- Aviva enters UK cash savings market through Raisin Savings as a Service
- Record £125 bn added to UK savings reserves during lockdown
Open Banking pioneer Raisin is partnering with UK’s leading savings and retirement firm Aviva with over 33.4 million customers worldwide. The fintech leveraged its Raisin Savings as a Service technology to launch Aviva Save, allowing the pension and investments specialist to enter the cash savings market for the first time in the UK.
The new Aviva Save platform offers Aviva customers – with 15 million customers in the UK – a selection of fixed-term savings accounts with competitive rates. Aviva savers can pick and mix savings offers from a range of banks and manage them all fully digital under one roof on the Aviva Save platform – without paper forms or hassle, and with complete financial growth visibility.
The launch follows The Bank of England’s Monetary Policy Report in February outlining* that “households have accumulated an excess stock of savings of £125 billion” throughout the pandemic, equating to an average of £5,000 per household. The Bank of England expects this figure “to rise substantially over the first half of 2021.”
Roger Marsden, Managing Director, Retail Savings and Retirement said, “Although we recognise that not everyone will have the luxury of extra cash at this time, those who do will want their money to work as hard as possible.
“Whilst many savers may be frustrated with the low returns they’ve received on their savings during lockdown, the effort involved in moving their money around is often a barrier for them and stops them doing anything at all. This can lead to a general apathy amongst savers to switch, despite there often being more competitive rates available. Aviva Save addresses this by offering customers a range of accounts and rates, meaning they can manage their finances and switch between accounts, easily.
“Our own research showed that more than half (57%)** of people took action in relation to their savings during the last lockdown and, during these uncertain times, they will want to make sure their finances and savings can meet their longer term goals as well as their more immediate needs. Lockdown has meant lifestyle and spending habits have changed and they will continue to change throughout 2021. It is more important than ever that customers take a broader view of their finances and their savings, and shop around for the best option to meet their needs.”
Aviva is the latest investment giant to enter the UK cash savings market through the Raisin Savings as a Service offering, following the launch of Willis Owen and AJ Bell late in 2020.
Katharina Lueth, VP of Europe for Raisin and Chairwoman of Raisin UK, commented:
“The launch of Aviva Save with Raisin’s Savings as a Service represents a significant step toward the future of fintech, bringing embedded finance for the deposits sector mainstream. In December, flows into other deposit accounts within the UK savings market rose to £20.9 bn, an increase from an already high £18.4 bn in November. As a result, the Bank of England estimates that there is almost £1.6 tr in household cash deposits – with a worrying £225 bn sitting in non-interest bearing deposits. Partnerships like this one demonstrate the increased importance of diversification for consumers as well, including gaining access to higher interest rates to optimize the profitability of their liquid savings.”
Raisin is a pioneer for open banking and the leading pan-European one-stop-shop for online savings and investments. To date, Raisin has brokered 30.5 billion Euros across Europe and has 320,000 customers across 31 European countries on eight platforms. With 104 partner banks, Raisin offers by far the largest variety of products and partner banks of all savings platforms and allows customers a wider choice and freedom of choice.
** Research of 2,003 UK consumers conducted on behalf of Aviva by Censuswide, November 2020. Censuswide is a member of ESOMAR- a global association and voice of the data, research and insights industry.
Raisin Press Contact
Nicole Breforth & Maggie Bell
A trailblazer for open banking and the leading pan-European one-stop shop for online savings and investments, Berlin-based fintech Raisin was founded in 2012 by Dr. Tamaz Georgadze (CEO), Dr. Frank Freund (CFO) and Michael Stephan (COO). Raisin’s platforms — under the brand WeltSparen in the German-speaking world — are breaking down barriers to better savings for European consumers and SMEs: Raisin’s marketplace offers simple access at no charge to attractive and guaranteed deposit products from all over Europe, as well as globally diversified, cost-effective ETF portfolios and pension products (currently available in Germany). With one online registration, customers can choose from all available investments and subsequently manage their accounts. Since launch in 2013, Raisin has placed 30.5 billion EUR for 320,000 customers in 28+ European countries and 104 partner banks. Raisin was named to Europe’s top 5 fintechs by the FinTech50 awards and is backed by European and American investors such as btov Ventures, Goldman Sachs, PayPal Ventures, Thrive Capital, Index Ventures, Orange Digital Ventures and Ribbit Capital. Raisin UK in Manchester, banking-as-a-service provider Raisin Bank in Frankfurt, Raisin Pension, and Raisin Technology and Raisin U.S. all belong to Raisin.
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