What was the impetus for its establishment? griffin?When was this?
griffinThe co-founders both have technical backgrounds and first worked together on CircleCI's founding team. David, griffinThe CEO of , who also worked on core banking systems at an API banking startup, first saw the need for greater technological integration between banks and their customers.
He said he had similar problems with Airbnb and was surprised by the size of the investment the company made just to manage its funds. It was obvious to David and Allen. griffinsaid there is a gap in the market for banks that prioritize infrastructure accessibility and efficiency and embed themselves into business operations. griffin The bank was founded in 2017 and is now fully operational.
Please tell us about your business. What is your business? What do you aim to achieve? Who are you working with? How do you reach your customers?
griffin is a technology-focused bank that works with clients to develop innovative and context-sensitive financial products for end customers. As a company, we are committed to a more equitable distribution of value. End customers receive a fairer deal, for example by giving customers more interest on their deposits. Currently, fintech and financial services companies have had to work with traditional banks that do not prioritize customer value or technology. The integration process is difficult and managing the infrastructure and connectivity is difficult.
We have built a banking and technology platform that is closer to the needs of businesses and can help them create value for their customers. One of the ways we achieve this is by allowing us to embed interest-earning accounts into other applications, opening up new revenue streams for our customers.
griffin is now a fully operational bank and is inviting UK businesses looking to provide financial services to their customers and directly build a licensed embedded banking provider to contact and get involved. Basics. This is our early access program, giving you the opportunity to work closely with our team and contribute to our product roadmap.
How has your business evolved since you obtained your banking license (limited) last year?
In March last year, the Prudential Regulation Authority (PRA) granted us a restricted license, essentially allowing us to start as a bank, but with limits on the payments and deposits we could hold. Over the past year, we have been working closely with a handful of fintech companies to validate our products in the real world and scale our operations. Our experience was slightly more complex than typical bank mobilization, as we work with customers to incorporate banking services and regulatory infrastructure into their products, rather than offering accounts directly to end users. These specialized applications truly add value because they typically encounter the end customer at the most relevant point.
As a fully operational bank, we look forward to expanding our partnerships with our customers and helping them continue to build and expand their innovative products. As mentioned earlier, we look forward to partnering with new and innovative companies through our early access program, Foundations.
Please tell me about the work culture in griffin
team of griffin We are united by a genuine desire to make a positive impact on the world around us, and we value the impact of our business. Our overarching principle of making a difference informs every detail of our culture as a company.we are working hard every day to create griffin We are a fun and supportive place for all team members, promoting kindness, empathy, thoughtfulness, and transparency. Although we mostly work remotely and are centrally based in London, we try to meet local grifflings whenever possible.
We also pay close attention to our environmental impact.From day one griffin has invested in a highly ethical culture with robust governance. We are a member of Tech Zero, which has publicly announced its commitment to minimizing the company's carbon footprint.
how is it griffin Funded?
We are extremely grateful to our network of angel investors and VCs who have always shown incredible faith in our vision and people. Last June we announced his £11m funding round led by his friends at MassMutual Ventures. griffin Accelerate its development while striving to become a fully licensed bank.
It also recently raised a further £19.1m in a funding round led by new investors NordicNinja and Breega, and existing investor MassMutual Ventures. The new funding will enable us to work with new customers across a wide range of sectors and continue to expand our product stack as a fully operational bank.
What do you think has been one of your biggest challenges so far and how did you overcome this?
This may be a boring answer, but I have to say, get a banking license. It's a very difficult process, but it's also a necessary process to achieve the core goals of our business. This process has been made even more difficult by the fact that we have disrupted models and built new kinds of banks for the modern digital age. We work with innovative clients to operate as a technology platform and build new business models that help them deliver value to their customers.It's convenient to think about griffin As the AWS of banking, we're building a bank that businesses can build on.
Our guiding principle throughout the banking licensing process was to overshare with regulators. Developing trust with regulators while implementing new banking business models is no mean feat. That's why we built our product stack with transparency as a priority and worked towards a full banking license.
Can you tell us more about the current state of the BaaS industry?
The BaaS industry is a well-established component of the fintech industry. Current industry leaders are focused on commodity services such as card issuance, onboarding, and payments.
We are currently seeing a shift from commodity-focused BaaS to value-creating BaaS that provide credit and deposit services. NatWest and Vodeno's partnership is a great example of this, showing that traditional institutions also recognize the value of offering their infrastructure as a service to business clients.
how griffin Do you answer unmet needs?
As I alluded to earlier, banks have the unique superpower of creating money out of money. griffinWith its BaaS platform, businesses can also benefit from this functionality, enabling new revenue streams and business models.
We have built an innovative full-stack BaaS platform that embeds risk management into regulated products such as savings accounts. This will enable companies to easily, quickly and cost-effectively develop and launch financial products powered by his FSCS. griffin Banking license, skills and expertise.
What does the future hold?
We now operate fully as a UK bank and work with a growing number of attractive businesses across the country. In particular, we focus on industries that have undergone digital transformation over the past decade, moving from paper-based operations to digital self-service platforms. However, these industries are still often ignored or underserved by traditional banks, and we are excited to work with them to bring innovative financial solutions to the market. Masu.
A good recent example is the residential real estate industry, which is still moving toward digital systems. Regulations introduced in 2020 have brought increased scrutiny to the sector, causing a shift in banks' risk appetite towards proptech providers, with many banks choosing to shy away from the real estate industry itself. We saw an opportunity to do the hard work of properly understanding this sector and its risk profile, and collaborate with proptech companies like LettsPay to bring new banking business models to the real estate industry. I did.
What is one piece of advice you would give to other innovators in fintech?
The most important thing I have learned from almost 20 years of experience in fintech is to carefully and clearly define your ideal customer profile and remain very focused on the determined parameters. The first definition should feel uncomfortably narrow. It may be unbearable to turn down attractive companies that want to work with you, but it is very important to adhere to the set customer profile and repeat this once the market fit of the product is proven. is. It is important not to rush it.
FinTech customers, especially those early in the market, form the basis for future product development and commercial strategy, so it's key for FinTechs to stay visible.
And finally, a more personal question. What is your daily routine or rule currently?
I don't participate in the typical founder's morning 10km run or fasting ritual. One routine that's stuck is blocking the first two hours of each day for reflection and thinking. Participate in occasional meetings as needed, but spend the first two hours of each work day not to solve problems or collaborate with your team, but to clarify the status of all responsibilities and to meet for short-term, This is for thinking about the medium and long term and taking on challenges. My own beliefs in the theme of our business and the direction of our industry.
I'm also a big advocate of helping people to help people. Whether they work for a competitor, are older or younger, or even if you disagree, it's always worth taking the time to talk to people and let them know what you really think. Striving to be useful, trustworthy, and trustworthy is a good use of your time, and you usually find a way to pay it back.
Adam Moulson is CCO. griffin.
