Can Banks Outsource Marketing to Fintech-as-a-Service

Can Banks Outsource Marketing to Fintech-as-a-Service

This article is originally from, acquired by Window in December 2021.

Last month, German fintech startup Raisin announced its Series D, with PayPal, Ribbit Capital, Index Ventures, and Thrive Capital investing $114 million.

Raisin provides consumers with a selection of deposit and savings products from many financial institutions, in a single place.

Raisin does not charge consumers fees, instead offering a digital platform consumers use to manage their accounts. When users open accounts at partner banks, Raisin earns a commission.

Therefore, Raisin acts as a digital (and scalable) financial advisor. Of course, the platform presents the same agency costs as human brokers: “advisors” posing as offering advice, but with an incentive to sell whichever product provides the highest commission.

The success of platforms like Raisin depends in part on whether this conflict-of-interest causes a regulatory crackdown.

There is no particular reason why it should, as the incumbent financial institutions which influence regulators benefit from these marketplace businesses — certainly, they don’t threaten the banks’ core business model.

However, whether regulators tolerate these new digital intermediaries will largely depend on their behavior. If companies like Raisin treat consumers fairly, then a rigid regulatory response is unlikely, but in the event of a scandal, all bets are off.

Fintech Drift Team

Fintech Drift Team

Acquired by Window in December 2021, Fintech Drift was a media property that helped professionals stay ahead of tech innovations shaping the global financial markets.

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