Innovation Through Partnerships: Januar x Banking Circle

Partnerships are critical. But not as critical as choosing the right partner.?

Four months ago, Januar broke records by securing a historic EUR 6 million funding round – the largest seed round in Danish history. In the same month, it received the first-of-its-kind Payment Service Provider License for crypto-related payments.??

None of this would have been possible without backing from the perfect partnership.?

Januar- the EU crypto gate??

You can’t sell anything - from sneakers to food to crypto - if you don't have an account, bank account or payment account to receive money from your customers.??

This was a huge problem for crypto businesses. The risk associated with crypto has made it notoriously difficult for these businesses to get bank accounts and partnerships with banks.??

That is, until Januar came into the picture.?

Founded in 2021 by ex-Chainalysis compliance experts, crypto entrepreneurs, and fintech veterans, Januar is on a mission to empower innovative Fintech & web3 companies to build a more inclusive and open financial system.?

This is done by allowing crypto brokers and institutions to receive and send payments like any other business.??

In essence, Januar is a payment institution providing easy, compliant, and secure access to financial services through their account and payment solutions. They do the risk assessment, they own the customer relationships, and most importantly, they have anti-money laundering obligations towards to the Danish FSA - shouldering, and significantly lowering the risk for the banks they work with.?

An essential partnership??

The thing is, you can’t be a payment institution without a banking partner.??

Januar needed a partnership with a bank to be able to issue accounts to their clients, and with the first-of-its-kind Payment Service Provider License for crypto-related payments, all and any Danish bank would have been obligated to say yes if asked.?

However, choosing a partner isn’t that simple.??

First of all, having a partner that actually wants to work with you is preferential, and secondary to that, you have to be on the same page; from products to digitisation and everything in between.?

That's when it became clear to Januar: Banking Circle was the perfect match.??

The process – the good, the bad, and the in-between??

Partnering with incumbents can prove difficult for many fintech's – primarily due to the fact that they work within different jurisdictions, and Januar was working with different API’s than most banks were used to.?

Due to this, and prior to receiving its license, Januar created a shortlist of banks they wanted to partner with. At the top of that list was Banking Circle, due to its high level of digitalisation and willingness to work with new players in the industry,??

As luck would have it, Banking Circle had already heard of Januar’s intent to achieve this license, and through Copenhagen Fintech, initiated direct dialogue with the company to assume a partnership once it was acquired.?

The partnership promised to be beneficial for both parties.

Since its incubation, Banking Circle had been recognised as a bank which utilised digitalisation and contributed towards transforming the payments industry - something which would be further proven as they became involved with Januar and building its world-leading solution.?

Meanwhile, Banking Circle's quality and flexibility would enable Januar to develop the solutions they needed at a fast pace, while still allowing the company to retain full control over the customer journey and build its own channels.?

So it was simple - Januar received its license, and the partnership became a reality.??

Reaping the benefits of choosing the right partner?

Four months ago, Januar launched its product in Denmark and secured a historic EUR 6 million funding round – the largest seed round in Danish history. The company is now moving money, has customers onboarded, and is working towards expanding the partnership with Banking Circle.?

Riding on their recent successes, Januar is currently awaiting an upgraded license which will allow it to operate within the entire EU market - leveraging more of the functionality that the Banking Circle platform offers - international accounts.?

Safe to say, it’s going well so far, and none of it would have been possible without this partnership.?

Advice for others?

While partnerships such as these seem idyllic and simple, it is important to note that there is one thing they require above all else - time.?

When asked what advice he had for startups entering similar partnerships, Simon Ousager, CEO of Januar, had one simple answer.

- When it comes to partnering with banks, it is important to set aside more time than you expect. That’s not a criticism of Banking Circle in any way, but it needs to be secure, it needs to be done properly - everything from accounting to data exports. There’re a lot of nuances, so definitely set aside more time than you initially think you need.?

The key take-away?

For most companies, partnerships are essential. But what is more essential is choosing the right partner - ensuring that you find someone who wants to work with you as much as you want to work with them, who you know you will work well with and vice versa, and most importantly, taking the time to make it work.?