Raisin UK - July 2020

Raisin UK

DIGITAL REPORT 2020

The experiencedriven digital savings marketplace

RAISIN UK

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Raisin UK: the experience driven digital savings marketplace WRITTEN BY

MATT HIGH

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RAISIN UK

Kevin Mountford, co-founder of Raisin UK, discusses the rise of digital marketplace solutions and the importance of customer experience

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oney. It drives many of the most important decisions we make and has the power to change our lives – for better and for

worse. Financial health, financial management and a focus on the greater use of technology to help us make those important decisions is one of the overriding trends currently driving innovation in 04

financial services. And yet, according to research

by Raisin UK, more than 18 million people in the UK admit that concerns, anxieties or thoughts around money and financial wellbeing keep them awake.

Several innovative technologies, companies and business models are addressing this problem in a customer-centric way. One is the savings marketplace model, of which Raisin is a leader. The concept of the marketplace model is nothing new, but it is, says Raisin UK’s Kevin Mountford, a model that is on the rise. “The story of Raisin is very much the story of the rise of the savings marketplace and marketplace solutions,” he explains.

“Financial services and technology have had a close relationship for years, but that’s really taken a completely different meaning in more recent

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RAISIN UK

“ It’s a really interesting time in terms of how technology is helping people to interact with financial services”

Open Banking and so on – but that has really accelerated more recently with a greater focus on the end user.

Service and experience is a great driver and there’s a real evolution for the consumer happening. When Raisin GmbH began operations in Germany, for example, there was a clear understanding that the business had to have a tech-driven proposition but the

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times,” he continues. “It’s not a rev-

ambition was very clear: to help sav-

elation to say that, in the broadest

ers across Europe to make the most

sense, the world of fintech has been

of their finances – technology is really

revolutionary in the industry – even

just a foundation to achieve that.”

more so with things like the rise of

For Mountford, this focus is in part driven by the inherent goal within Raisin of helping people with their finances, but he also recognises the broader shift of consumers embracing digital technology. “The way the people consider their finances is

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07 changing,” he explains. “One question

a level of personalisation through

I’m often asked is ‘what will the world

their technology that is crucial in the

of finance look like in five or 10 years?’

long term. “Despite this, the chal-

and it’s difficult to predict – I think it

lenge for them will be building on the

was Bill Gates, for example, who said

breadth or depth of that relationship

that we need banking but we don’t

and bringing customers into a more

need banks. You look at traditional

profitable environment in the long

banks and incumbents in today’s

term,” he adds. “Ultimately, consum-

market and it’s a difficult position to

ers are interacting with different

be in. They’re improving significantly

companies and models for different

in terms of how they interact with

reasons. The customer is in control;

customers, but it’s very difficult with

whatever you do, it has to be deliv-

legacy systems.”

ered in a way that genuinely earns

In contrast, says Mountford, challenger and neobanks are able to offer

the rights of that customer’s loyalty over time.” w w w.ra i si n . co. u k

RAISIN UK

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RAISIN: HELPING PEOPLE SAVE

than 30 countries and serving more

Raisin, and subsequently Raisin UK,

than 240,000 customers with the

uses innovative technology to help cus-

ability to view, purchase and manage

tomers save time and money through

multiple savings accounts.

its online savings marketplace. The

Mountford is co-founder of the

UK subsidiary of the business was

business, and has been at the helm

founded in 2017 as part of Germany-

of Raisin UK since the German parent

based Raisin GmbH, one of Europe’s

acquired Plan B Funding, a startup

most successful technology-led finan-

consultancy and marketing business

cial services businesses active in more

he established that specialised in

“ The story of Raisin is very much the story of the rise of the savings marketplace and marketplace solutions”

with Starling Bank, for example, and another company called Meteor Asset Management; we have 14 banks in total and more than 40 products. As for how our technology works differently for savers, if you look at the pre-Raisin

assisting banks to raise retail deposits

world you see an environment where

across Europe. He explains: “That com-

customers mainly interact directly

pany grew well but, around late 2016,

with their core banks, albeit with some

we recognised the need to change the

exceptions for things like credit cards

business model and also at the same

or loans. We wanted to provide some-

time, to seek funding opportunities.

