Ready to launch your own podcast? Book a strategy call.
Frontlines.io | Where B2B Founders Talk GTM.
Strategic Communications Advisory For Visionary Founders
How Arc is Disrupting B2B Banking By Putting Data Over Relationships
Traditional banking’s relationship-driven approach to lending has created an uneven playing field for founders. While having the right VC backing might open doors to capital, it doesn’t necessarily reflect a company’s true financial health or potential. In a recent episode of Category Visionaries, Don Muir, founder and CEO of Arc, shared how his company is using technology to strip away this bias and revolutionize how startups access capital.
The Problem with Traditional Banking’s Approach
“These banks, these FIs, are relationship driven. They make underwriting decisions based on relationships with venture capital firms, more so than based on the fundamentals of the businesses that they’re underwriting,” Don explains. This system inherently favors companies with strong VC connections, regardless of their actual business metrics.
The impact? Many fundamentally sound businesses get overlooked simply because they lack the right relationships. “Arc on the funding side, is stripping out all of the noise and the hype and really leveling the playing field for founders across the country who may or may not be backed by the right VC,” Don notes. “It is irrelevant to our underwriting algorithm. We’re making decisions purely based on the fundamentals of the business.”
Building a Technology-First Alternative
Arc’s approach centers on using data to make faster, more objective lending decisions. Their platform ingests 24 months of financial data across multiple sources – from bank transactions to accounting data and subscription billing information. This comprehensive view allows them to evaluate businesses based on their actual performance rather than their relationships.
The results speak for themselves. “We do in days what takes a traditional bank weeks to months to do,” Don shares. This speed, combined with their focus on fundamentals, has driven explosive growth – “we’ve grown over ten x year over year,” according to Don.
Customer Obsession as a Growth Driver
While many companies claim to be customer-obsessed, Arc has operationalized this principle through specific, measurable actions. “We track KPIs internally against the number of touch points we’re having with customers specifically focused on improving their product,” Don explains. This isn’t just lip service – it’s built into their OKRs and planning processes.
This systematic approach to customer feedback has shaped their entire product roadmap. “Every product, every feature we have built and shipped at this company has been informed by what our customers are asking for,” Don notes. The result is a product that truly addresses the pain points of modern tech companies.
Challenging Financial Services’ Last Frontier
The banking industry has remained remarkably resistant to disruption. As Don points out, “Financial services is one of the last frontiers to truly be disrupted by technology.” He attributes this largely to regulatory capture – the close relationship between Washington and Wall Street that has historically protected incumbent banks.
But that’s changing. “Through the proliferation of banking as a service infrastructure and fintech point solutions… you’re seeing the financial services start to open up,” Don explains. This opening creates an opportunity for companies like Arc to compete by offering better products that meet the expectations of modern businesses.
The Future of B2B Banking
Don’s vision for the future is bold: “Fintech will dominate corporate banking.” He sees a world where technology-driven companies like Arc compete directly with traditional banks for large institutional clients, offering integrated solutions across banking, lending, and spend management.
This isn’t just wishful thinking. As Don notes, “The incumbent banks who dominate, who comprise 98% of share today, they can’t keep up and they, unfortunately, cannot innovate organically.” Their organizational structure and relationship-driven approach make it difficult to adapt to the technology-driven future of finance.
Arc’s goal is to build “the future software bank for the next gen business in the United States.” By maintaining their focus on customer needs and leveraging technology to make objective, data-driven decisions, they’re working to create a more equitable financial system – one where a company’s fundamentals matter more than its relationships.
Marketing & Communication Leader of Flourish Fi
Yasmin, Marketing & Communication Leader at Flourish Fi: Driving Financial Engagement with Innovative Tech
Co-founder and CSO of Sila
Shamir Karkal, CEO of Sila: $20+ Million Raised to Build the Money API For Fintech
CEO and Founder of InterPrice Technologies
Olga Chin, CEO and Founder of InterPrice Technologies: Over $10 Million Raised to Build the Future of Capital Markets Treasury Management
CEO of Rapyd
Arik Shtilman, Rapyd: $15 Billion Valuation (Unicorn Builders)
CEO of Multis
Thibaut Sahagian, CEO of Multis: $9 Million Raised to Build a New Category of Software Designed to Meet the Needs of Web3 Organizations
CEO & Co-Founder of Sydecar
Nik Talreja, CEO & Co-Founder of Sydecar: Over $16 Million Raised to Make Venture Deal Execution a Frictionless Process
CEO and Founder of Moov
