Griffin, a UK Banking-as-a-Service (BaaS) Fintech, recently announced the completion of a key step in its application for a banking license.
Griffin has submitted its application to the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
John Weguelin, Griffin Chair, stated:
“This is a major milestone for the company and a direct result of the team’s hard work and thoughtful approach to building a sound internal structure, strong business model, and reliable technology platform. I and the Board are thrilled to support the team on its journey to seeking authorisation to become a bank.”
Griffin’s BaaS platform is designed “to provide Fintechs of all sizes with a one-stop shop for bringing their products to market, including access to all the UK’s payment rails, bank accounts, debit cards, an integrated ledger, and customer onboarding automation.”
The process for applying for a banking license requires companies like Griffin “to demonstrate that they meet key regulatory requirements and expectations, including effective governance arrangements, a viable and sustainable business model, adequate capital and liquidity and safe and secure infrastructure and operations.”
Few firms seeking authorization reach this stage: “only 28% of companies that held initial meetings with the regulators reached the application submission stage between 2013 and September 2019, according to the PRA and the FCA.”
Modern consumers demand digital-first finance, “creating a massive opportunity with the embedded finance market likely to reach $7.2tn by 2030, according to a report by Informa.”
However, the process for building and launching financial services software “is still long, expensive and built on outdated technology.”
Today, Fintechs are “forced to integrate disparate platforms across multiple partners with long onboarding times – stifling innovation and prolonging time to market.”
David Jarvis, CEO and co-founder of Griffin, remarked:
“From the beginning, we’ve known that a full-stack approach delivers more value to customers. Our platform brings historically siloed infrastructure components that all share a data model into a single platform, allowing fintechs to launch quickly without compromising on compliance or operational resilience. We’re incredibly proud to have reached this milestone in our journey to become a bank that our customers can build on.”
Tom Mendoza, EQT Ventures partner and investment advisor, added:
“Today, banks are not well equipped to support the seamless and contextual experience consumers have come to expect. There is currently a gap in the market for a developer-led, full-stack approach to technology and banking. Griffin represents the future when it comes to powering the next generation of fintech and embedded finance.”
The company aims to bring software, radical pricing transparency, and “an API-first approach to the UK financial services sector.”
Additionally, Griffin’s BaaS platform will “provide the power of SaaS technology and modern developer tools to the next generation of UK Fintechs.”
Amy Kirk, independent non-executive director at Griffin and current board member of Monzo and FCMB UK said:
“Griffin’s platform enables Fintechs to focus on what they do best—creating innovative products and experiences—not managing back-end infrastructure and compliance processes. Submitting this application brings the company one step closer to actualizing its ambitious vision.”
As noted in the update, Griffin is “making the bank you can build on.”
The company is developing “an API-first, full-stack Banking as a Service provider that lets companies focus on building products for their customers, not managing back-end infrastructure and compliance operations.”
Griffin was “founded by Silicon Valley engineers David Jarvis and Allen Rohner (who previously co-founded tech unicorn CircleCI), along with a team of banking and technology executives from the Bank of England – PRA, Nasdaq, Visa, HSBC, Form3, Monzo, SWIFT, GoCardless and more. Griffin is based in the UK and backed by investors EQT Ventures, Tribe Capital and Seedcamp.”