Raisin is not a bank and your money is always handled by a federally regulated financial institution — whether in transit, stored in the Cash Account, or in an account at a partner bank. The Custodial Bank keeps records of all funds deposited through the Raisin platform for added security.
In the unlikely event that Raisin goes out of business, the custodial banks would lead a process to determine whether our partner banks and credit unions decide to self-custody your funds and therefore add you as a customer of their institution, or to otherwise return your funds to your external linked bank account. The custodial banks have access to complete records of the customer relationship including all information necessary to determine each customer’s deposit position at each partner bank and credit union on the platform, as well as to facilitate return of funds if necessary.