Banking-as-a-Service · Use case

Embed accounts in a vertical SaaS platform

Short answer

Accounts inside your software let customers get paid and pay where they already work. The BaaS provider supplies segregated accounts or virtual IBANs, business verification and safeguarding. The first question is structural: are your users direct customers of the licence holder, or does money flow through an account you control?

What this use case is

Invoicing, payroll, property management, hospitality or practice software adds a business account so money movement lives next to the workflow it belongs to.

Who builds this

Vertical SaaS
Accounting and invoicing tools
Payroll software
Property and hospitality platforms

What your customer sees

  1. 1Taps "Open business account"
  2. 2Completes business verification
  3. 3Receives an IBAN
  4. 4Invoices are paid straight into the account
  5. 5Pays suppliers or payroll from the platform

How Banking-as-a-Service solves it

1

Embedded onboarding in your product

Embedded onboarding in your product

2

Business verification of the company and its beneficial owners

Business verification of the company and its beneficial owners

3

An account or virtual IBAN per customer, under the licence holder

An account or virtual IBAN per customer, under the licence holder

4

Incoming payments matched to invoices using the virtual IBAN or reference

Incoming payments matched to invoices using the virtual IBAN or reference

5

Outgoing payments and bulk payouts initiated from your workflow

Outgoing payments and bulk payouts initiated from your workflow

6

Reconciliation data written back into your own data model

Reconciliation data written back into your own data model

Want to have

  1. KYB including beneficial owners
  2. Per-customer IBAN or virtual IBAN
  3. Remitter and reference data for reconciliation
  4. Bulk payments
  5. Webhooks
  6. Embeddable or API-first onboarding
  7. Multi-user access for your customers' teams

Optional

  1. Business cards
  2. FX
  3. Open banking
  4. Cash sweeps or interest

Design decisions

Account ownership

Customer of the licence holder
Pooled account with sub-ledgers

holding client funds in an account you control may itself require authorisation; direct customer relationships avoid that but add onboarding friction. [TO CONFIRM: legal analysis for your markets]

Onboarding experience

Provider components
Fully custom

time to launch versus a seamless product

Monetisation

Subscription uplift
Interchange
FX
Interest share

what your customers value versus what your provider allows

What to put in your RFP

Structure

  • account ownership model
  • virtual IBAN support

Onboarding

  • KYB scope, beneficial owner checks, embeddable flows

Payments

  • incoming matching data, bulk and scheduled payouts, rails

Data

  • reconciliation fields, webhooks, reporting exports

Commercials

  • per-account pricing at scale, revenue-share options

Exit

  • data portability, customer migration
Add these to an RFP

How to evaluate providers for this use case

  1. 1Reconciliation data quality
  2. 2KYB completion experience
  3. 3Risk appetite for your customers' industries
  4. 4Pricing per account as you scale
  5. 5Revenue-share terms

Pitfalls

  • Holding customer funds without authorisation in a pooled model
  • KYB friction killing adoption
  • Reconciliation data that does not map to your invoices or payroll runs
  • Discovering late that the provider excludes some of your customers' industries

What providers will ask you

  1. Customer industries and sizes
  2. Expected accounts and volumes
  3. Where accounts sit in your product
  4. Who handles support

Other Finlane categories that cover parts of this

This use case is solved mainly with Banking-as-a-Service. These categories cover specific parts of it and can be tendered alongside it.

Frequently asked questions

Questions for this use case are covered in the category guide.

See the full cross-category stack for this use case

Other Banking-as-a-Service use cases

Scope embed accounts in a vertical SaaS with Banking-as-a-Service providers

Scope this use case