Obtaining a UK banking license is “not easy”, says Griffin, a British banking-as-a-service (BaaS) fintech company. The company is fully functioning as a British bank while raising $24 million in new capital.
Griffin is a BaaS startup founded in 2017. BaaS is a model in which BaaS providers integrate their banking services with the products and services of non-bank companies.
Griffin is funded by new backers MassMutual Ventures, NordicNinja, and Breega, and existing backers Notion Capital and EQT Ventures. In total, Mr. Griffin received approximately 50 million pounds (approximately $39 million) in funding.
Commenting on the latest round of funding, Sameer Dubey, Griffin's COO and CPO, said, “The current funding environment is not easy.”
The funds will be used to meet regulatory capital requirements and build services for customers.
NordicNinja and Breega are EU Article 8 funds, meaning they are “light green” funds that promote ES characteristics.
Dubey said Griffin is “fully committed to funding” sustainability.
As an example, he said Griffin has a dedicated sustainability manager.
Dubey added: “While many people pay lip service to sustainability, we have actually dedicated our scarce resources to it.”
In other news, Griffin has received approval from UK financial services regulators the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to lift restrictions, allowing Griffin to end its mobilization and fully It is now possible to establish a bank that is operational.
In March last year, Griffin was granted limited permission by the PRA and FCA to operate.
Asked whether lifting the ban was a formality, Griffin said certain regulatory requirements had to be met before the ban could be lifted, and Dubey said, “Nothing can be taken for granted. I cannot accept it.”
“We have to give regulators confidence that we can operate as a full bank,” he added.
Obtaining a UK banking license was “not easy”, he said.
He added: “It takes a lot of patience and a lot of capital.”
Griffin's BaaS platform can provide customers with access to all UK payment rails, bank accounts, debit cards, integrated ledgers, and customer onboarding automation.
We can offer our services all at once, or our clients can happily opt for services such as financial crime tools.
In the proptech space, its customers include technology payments company LettsPay, where Griffin provides solutions to landlords and letting agents to protect their funds.
Lead image: Griffin. Photo: No credit.
