How Swan Built a €20 Billion Banking-as-a-Service Platform – Insights from CEO Nicolas Benady

About this episode

Nicolas Benady, co-founder and CEO of Swan, has an impressive journey behind him: From founding the company in 2019 to building one of Europe's leading Banking-as-a-Service (BaaS) platforms that now processes over €20 billion in payments annually. In this Unicorn Bakery podcast episode, he shares his experiences building fintech infrastructure from the ground up.

The Beginning: 13 Years of Experience as Foundation

Nicolas brought 13 years of fintech experience when he founded Swan. This expertise helped him identify a crucial market gap: the need for a better BaaS platform. "Conviction and a clear vision were critical during the two years it took us to build Swan's infrastructure and obtain our e-money license," Nicolas explains.

The first two years after founding were spent exclusively building the technical infrastructure—a phase that required tremendous perseverance before first signs of success became visible.

Fundraising: Over €100 Million for Growth

Swan has raised over €100 million to date, including a €42 million Series B extension. Nicolas candidly shares that the first funding round was the most challenging. "Later rounds became easier thanks to the traction and reputation we had built," the CEO notes.

These funding rounds enabled Swan to scale the team to over 300 employees and drive international expansion forward.

Product Focus: SMBs and Developer-Friendliness

Swan deliberately focuses on small and medium-sized businesses (SMBs) and works closely with accounting and expense management software to deliver seamless banking services. The company helps other firms embed banking services like accounts, cards, and payments directly into their own products.

Building a developer-friendly product was particularly important to Nicolas. "We were inspired by the simplicity of platforms like Stripe," he explains. This focus on developer usability has proven to be a crucial competitive advantage.

International Expansion: Germany, Spain, and the Netherlands

International expansion brought Swan into markets like Germany, Spain, and the Netherlands. Nicolas describes the challenges of adapting to different regulatory environments and market dynamics while maintaining a centralized team in Paris.

This expansion required careful consideration of country-specific functions versus centralized processes—a balance that's crucial for success in new markets.

Leadership and Team Building: Trust and Cultural Fit

Nicolas placed great emphasis on building trust with his co-founders and strategically scaling the team. "Hiring for both skills and cultural fit is important," he emphasizes. To manage rapid growth, Nicolas brought on a deputy CEO to help scale the company.

In hiring interviews, he particularly watches for red flags and uses a structured framework for decision-making. His experiences with hiring mistakes have helped him develop better selection criteria.

The Numbers Speak for Themselves

With over €20 billion in processed payments annually and a team of over 300 employees, Swan has proven that Banking-as-a-Service is a viable business model. The platform enables companies of various sizes to seamlessly integrate banking functionalities into their products without having to acquire a banking license themselves.

Nicolas' journey demonstrates the importance of starting with a clear vision, finding the right partners, and continuously working on product development. His experiences offer valuable insights for all founders looking to break into the fintech space.