The Fort

#218: Aaron Graft - Vice Chairman & CEO of Triumph Bancorp, Inc. - On a Mission to Change How Truckers Get Paid

May 19, 2022

Aaron Graft, CEO of Triumph Bancorp, shares the story of buying a bank during the GFC. They discuss the trucking industry, factoring technology, and the future of trucker payments. They also explore the challenges of acquiring a bank, removing bad loans, revolutionizing trucking payments, and going public.

01:27:54

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Episode guests

Aaron Graft

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Quick takeaways

Triumph Business Capital provides factoring services to the trucking industry, offering immediate working capital to truckers by buying their invoices at a discounted rate.

Triumph's technology-driven approach has streamlined trucking invoice payments, reducing inefficiencies and friction costs in the industry.

Triumph's ability to adapt to market demands and invest in technology has allowed it to revolutionize the factoring industry and become a game-changer in transportation finance.

Deep dives

Bringing Together FinTech and Banking: The Evolution of Triumph Business Capital

Triumph Business Capital, a bank that started in distressed real estate, recognized the benefits of being a bank and sought a bank charter. With the acquisition of a factoring company, Triumph found its niche in transportation finance. The company offers transportation factoring, where trucking invoices are bought at a discounted rate, providing truckers with working capital. Triumph's unique advantage as a bank allows it to use its low-cost funds to finance these transactions at a higher yield. The factoring business took off, and through reinvesting in technology, Triumph built an enterprise system that can handle billions of dollars in transactions per month. Triumph also created Try and Pay, an integration with freight brokers that simplifies and streamlines trucking payments. With its innovative approach and focus on the transportation industry, Triumph Business Capital continues to thrive and provide value in the financial technology space.

Introduction

4min

Acquiring a Bank Amidst Financial Crisis

20min

Removing Worst Performing Loans

22min

Visionary or Present-Focused: Striving for Solutions

2min

Revolutionizing Trucking Payments

18min

Differences between American Express and Visa, and Redesigning Banking for Truckers

2min

Analyzing Market Valuations and the Decision to Go Public

4min

Becoming the Best at Paying Truckers and Providing a Top-Notch Banking Experience

14min

Reflections on Entrepreneurship and Gratitude for Truckers

2min

Aaron Graft is the Founder, Vice Chairman, and Chief Executive Officer of Triumph Bancorp, Inc. and its subsidiary TBK Bank, SSB. He also serves as a Director and Vice Chairman of The Bank of the West of Thomas, Oklahoma. Before establishing Triumph, Mr. Graft served as the Founder and President of Triumph Land and Capital Management, LLC.

On this episode, Aaron shares the story of how he bought Triumph Bank as a 28-year-old during the GFC. Chris and Aaron deep dive into the trucking industry, how truckers get paid, and building factoring technology that will change the future of the trucking industry.

Follow Chris on Twitter: www.Twitter.com/FortWorthChris

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(01:14) - Aaron’s Backward Entrance Into the Banking Industry

(12:40) - Why did you say a bank should always generate cash flow?

(14:42) - What was your original thesis behind acquiring a bank?

(19:26) - Would you be approved to buy a bank if you were in the same situation again today?

(20:55) - What was your experience on Day 1 as the CEO?

(24:29) - How were you offloading assets during your first year of ownership?

(25:49) - Buying a Trucking Company

(32:02) - Why did it make sense to buy this business inside of a bank as opposed to another venture?

(37:31) - How have you scaled the business to where it is now?

(40:34) - Are you really a bank? Or are you a transportation company?

(42:53) - When did you start building technology for the bank?

(45:58) - Would you consider yourself a visionary?

(47:49) - The Back-Office Offering For Truckers

(50:26) - Is the trucking industry heading towards consolidation?

(52:24) - Do you help truckers determine what to charge?

(54:16) - Do you finance trucks?

(54:40) - How does Triumph Pay work?

(1:05:23) - How is Amex different from Visa?

(1:06:13) - Do truckers keep deposits with Triumph?

(1:07:00) - Do you trade like a bank or a fintech company?

(1:08:21) - Why did you go public, to begin with?

(1:11:10) - What are you buying these days?

(1:12:49) - Why are shipments slowing down?

(1:15:04) - How does the trucking industry change in size as more people buy things online?

(1:16:48) - Is there anything that keeps you up at night about the trucking industry?

(1:20:38) - Is there any other industry you could model what you’re doing in?

(1:22:21) - What do you predict for your company in 10 years?

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The Fort

#218: Aaron Graft - Vice Chairman & CEO of Triumph Bancorp, Inc. - On a Mission to Change How Truckers Get Paid

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Bringing Together FinTech and Banking: The Evolution of Triumph Business Capital

The Power of Banking and Factoring in Trucking

The Visionary Evolution of Triumph Business Capital

Revolutionizing Trucking Finance: Triumph Business Capital's Growth Story

Streamlining Trucking Payments with Structured Data

Triumph's Mission to Become the Invisible and Ubiquitous Payments Network

Remember Everything You Learn from Podcasts