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
M
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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