German financial technology Fintec Firm Raisin, which aids savers in locating better rates, is wagering that the end of accessible, low-cost central bank funds would lead lenders to look for alternative sources of funding, increasing the amount of capital sourced through its platforms.
In brief:
- The company expects deposits for which it acts as an intermediary to rise above €50 billion ($56 billion) this year from €43 billion at present
-Its investors include Goldman Sachs Group Inc., Deutsche Bank AG, and PayPal Holdings Inc
-This year, Raisin anticipates adding 25 to 30 banks to its platform, many of which will be located in the US, according to Georgadze.
What does this mean?
To combat inflation, central banks around the world are raising interest rates and reducing economic stimulus, which has the dual effect of giving lenders windfall profits and rising funding costs.
