How Complementary Embedded FinTech Can Close The Deal
Complimentary fintech product offerings, like lending, are a continuation of the evolution and growth of embedded financial services and an opportunity for additional revenue and value-added solutions to elevate your platform.
Jon has been in the SMB lending and fintech space since 2013. He recognized that the most exciting and impactful opportunity was to build a platform that would allow their customers to innovate on top of quickly bringing new products to life. Lendflow launched in 2019 and got their first customer in Q1 2020 in the middle of the pandemic.
Some of the qualities or characteristics of industries that are a good fit for embedded fintech include those with underserved businesses, those that have gaps in cash flow and those where there are large growth opportunities, according to Jon. A few examples include service-based business such as construction, transportation and personal services like barber shops, salons, restaurants and more.
Jon suggests that SaaS based software companies have an embedded finance strategic plan. This often means starting with embedded payments but planning for other products like lending, insurance, consumer-side lending, deposit accounts and credit cards.
According to Jon, one of the keys is to build off the synergies of each of the embedded products. He suggests thinking about the “second order effect” or how a second or third product works together to create additional value in the customer relationship.
Jon believes there’s going to be an explosion of innovation in this space over the coming decade. He is looking forward to a huge year in 2022 and the continued growth of Payrix and Lendflow.