Treasury & Embedded Investing · Use case

Offer yield on customer balances

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Short answer

Idle balances can earn a return by moving into a bank savings product, a money market fund or government bills. Each route is regulated differently, protects customers differently and needs its own disclosures — choose the structure first, the provider second.

What this use case is

Idle balances can earn a return by moving into a bank savings product, a money market fund or government bills. Each route is regulated differently, protects customers differently and needs its own disclosures — choose the structure first, the provider second.

Who builds this

Neobanks
Business account providers
Payroll and marketplace platforms
Wallets

What your customer sees

  1. 1Opts in to earn on their balance
  2. 2Sees the rate or yield and its nature explained
  3. 3Moves money back when needed

How Treasury & Embedded Investing solves it

1

Customer opts in and completes required checks

Customer opts in and completes required checks

2

Balance above a threshold swept to the product

Balance above a threshold swept to the product

3

Yield accrues

Yield accrues

4

Customer or rules trigger withdrawals

Customer or rules trigger withdrawals

5

Funds settle back to the account

Funds settle back to the account

6

Statements and tax documents issued

Statements and tax documents issued

Want to have

  1. A clear product structure
  2. Regulatory coverage for your markets
  3. Opt-in and disclosures
  4. Sweep automation
  5. Settlement times
  6. Reporting

Optional

  1. Multiple currencies
  2. Business customer support

Design decisions

Structure

Bank savings
Money market fund
Bills

protection and liquidity versus yield.

What to put in your RFP

Product and structure

  • Product and structure

Permissions

  • Permissions

Journeys and disclosures

  • Journeys and disclosures

Liquidity

  • Liquidity

Reporting

  • Reporting

Economics

  • Economics
Add these to an RFP

How to evaluate providers for this use case

  1. 1Protection for customers
  2. 2Liquidity
  3. 3Disclosure support
  4. 4Revenue share

Pitfalls

  • Marketing a fund as savings
  • Liquidity mismatches
  • Paying yield on e-money

What providers will ask you

  1. Customer balances
  2. Markets
  3. Your permissions

Other Finlane categories that cover parts of this

This use case is solved mainly with Treasury & Embedded Investing. These categories cover specific parts of it and can be tendered alongside it.

Banking-as-a-Service

The accounts balances are swept from

Core Banking & Ledger

Balance and yield ledgering

Frequently asked questions

Other Treasury & Embedded Investing use cases

Embed retail brokerage

Let users buy fractional shares, ETFs or crypto from inside your product on a partner's licence.

Automate corporate treasury

Move operating cash between accounts, MMFs and short-term instruments via API, with reporting for finance teams.

Run a savings or goal-based product

Let users create savings pots with interest, funded by a licensed partner bank or fund.

Scope offer yield on customer balances with Treasury & Embedded Investing providers

Scope this use case