BaaS Player Griffin Launches as Fully Operational Bank, Lands $24 Million

Griffin was granted approval from the U.K.’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to offer banking services in the region.

Along with announcing the banking approval, Griffin also unveiled it has secured a $24 million (£19 million) Series A extension round to fuel the launch of banking services.

Initially, Griffin does not plan to offer direct-to-consumer banking accounts, but will offer business bank accounts to help organizations manage their own finances and hold client funds.

U.K.-based BaaS fintech Griffin has been granted approval to launch as a fully operational bank. The company announced yesterday that the U.K.’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) granted Griffin approval to offer bank services in the U.K.

Fueling the launch is a $24 million (£19 million) Series A extension round. Crunchbase reports that the investment will boost Griffin’s total funding to $66.7 million (£52.1 million), while TechCrunch stated the total as $52 million (£40.6). The new round was led by MassMutual Ventures, NordicNinja, and Breega. Existing investors Notion Capital and EQT Ventures also participated. Griffin will use the funds to scale the bank and enhance its infrastructure.

With the proper approvals in place, Griffin can now offer banking, payments, and wealth management accounts to third party organizations. Interestingly, Griffin is not launching direct-to-consumer bank accounts, but will offer business bank accounts to help organizations manage their own finances and hold client funds.

The authorization comes after Griffin’s year-long mobilization period during which it was allowed to test and refine its products, build banking integrations, and develop its systems in preparation for the debut as a full bank.

“Today’s announcement is a culmination of years of hard work by the incredible team at Griffin,” said company CEO David Jarvis. “I’m particularly grateful to our pilot customers for placing their trust in us, and look forward to helping them continue to scale innovative products at the intersection of technology and finance.”

Founded in 2017, Griffin offers BaaS tools that include client onboarding, regulatory compliance safeguards, client money accounts, and payments. The company plans to launch branded debit, prepaid, and digital cards soon. Griffin’s direct banking tools, launched this week, include operational accounts, credit, and lending.

“As the UK’s first full-stack BaaS platform with a banking license, Griffin is the partner of choice for fintechs and brands to build innovative financial products with a seamless client experience,” said MassMutual Ventures Managing Partner Ryan Collins.

Photo by Asim Raza Khan

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