Summary
Software companies are embedding financial tools into their platforms to diversify and boost revenue, improve retention and expand market reach. From payments and lending to cash flow management, embedded finance transforms Software as a Service (SaaS) into full-service solutions. Learn why this trend matters and how First Internet Bank can help you innovate.
The New Frontier: Software Meets Finance
At First Internet Bank, we’ve always believed that innovation and financial services go hand in hand. Today, that belief is more relevant than ever. Software companies are evolving from tool providers into financial platforms. Whether it’s enabling payments, offering credit or managing cash flow, embedded finance is redefining how businesses serve customers.
Industry leaders agree, as it was once stated that every company will be a fintech company. This isn’t hype—it’s reality. Integrating financial services into software improves user experience, builds loyalty and creates a competitive edge.
Why Embedded Finance Works
Embedding financial tools directly into your platform delivers measurable benefits:
- Diversify and Boost Revenue: Monetize transactions, not just subscriptions. Embedded finance can increase revenue per customer by 2–5x compared to traditional SaaS models*.
- Enhance Retention: When users can pay, borrow or manage funds within your platform, they stay longer. Convenience drives loyalty.
Vertical SaaS: The Biggest Opportunity
Vertical SaaS platforms—built for industries like healthcare, construction or fitness—are perfectly positioned for embedded finance. These platforms often serve small businesses that lack access to traditional financial services. By embedding tools like invoicing, lending or insurance, you meet critical needs and expand your total addressable market.
What was once a niche product becomes a full-service solution, deepening customer relationships and driving growth.
From Reselling to Owning the Experience
Historically, software companies partnered with third parties to resell financial services. Today, fintech infrastructure providers make it possible to integrate these services directly. This shift offers:
- Better Margins: Own the experience, control pricing.
- Stronger Insights: Access real-time data for smarter decisions.
- Higher Lifetime Value (LTV): Invest more in acquisition knowing LTV is significantly higher.
Empowering the Modern CFO
Finance leaders are embracing embedded fintech to streamline operations and unlock insights. Real-time data, automated workflows and integrated reporting help CFOs manage complexity and scale effectively. As highlighted in a16z’s ‘The CFO in Crisis Mode’, modern finance teams need tools that adapt—and embedded finance delivers.
Final Thoughts
Embedded finance isn’t just a feature—it’s a foundation for growth. By integrating financial tools into your platform, you can:
- Unlock new revenue streams
- Deepen customer relationships
- Build resilient business models
At First Internet Bank, we’re proud to support this evolution. Our infrastructure and expertise help innovators thrive. Whether you’re building for small businesses or scaling a vertical SaaS platform, let us help you create something amazing. To learn more about our fintech partnerships, click here.
* www.plaid.com/accenture-report-embedded-finance/