European savings start-up Raisin claims it will change the way deposits are handled in the banking industry after announcing plans to take over a bank.

By taking over one of the banking sector’s legacy players, the MHB Bank of Frankfurt, it will be reversing the trend for established banks to buy challengers as well as re-inventing a legacy banking business process, it claims.

Raisin’s systems connect partner banks together. It currently links 62 client banks in 31 different countries, including Belgium’s top bank KBC and the UK’s ICICI. It also brings together newer incarnations of banking, such as Germany’s ‘digital banking service’ system solarisBank.

Raisin has brokered  $11 billion in deposits for its 160,000 customers since its foundation.

After an injection of $114 million in Series D venture capital, in February, it is now looking for more ‘strategic acquisitions’ as part of an aggressive international expansion plan.

The acquisition of MHB would allow Raisin to develop its services and blend them with the more traditional offerings enjoyed by customers of the bank, according to Tamaz Georgadze, CEO and co-founder of Raisin. There will be new services offered to partner banks and distribution allies too, said Georgadze.

Georgadze said the takeover gives Raisin the chance to create an entirely new phenomenon for the banking sector: deposits as a service. The objective is to make this into the ‘widely-accepted market standard for banks across Europe.’

At the time of going to press the proposed acquisition has not yet been given the necessary approval from the European Central Bank and BaFin, the financial regulator for Germany.

by Bill Boyle
IBS Intelligence Senior Editor