty isn’t helping.
The online savings marketplace received an investment of €25 million from Goldman Sachs in July, taking its total investment to €195m and making it the best-funded tech start-up in the savings and investment area in Europe.
The firm, which was launched in Berlin in 2013, acquired Manchester-based PBF Solutions in 2017, rebranding that organisation to Raisin UK. It appointed Steven Amos as its new chief commercial officer for the UK earlier this year.
Raisin UK’s chief operating officer Lee Stretton told BusinessCloud they hope to double the number of banks onboarded on to their platform by the end of the year but Brexit uncertainty wasn’t helping.
“We were in the process of onboarding three European banks onto our platform in the UK,” he said. “One of these banks decided not to go for a European licence so they’re going to do a currency exchange.
“Of the other two banks, we’ve had to go through quite a lengthy process with one of them and they’re now going through the process of becoming a UK regulated bank. The other one is also looking like we’ll do that.”
Raisin UK has just marked its first anniversary in Manchester and Stretton rated the first year as ‘nine out of 10’.
“Arguably London is always going to be the FinTech capital of the UK just from the sheer amount of people in the area,” he said. “Although salaries are approaching London salaries now, office space in Manchester is much more affordable and the cost of living is a lot better.”
The UK arm of the company now employs 25 staff with plans to increase that to 40 by the end of 2020.
The minimum investment amount needed for Raisin UK is £1,000, although this may be reduced, and the maximum is £85,000. Customers aren’t charged a fee with the banks paying the company a small commission.
Stretton said the Raisin group hoped to become a unicorn with a valuation of more than $1bn. “As a group our aim would be to hit unicorn status in the not too distant future,” he said. “We’re not a million miles from that now.
“In the UK that would be a fantastic scenario to hit. I think we’re some way from that but it’s something to aim for.”
With the new funding from Goldman Sachs, Raisin plans to build its stateside presence to prepare a 2020 launch in the $12.7 trillion US savings market, as well as enter two new European markets within 2019.