thing very different to this in the UK, and

“Coincidentally, around then I’d had

indeed more broadly across Europe.

several meetings with the Group CEO

The model is very simple; we allow

and some of the team at Raisin. I was

customers to make a single applica-

aware that they were keen to build a

tion, run a single regulatory check and

presence in the UK and I could already

deposit their money, which they can

sense that they and their business

then deploy across a number of banks

model were gaining real momentum in

and products.

the wider marketplace,” he continues.

“But, it’s also a business that’s based very much around people and, within that, there was the clear B2C aspect with the aim of being a real consumer champion in the cash savings space.”

Mountford elaborates on the Raisin model: “It’s a very solution-minded approach,” he explains. “Today, Raisin has more than 90 partner banks on board – in the UK we work w w w.ra i si n . co. u k

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“There’s an obvious time-saving

That analysis, Mountford explains,

aspect to it, but there’s also a hygiene

is due to the company’s use of data that

or financial health aspect too – there’s

informs Raisin’s proposition. Other

total transparency and visibility over

technologies that the company

any savings portfolio and the freedom

employs include automation and

to manage that portfolio as they saver

automated account sign up solutions,

wishes,” Mountford continues. “The

and an advanced API that can enable

really beneficial thing to our technology

the exchange of customer data

in particular is that we can see the dif-

across the company’s dashboard.

ferent behaviour within the marketplace

“The key to the customer aspect of it,”

and analyse what our savers are doing.”

says Mountford, “is the online bank-

“ The customer is in control; whatever you do, it has to be delivered in a way that genuinely earns the rights of that customer’s loyalty over time” J U LY 2 0 2 0

ing systems that we have developed.

So, once the customer has registered they are active in a very secure environment that lets them transact, interact with products and service – it’s a true ecosystem model.

“Regardless of the banks or other

competitive market. On the contrary,

parties that we work with, the cus-

he explains, it’s healthy for Raisin

tomer always sits at the top of the tree.

and other businesses due to its rais-

When you consider the service that we

ing awareness to the marketplace

offer, that just has to be the case, you

solution for consumers. “In most

cannot have any failure or problems

cases the market requires some sort

when it’s based around helping people

of collaboration,” he explains. “The

with their money. We understand the

partners that we have are critical

different stages that customers go

because for us to achieve our end

through and there’s an optimal perfor-

game and help savers there has

mance aspect to everything that we

to be a really long-term strategy

consider. If the components are work-

in terms of those relationships.

ing to that level, then it’s a no brainer

“Increasingly now, some of the

for the customer. That’s why the mar-

larger players are recognising that

ketplace model is growing.”

they need to diversify and the likes

Despite that rise, Mountford isn’t intimidated by an increasingly

of Raisin give them a ready-made solution for doing that,” he continues. w w w.ra i si n . co. u k

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“ Once the customer has registered they are active in a very secure environment that lets them transact, interact with products and service – it’s a true ecosystem model”

“There’s no cost of onboarding, other than time and assets, there’s no license fees, so it’s zero risk in that respect.”

The benefits to the marketplace model, then, are clear for both banks and consumers. For Mountford, the plan for Raisin UK is to build on that foundation and continue with its already healthy pipeline of banks.

“It’s recognition of the presence we’ve created in the market. We’re looking to double the number of banks that we have and continue to attain some of those larger players.

We’re also considering new areas, such as ethical propositions, which are becoming popular with consumers. It’s a really interesting time in terms of how technology is helping people to interact with financial services, I think it will continue this awakening of the industry to the fact that the consumer has more power – that fact is greater than it’s ever been.”

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RAISIN UK COBDEN HOUSE 12-16 MOSLEY STREET MANCHESTER M2 3AQ T 0161 601 0000 www.raisin.co.uk

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