Building the Modern Payments Network for Truckers with Aaron Graft, Founder & CEO of Triumph Financial (NASDAQ: TFIN)

Mar 7, 2023

Aaron Graft, Founder & CEO of Triumph Financial, discusses building a modern payments network for truckers, the profitable nature of Triumph's factoring business, and the benefits of having a bank structure. He also emphasizes the importance of low cost of funds and the need for a streamlined payment process in the trucking industry. Additionally, the discussion touches on shrinking share count, efficient capital stewardship, and the significance of the trucking industry in the economy.

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Introduction

00:00 • 2min

Building a Bank Structure and Triumph's Factoring Business

02:05 • 15min

Competitive Market and Pricing Power in Financing for Truckers

16:36 • 3min

Building a Modern Payments Network for Truckers

19:46 • 15min

Time Allocation and Delegation in Multiple Business Ventures

34:39 • 2min

The Problems with the Current Trucking Payment System

36:15 • 30min

Shrinking Share Count and Efficiently Stewarding Capital

01:06:24 • 5min

The Underappreciated Aspect of the Bank and Trucking Industry

01:11:04 • 5min

Our guest on the show this week was Aaron Graft, the Founder, Vice Chairman and CEO of Triumph Financial. Just as the impacts of the Great Financial Crisis were waning, Aaron led a team of people who took over a failed bank to create Triumph. Aaron has been CEO since the beginning and has been instrumental in transforming the bank into a transportation-focused industry leader. Specifically, Aaron has helped turn what was a small factoring business into a high margin one that buys $1 billion in invoices from truckers every month. In recent years, Aaron has turned his focus to building a payments company that caters to all of the constituents in the trucking industry. In this fascinating discussion, we covered:

The benefits of having a bank structure despite Triumph not being a typical community bank;
How the company has built the factoring business over time and why it is so profitable;
The vision for Triumph Pay and the path to building it into something much larger; and
Why the company has been so aggressive in repurchasing its own shares

For full disclosure, Cove Street is NOT a Triumph Financial shareholder.

And without any further ado, here is my conversation with Triumph’s Founder, Vice Chairman and CEO, Aaron Graft. For more information about Triumph Financial, please visit: https://www.tfin.com/

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