Enhance your platform’s value with embedded banking and treasury services

Fintech platforms often launch with a single, high-value use case. By targeting a key business need, like rent collection for property managers, a platform can quickly build a dedicated customer base. 

However, customers increasingly expect fintech platforms to streamline multiple workflows. Rather than juggling providers, a property manager may opt for a unified platform that supports vendor payments and security deposit management in addition to rent collection. 

Without integrated services, even best-in-class point solution providers can struggle to compete with more comprehensive platforms. Fortunately, fintechs can differentiate their solution by embedding banking and treasury capabilities directly into their platform.

Let’s explore how embedded banking services position fintech point solutions to expand their functionality and unlock new growth opportunities.

Key takeaways

• Point-solution fintechs face rising competition from full-service platforms that offer more comprehensive functionality. 
• Embedding banking and treasury services helps point solution providers enhance their platform’s value for customers and strengthens their competitive position.
• Priority’s Banking & Treasury management platform, Passport, helps fintech point solutions enhance their offering with capabilities like improved fund collection and cash management.

Why are embedded banking services important for fintech point solutions? 

Many fintechs target a specific challenge. For example, a point-solution provider might support small businesses with payroll management or educational institutions with tuition collection, providing a focused solution to an operational need.

But as customers encounter more complex business demands, they’ll look for integrated solutions that meet their needs. If your point solution lacks key functionality, you risk losing relevance as customers consolidate their tech stack.

This creates several challenges, including:

Customer churn

Even if your solution solves a pressing problem, it’s not guaranteed to earn the long-term loyalty of your customers. If users can’t access capabilities like faster payments or opportunities to grow idle funds, they’ll likely explore other platforms.

For example, a small business using a payroll platform may migrate to a competitor that also offers virtual corporate cards for expense management. Over time, limited functionality can harm customer retention and slow long-term growth.

Untapped revenue streams

Limited functionality also leaves revenue on the table, for both your business and your customers. Without features like yield-generating cash accounts, users miss an opportunity to grow returns on idle balances as funds sit in your platform.

At the same time, your fintech may be overlooking strategies to generate revenue through embedded banking and treasury services, such as monetizing transactions to turn payment flows into additional cash flow. 

Losing ground to full-service competitors

Customers often prefer the convenience of a centralized platform for key financial functions like fund collection, payouts, and cash management. 

While your point solution may excel at its core task, it can still lose ground to all-in-one platforms that reduce vendor sprawl. To attract and retain new business, you need embedded functionality that enhances your customer experience.

How embedded banking and treasury services set fintech point solution providers apart

Embedded banking and treasury services can transform fintech point solutions into customers’ central hub for financial management. 

Consider a construction tech platform that helps contractors track project expenses. Contractors use the solution to generate and manage invoices, but rely on other platforms to collect payments, pay subcontractors, and allocate reserves for payroll and taxes. 

Here’s how embedding banking and treasury capabilities would elevate that construction tech platform’s offering:

Streamline fund collection and oversight

Invoice generation is only part of the equation. Contractors also need fast access to funds to maintain healthy cash flow and keep projects on track. 

By embedding banking and treasury functionality, a construction platform can simplify fund access while reducing back-office workload. For example, Priority’s Passport connects to a user’s processing accounts to enable same-day funding of closed batches. 

With this capability, contractors can access payments right away, even on weekends and holidays. Automated reconciliation also links deposits to transaction details like invoice numbers, improving contractors’ oversight of outstanding balances.

Organize and optimize fund reserves

Along with managing payments, contractors need to hold and organize funds for obligations like payroll, taxes, and equipment purchases. 

With embedded infrastructure, users can route portions of incoming revenue into dedicated sub-accounts, enabling clearer fund allocation and better visibility into project finances.

Additionally, contractors can put reserves to work. With Passport Cash Builder, users earn yield on idle balances through FDIC-insured savings or government-backed investment accounts and turn dormant cash into a strategic asset.

Enable direct payouts to vendors and staff

Timely payouts to subcontractors, suppliers, and staff are central to every construction project. When project schedules and vendor relationships are at stake, embedded functionality simplifies payouts. 

For example, Passport supports automated bill pay so contractors can meet vendor obligations on time and without manual processes. For added flexibility, users can easily link Passport debit cards to securely disburse funds. 

Additionally, transparent dashboards with detailed reporting provide visibility for contractors to track payouts, resolve issues quickly, and stay in control of project finances.

Make embedded banking and treasury services your competitive advantage

Fintech point solutions are under pressure to deliver more than single-use functionality, and the platforms that adapt will outpace the competition. 

Priority’s Banking & Treasury management platform, Passport, gives you the infrastructure to expand strategically. Our flexible API suite lets you easily embed capabilities that add lasting value for users, from streamlining reconciliation to accelerating cash flow. 

Ready to grow your platform’s impact? Let’s talk about how Passport can help.