Wade Arnold, CEO and Founder of Moov: $77.5 Million Raised to Build the Future of Embedded Payments
CEO and Founder of Plumery
Ben Goldin, CEO and Founder of Plumery: $4.5 Million Raised to Power the Future of Digital Engagement for Banks
CEO of Hopscotch
Reed Switzer, CEO of Hopscotch: $10M to Build the Future of B2B Payments For SMBs
CEO of NeoTax
Ibrahim, CEO of NeoTax: $13 Million Raised to Build the Future of Tax Automation
CEO of Wealth
Rafael Loureiro, CEO of Wealth: $16 Million Raised to Build the Future of Estate Planning
Co-Founder and CEO of Signzy
Ankit Ratan, Co-Founder and CEO of Signzy: Over $38 Million Raised to Build the Future of Digital Onboarding Infrastructure
Head of Growth of Puzzle
Helen Chong, Head of Growth at Puzzle: Collaborating with Founders – Insights for Effective Marketing Alignment
CEO & Founder of Finally
Felix Rodriguez, CEO & Founder of Finally: $110 Million Raised to Power the Future of Finance Automation
CEO and Co-Founder of Crowded
Daniel Grunstein, CEO and Co-Founder of Crowded: $6.4 Million Raised to Transform Nonprofit Financial Management
CEO & Co-Founder of Pagos
Klas Bäck, CEO & Co-Founder of Pagos: $44 Million Raised to Power the Future of Payments Operations
Founder and CEO of Clockwork
Fady Hawatmeh, Founder and CEO of Clockwork: Nearly $3 Million Raised to Make Financial Modeling and Cash Flow Forecasting Easy
Co-Founder of Volt
Steffen Vollert, Co-founder of Volt: $87 Million Raised to Build the World’s Leading Global Real-Time Payment Network
Steve Pomfret, CEO & Founder of Cygnetise: $8 Million Raised to Build the Future of Signatory Management
Co-Founder & CEO of Co-Founder & CEO
Rodney Reisdorf, CEO of Verivend: $3 Million Raised Transform Private Capital Transactions
CEO and Founder of Gr4vy
John Lunn, CEO and Founder of Gr4vy: $27 Million Raised to Build the Future of Payments Infrastructure
Founder and CEO of Green Check Verified
Kevin Hart, Founder and CEO of Green Check Verified: $16 Million Raised to Power the Future of the Cannabis Business
CEO of OnCorps
Bob Suh, CEO of OnCorps: $18M Raised to Help Large Financial Institutions Solve Operational Problems with AI
Co-Founder and CEO of April
Ben Borodach, Co-Founder and CEO of April: $40 Million Raised to Embed Intelligent Tax Experiences
CEO of Pngme
Brendan Playford, CEO of Pngme: $18 Million Raised to Support Financial Inclusivity and Unlock Economic Potential Across the Developing World
CEO and Co-Founder of Railz
Sohaib Zahid, CEO and Co-Founder of Railz: $15 Million Raised to Build to Accounting Data as a Service Category
CEO & Co-Founder of Basis Theory
Colin Luce, CEO & Co-Founder of Basis Theory: $20 Million Raised to Build the Future of Payments Tokenization
Marketing Manager of Embat
Magali Chapuis, Marketing Manager of Embat: Strategic Insights for Scaling Fintech Marketing Across Borders
CEO & Founder of Canopy
Matt Bivons, CEO & Founder of Canopy: $30M Raised to Build a Modern Servicing Platform for Scaling FinTechs
CEO & Founder of Uplinq
Ron Benegbi, CEO & Founder at Uplinq: Over $5 Million Raised to Transform SMB Lender’s Existing Credit Evaluation Process
VP of Growth of Wisetack
Iris Pfeifer, VP of Growth at Wisetack: Mastering B2B Marketing Through Sales Alignment and Product Strategy
Dan Beck, CEO & Co-Founder of 401GO: $14 Million Raised to Build the Future of Retirement Benefits for Small Businesses
Co-Founder and CEO of Abacum
Julio MartÃnez, Co-Founder and CEO at Abacum: $40 Million Raised to Build the Future of FP&A
Co-Founder and CEO of Stratyfy
Laura Kornhauser, Co-Founder and CEO at Stratyfy: $10 Million Raised to Power the Future of Financial Inclusion
CEO and Co-Founder of Zeni
Swapnil Shinde, CEO and Co-Founder of Zeni: $47+ Million Raised to Build the Finance Operations Category
CEO and Founder of Deserve
Kalpesh Kapadia, CEO and Founder of Deserve: $50 Million Raised to Build the Future of Credit Cards
CEO & Founder of Paystand
Jeremy Almond, CEO & Founder of Paystand: $100M Raised to Power the Future of B2B Payments
CEO of Anyday.io
Jonas Overgaard, CEO of Anyday.io: $4M Raised to Transform the Buy Now Pay Later Market
CEO of LODAS Markets
Brian King, CEO of LODAS Markets: $8.5 Million Raised to Power the Future of Alternative Investments
Founder and CEO of Pomelo
Eric Velasquez Frenkiel, CEO of Pomelo: $70 Million Raised to Build the Future of Remittance
CEO & Co-Founder of Fipto
Patrick Mollard, CEO & Co-Founder of Fipto: $16 Million Raised to Build the Future of Blockchain Payments
Co-Founder of OpenPath
Scott Dorey, Co-Founder of OpenPath: $25 Million Raised to Build the Future of Payments
CEO & Co-Founder of TransferGo
Daumantas Dvilinskas, CEO & Co-Founder of TransferGo: $125 Million Raised to Build the Future of Cross-Border Payments
CEO of Standard Practice
Steven Greene, CEO & Co-Founder of Standard Practice (Previously Nibble Health): $8 Million Raised to Bring the Fintech Revolution to the World Healthcare Payments
CEO of PolySign
Jack McDonald, CEO of PolySign: $50 Million Raised to Power the Future of Digital Assets
Co-Founder & CEO of Blockpit
Florian Wimmer, Co-Founder & CEO of Blockpit: $15 Million Raised to Power the Future of Crypto Tax Management
CEO & Co-Founder of Pier
Jessica Zhang, CEO & Co-Founder of Pier: $2.5M Raised to Build the Future of Credit Infrastructure
CEO and Founder of Orum
Stephany Kirkpatrick, CEO and Founder of Orum: Over $85 Million Raised to Build an API integration for Instant Payouts