Raisin Predicts Deposit Base Will Grow to $56 Billion

German FinTech Raisin is reportedly banking on a shift among lenders to alternative funding sources.

The savings and investment platform anticipates that deposits for which it acts as a go-between will top $56 billion (50 billion euros) this year, up from $48 billion (or 43 billion euros), CEO  Tamaz Georgadze said in an interview with Bloomberg News Monday (July 17).

As that report notes, the recent regional banking crisis in the U.S. has led to greater scrutiny into banking liquidity, which places deposit brokers and marketplaces such as Raisin in the spotlight.

Georgadze rejected the notion that deposits at his company are “flighty,” and argued that Raisin isn’t a deposit broker as defined by the U.S., as its fixed-term deposits aren’t tradable securities. Under 1% of its customers are “interest rate hoppers,” he said.

“These deposits are actually stickier than others in crisis situations,” Georgadze told Bloomberg. “The further away the client is, the more detached they are from events at the bank. They don’t look out the window and see a line of people outside a bank branch.”

Earlier this year, Raisin — whose backers include Goldman Sachs and PayPal — raised $64.7 million in a Series E funding round.

As PYMNTS reported, the company planned to use the funds to add new features to its platform, continue to simplify that platform’s process and accelerate its growth in America.

To that end, Georgadze told Bloomberg that Raisin expects to add 25 to 30 banks to its platform this year, many of them from the U.S.

The news comes as American consumers are slowly rebuilding their savings cushions, as recent PYMNTS research has found.

The PYMNTS/Lending Club collaboration “New Reality Check: The Paycheck-to-Paycheck Report — The Generational Deep Dive Edition” found that millennial consumers have seen their savings increase after being flat much of last year.

In March of this year, these consumers reported an average savings of $11,000, versus $7,300 in the same month last year. This indicates that, like other paycheck-to-paycheck consumers, they have learned to handle their finances throughout several recessions and financial crises.

Those expanding savings cushions can mitigate some of the urgency during sudden and unexpected expenses, something 72% of millennials report experiencing in the past three years.