3 days ago
Kotapay signs Raisin as first client for Banking-as-a-Service platform
Kotapay, a division of First International Bank & Trust (FIBT), today announced Raisin, the global savings and investment platform, as the first financial technology company to integrate with its new bank-direct banking as a service (BaaS) platform, known as Kavinu.
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This integration expands on FIBT's existing partnership with the German-based fintech leader, which already included serving as the holder of Raisin customers' cash accounts. With the conversion of service bank responsibilities to FIBT, Raisin now accesses a variety of cloud-based microservices to processes fund transfers between external accounts and the 80+ banks and credit unions on the Raisin marketplace, as well as perform critical risk management and compliance functions.
By removing unnecessary middleware and nonbank providers used by many to connect banks and fintechs, Kotapay's vertical integration simplifies the BaaS model and accelerates speed-to-market for fintechs and embedded finance providers.
'Kavinu represents the next generation of banking as a service where innovative companies like Raisin connect directly to an experienced banking partner like FIBT and Kotapay,' said Trent Sorbe, Chief Payments Officer at FIBT. 'Raisin is an ideal first partner for demonstrating Kavinu's capabilities and the advantages of our BaaS 2.0 approach. One contract and one connection greatly accelerated speed to market, as Raisin was able to launch in less than half the time experienced by other fintechs reliant on convoluted, unstable models.'
Kotapay, which already provides payments processing to more than 107,000 employers and 1.5 million consumers nationwide, launched Kavinu to redefine BaaS by emphasizing direct relationships between fintech companies and banks. This approach ensures fintech solutions are built on a trusted foundation with faster time to market, proven scalability and increased revenue potential.
Key advantages of the Kavinu platform include:
Direct bank integration - Provides financial innovators with a direct connection to an experienced banking partner.
Bank-grade security - Leverages FIBT's robust compliance infrastructure, extensive risk management systems, and deep regulatory prowess.
Accelerated speed to market - Enables faster implementation compared to other models, allowing partners to launch new products and services faster.
Proven scalability - Supported by Kotapay's existing payments infrastructure, which processed over 64 million transactions totaling more than $102 billion in 2024.
Experienced leadership - Benefits from a team of industry leaders that propelled FIBT to one of only six community banks on the Nacha's top-50 ACH originators list.
Versatile architecture - Cloud-native, API-driven technology layer adaptable to various business models beyond typical BaaS use cases.
'FIBT and Kotapay are among a small group of institutions that are both technology-forward leaders in electronic transaction processing and backed by the stability of a 115-year-old, family-owned bank,' said Cetin Duransoy, CEO at Raisin. 'The combination of industry leadership and superior technology in a single bank-direct platform is the right solution as we continue to grow and scale our platform. Kavinu also meets the high standards expected by our 75+ partner banks and credit unions and their regulators.'
Commenting on becoming Raisin's new service bank, Peter Stenehjem, CEO of FIBT, added, 'We've been a proud partner since June 2024 and are excited to see our Kavinu platform come to life as Raisin's new service bank. By reclaiming embedded payments from fractured middleware models, we're ensuring financial innovators like Raisin have the stability, efficiency, and speed they need for long term success.'
