The Ultimate Guide to Embedded Finance for

B2B SaaS

Discover 5 ways to innovate your products and bring in new revenue. Scroll to see a quick rundown of the major sections.

Fill out the form to download the PDF.

Executive summary

It has been called a “win-win” for every player, and the “next big thing”

The advent of embedded finance is an innovation that promises to change the face of SaaS and enterprise companies in the U.S. And it’s already happening. Research shows the embedded finance market is valued at $54.3 billion in 2022 and is likely to reach $248.4 billion by 2032. 

SaaS companies stand to reap benefits.

Research shows that when SaaS companies embed financial services at the point-of-need by removing payment friction and inefficiencies, they can increase their revenue 2 to 5-fold, lower the cost of customer acquisition (CAC), while increasing customer lifetime value (LTV).

Embedded finance opportunities

for digital platforms

The B2B payments system is primed for an overhaul. The current setup is fragmented, inefficient, and risky. During the pandemic, this has led to payment delays, high costs, and other frustrations for many businesses, and the industry is ready for disruption. 

A Deloitte study finds that the thriving U.S. middle market (revenue from $50 million-$1 billion) has been underserved in its B2B payment needs and is a prime target for banking and lending services. 

Embedded finance is a key innovation that aims to fill this market gap.

Accenture identified it as an area of opportunity, as 41% of small and medium-sized businesses (SMEs) reported they would be interested in using banking services from a digital service provider, and 44% would prefer it in partnership with a traditional bank. Not only that, they would be willing to pay more for those services.  

SaaS and BaaS:

a winning combination

This presents an opportunity for SaaS companies in leveraging financial services to meet your end-users at their point of need, creating a more seamless in-app experience for them, and scaling with the businesses that use your platform. By embedding financial services into your app, you can gain a competitive edge that is responsive to changing end-user behavior, ultimately making a product stickier, increasing the value of current customers, and reducing overhead costs.  In short, embedded finance can help you turn transactions into relationships and revenue.

Treasury Prime builds the technology and transaction layers that make relationships between fintechs and banks possible.

Our API software is integrated directly with banks’ core systems, and all you have to do is plug into the API on the other end. Once you are plugged in, you can start to develop new products, offer banking tools and enhance your software capabilities.

How fast can you

get to market?

Launching embedded finance products on your platform is easier than it has ever been thanks to new banking as a service technology. Our BaaS platform gets you to production fast, and fintech and enterprise companies can launch in weeks, depending on their readiness. 

Launching a financial platform is a complex process, and you need a BaaS team with the widest bank network in the industry that can match you with the right bank that fits your needs.

Case study

Azibo Logo

Azibo is a SaaS platform for independent landlords. Working with Treasury Prime, Azibo was able to build a full-service commercial transaction-based banking system providing core functionality for landlords to collect rent and manage funds.

Through their own FDIC-insured bank account on Azibo, landlords can deposit and issue checks, send and receive payments and ACH electronic transfers, as well as use debit cards. Chairman and co-founder of Azibo Chris Hsu talks about how they were able to launch their embedded finance platform in record time with Treasury Prime.

We found Treasury Prime, and within a month of the first meeting we had a commercial agreement in place to build Azibo on top of your system. And three months later, we were in market with an FDIC-insured financial platform built on banking, so fast, It’s unheard of.

Evaluating BaaS partners:

the five questions you need to ask

Not all BaaS companies are the same. They may offer broader or narrower ranges of services, or work with a broader range or narrower subset of fintech partners. They may build on multiple banks’ systems, or just a few.

They may take an account-centric approach or a card-centric one. They may handle compliance differently. All these differences add up to a complex field that your fintech startup must navigate.

So how do you navigate this web? You do it by asking the right questions.

Here are the top 5 questions for assessing potential BaaS providers.
  1. What’s your approach to banking as a service?
  2. How many bank partners are you integrated with?
  3. How many fintechs have you brought to market, and who are they?
  4. What about risk? How do you handle compliance and regulatory concerns?
  5. What else makes your offering different from your competitors?

To see detailed use cases, product descriptions, key benefits and our answers to the five questions to ask potential BaaS partners, download the full ebook.