Raisin, a German wealth management fintech firm, has acquired Choice Financial Solutions (Choice FS) for an undisclosed price in a move to foray into the US market.
The German company said that the transaction will enable it to offer unique new deposit products to US banks and credit unions.
Founded in 2011, Choice Financial Solutions has offices in New York, US and also in Madrid, Spain. Banks and credit unions by deploying its software solution enable savers to dynamically and automatically create personalised deposit accounts based on their personalised short- and long-term requirements.
Financial institutions, which create non-brokered core deposits using the company’s software, can personalise term deposit accounts to offer known cash distributions at set periods over the product’s term.
Furthermore, the banks by using the software can optimise for flexibility and return by enabling ad-hoc withdrawal schedules and amounts with a single customised deposit.
Choice FS founder and CEO Daniel Smith said: “Over the last decade we’ve been able to develop and perfect the “missing piece” for both banks and depositors: customizable deposits for each individual’s needs and aspirations with no incremental operational overhead for the financial institution.
“Our software supports banks and credit unions, often with legacy systems that make true innovation extremely challenging, in bringing brand new products to market at an unprecedented speed.”
Raisin will license the software to US banks to help them create flexible deposits and for directly offering the products to their own customers, or through the company’s US platform to all US retail consumers.
The German fintech company said that it is customising its banking-as-a-service model for the US. As part of this, the company will enable its banking partners to reach existing and new customers with original new products, starting with the range of deposits facilitated by using Choice FS software.
Raisin co-founder comments on the acquisition of Choice FS
Raisin COO and co-founder Michael Stephan said: “An essential part of Raisin’s strategy in delivering value to our customers and our partner banks is identifying the needs of each market we enter. This new technological solution means helping U.S. financial institutions reach the customers they need with the products those savers want.
“In the U.S., we know that both personalisation and flexibility are key – which is why Raisin is investing in Choice’s original software and bringing the first customisable deposits to the American savings market.”
The acquisition of Choice FS marks Raisin’s fourth major investment in another company within the last 12 months. In March 2019, Raisin acquired MHB Bank, a long-time service bank in Germany, from an affiliate of Lone Star.
