Raisin is looking to hit $1.3 billion in assets under management in the UK next year

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Raisin, which operates a savings marketplace, is targeting £1 billion ($1.3 billion) in assets under management (AUM) in the UK for 2020, per a press release seen by Business Insider Intelligence.

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Raisin launched in the UK in February 2018, offers users access to the savings products at over 13 banks, and is expecting to onboard more platforms early next year. Overall, the fintech operates in 31 European countries, has partnered with 87 banks, and has brokered €18 billion ($20 billion) worth of deposits.

• Raisin’s growth is accelerating, indicating that its services are in high demand. The fintech announced in April 2016 that customers had invested over €1 billion ($1.1 billion) via its German platform since launching in December 2013. While a slightly smaller country population-wise, Raisin was able to surpass the $1 billion mark at a quicker pace in the UK, suggesting the fintech’s services are in high demand in the country — likely because banks offered an average of 0.23% in interest in 2018, forcing consumers to look for better alternatives to put their money.
• Raisin also recently teamed up with ClearScore, further boosting its visibility in the country. The startup partnered with UK-based credit scoring fintech ClearScore, giving it access to the latter’s 8 million users, who can set up an account with Raisin and get access to its partner banks’ high-interest savings products within ClearScore’s app or website. With such partnerships, Raisin is further increasing its platform’s chances of success, as it doesn’t have to market to customers individually, likely reducing its acquisition costs.

A number of fintechs are looking to disrupt the UK’s savings industry, and by broadening its product suite, Raisin can get a competitive edge. Goldman Sachs’ Marcus — which currently gives UK users an interest rate of 1.35% AER — first rolled out its services in the UK in 2018 and raked in over $8 billion in deposits in under eight months.

Additionally, UK neobank Monzo teamed up with OakNorth and Shawbrook Bank to offer customers access to a variety of savings account options next to its own offering. To further boost its services and give Raisin a competitive edge, it should expand its product suite further: Its recent acquisition of pensions company Fairr to tap into Europe’s €12 trillion ($13.3 trillion) pension and retirement saving market is a step in that direction.

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