Raisin threatens Bafin special representative: What that means for the fintech startup

As soon as Bafin sends a special representative to a financial institution, things get unpleasant. This special strict measure could now also affect the billion-dollar startup Raisin. According to information from the “Süddeutsche Zeitung”, the Berlin fintech startup Raisin is likely to face severe regulatory measures from Bafin. As research shows, the financial regulator Bafin is apparently increasingly losing patience with the company and is probably considering sending a special representative to the company. This would then work on suspected deficiencies in money laundering prevention at Raisin Bank. Sending a special representative is considered a particularly strict measure. It is used when the authority comes to the conclusion that an institution is not solving its problems quickly enough and sufficiently. Most recently it hit N26, Unzer and Deutsche Bank, among others. Germany's largest financial institution has even had to tolerate a special representative at its side twice in recent years - each for a longer period of time. Such a measure is extremely unpleasant for a bank. His appointment alone signals that the supervisory authority sees significant problems. In addition, it causes high costs for the financial institution concerned. However, Bafin has not yet sent a corresponding notice in the Raisin case. The startup Raisin still has the chance to avert the alleged measure. A spokeswoman for Raisin said that the bank had not received a legally binding decision from Bafin. Furthermore, the company generally does not comment on market rumors. The Bafin did not comment when asked by the SZ. Raisin is one of the most successful German financial startups. It was founded in 2012 by Frank Freund, Michael Stephan and Tamaz Georgadze and brokers daily and fixed-term deposits across Europe. For a long time the company was on the market under the brand “Weltsparen”, but now operates as Raisin. The startup has more than a million customers in more than ten countries and is worth more than two billion euros. Many people also know Raisin as the jersey sponsor of the Union Berlin football club.