Business

Griffin Bank Secures Banking License Paving the Way for Embedded Finance in the UK

UK-based Griffin Bank, a banking-as-a-service (BaaS) platform founded by former Silicon Valley engineers, has successfully obtained a banking license from the UK’s financial regulators, the Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA). The achievement comes approximately a year after initiating the license application process. In contrast, prominent UK fintech, Revolut, despite expressing intentions for three years, has yet to secure a banking license. Griffin Bank’s newly acquired license marks its transition from the ‘mobilization’ phase to becoming a fully operational bank.

Griffin Bank, founded by David Jarvis and Allen Rohner, former Silicon Valley engineers, positions itself as an API-driven platform offering a full-stack solution for fintech companies. The platform enables businesses to provide banking, payments, and wealth solutions with automated compliance and an integrated ledger. While Griffin is less likely to offer banking accounts directly to consumers, its focus is on serving businesses seeking embedded financial solutions, including savings accounts, safeguarding accounts, and accounts for holding client money.

The founders emphasize the importance of Griffin being a deeply tech-driven product, aligning with the evolving landscape of the UK banking sector, which has seen increased tech-friendly initiatives following the introduction of Open Banking standards. The shift towards ’embedded finance’ is gaining traction, allowing companies to integrate financial products seamlessly into existing services. This strategy enhances customer lifetime value, reduces churn, and creates new revenue streams for businesses that were previously not involved in financial products.

David Jarvis highlights the advantages of embedded finance and BaaS, stating that Griffin’s customers can have funds pooled into their ‘own bank,’ offering an alternative to larger banks that have limited such services. The company aims to capitalize on businesses seeking tailored financial solutions, leveraging existing financial relationships to embed additional services. Griffin’s recent funding success, raising $24 million in an extended Series A round led by MassMutual Ventures, NordicNinja, and Breega, with participation from existing investors, positions the platform for further growth and market penetration in the evolving landscape of banking-as-a-service.

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