Weltsparen collects more than 100 million euros

The interest portal Weltsparen, which bundles savings offers from all over the world, wants to expand further. Now they have raised 100 million euros for it.

The Weltsparen founders Frank Freund, Tamaz Georgadze and Michael Stephan

PPlatforms that offer access to a wide range of products are very popular. This also applies to platforms such as Raisin (also known as Weltsparen), Zinspilot or Savedo, which give investors an overview of the deposit rates of various banks and also give them the opportunity to invest their money there directly.

The concept of so-called “open banking” is well received. The Berlin fintech Raisin, which operates its platform in Germany under the name Weltsparen, has brokered more than 10 billion euros in investor money from Europe since it was founded in 2012. This enabled around 160,000 investors to earn more than 80 million euros in interest. Investors seem to be convinced by the business model: They gave the fintech more than 100 million euros in a financing round, as the FAZ exclusively learned in advance. Investors include PayPal and Index Ventures, among others.

Interest rate alternatives

Tamaz Georgadze, one of the founders of Raisin, said in an interview that the money raised will be used to expand into new markets. The company currently operates seven platforms. “Two or three new platforms in other countries are to be added,” he says. The company is also considering takeovers.

The cocktail of low interest rates and structural aversion to the capital market, which is currently indigestible from the point of view of German savers, promotes interest rate platforms that think outside the box. For example, the Italian Banca Progetto offers an annual interest rate of 0.7 percent on overnight money, whereas the TF Bank from Sweden only offers an interest rate of 0.05 percent for the same period. A change would definitely be worthwhile, says Georgadze. Southern European banks offer good conditions for fixed-term deposits, while Swedish banks offer overnight money.

Georgadze does not find it questionable that investors then put their money in the care of an Italian bank: “So far, no small investor has been harmed.” In addition, deposits of up to EUR 100,000 are covered by the national deposit insurance. In contrast, customers of Deposit Solutions, which operates the Zinspilot portal in Germany, had an unpleasant experience last year with money invested abroad. The Estonian Versobank, where German savers had deposited money, was closed by the European Central Bank after a money laundering scandal. But because the bank was protected by the national deposit insurance, Savedo customers received all their money back, including interest. To make this possible, however, the interest rate platform has limited its investment amount to 100,000 euros

Those who still feel more comfortable investing their money within Germany can nonetheless benefit from a change. Local interest rate differentials are sometimes much higher. Within Germany alone, you can earn up to 38 times more by changing your house bank, says Georgadze.

Georgadze knows that interest rates will remain at a very low level even after a change of bank, and asks the question: “What are the alternatives?” Georgadze reacts calmly. Even if it sounds “counter-intuitive”, the zero interest rates are also bad for the fintech business. If interest rates rose again, it would lead to more movement in the entire market.