UK’s newest bank Griffin secures £11m in funding round as it plots expansion
Griffin, the UK’s newest bank, has gathered £11m in a fundraising round just a few months after it secured its banking licence.
The funding round was led by venture capital firm Mass Mutual Ventures, with existing investors Seedcamp and EQT Ventures participating in the fundraise.
Griffin said the funds will go towards leaving the ‘mobilisation’ period, when it operates with a banking licence but under restrictions. It will also support its commercial activities.
“We’re fortunate to have found in MassMutual Ventures an investor with such conviction in what we’re doing,” said David Jarvis, chief executive of Griffin.
“This funding round not only validates our mission and strategy but also equips us with the resources to continue to deliver our innovative banking solutions to more customers.”
Griffin offers a Banking as a Service platform (BaaS). BaaS allows businesses to integrate banking services into their own offerings without having to set themselves up as banks.
For example, using BaaS a housebuilder could offer loans to buyers without needing its own banking licence.
Ryan Collins, managing partner at Mass Mutual Ventures, commented: “Griffin’s licence and BaaS platform represent unique capabilities in the UK market and enable it to become a pillar for the fintech ecosystem.
“Its comprehensive product suite is tailored to serve fintechs, payment services providers and brands looking to embed finance offerings,” Collins continued.
The completion of the funding round comes a few months after the digital challenger secured its banking licence. Since March, it has held a license to hold up to £50,000 in deposits.
Regulators still need to approve Griffin’s full banking licence before the company can handle unlimited transactions.