UK BaaS Griffin Seeks Authorisation To Become a Bank With the FCA and PRA

The UK-based banking-as-a-service (BaaS) fintech Griffin has submitted its application to the Australian Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) whilst it completes its application for a banking licence.

“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,” John Weguelin, Griffin chair, “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 way of bringing their products to market, including access to the UK’s payment rails, bank accounts, debit cards, an integrated ledger and customer onboarding automation.

The process for applying for a banking licence 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 authorisation reach this stage: only 28 per cent 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.

The road to becoming the de facto banking platform for fintech innovation

Modern consumers demand digital-first finance, creating a massive opportunity with the embedded finance market likely to reach $7.2trillion 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However, the process for building and launching financial services software is still long, expensive and built on outdated technology.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 GriffinDavid Jarvis, CEO and co-founder of Griffin
David Jarvis

“From the beginning, we’ve known that a full-stack approach delivers more value to customers,” said David Jarvis, CEO and co-founder of Griffin.

“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.”

Enabling embedded finance with a developer-friendly, self-service approach

“Today, banks are not well equipped to support the seamless and contextual experience consumers have come to expect,” Tom Mendoza, EQT Ventures partner and investment advisor, said. “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, 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.

“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” Amy Kirk, independent non-executive director at Griffin and current board member of Monzo and FCMB UK said. “Submitting this application brings the company one step closer to actualising its ambitious vision.”

  • Tyler is a Fintech Junior Journalist with specific interests in Online Banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.