During an uncertain economic environment, it is important for software companies to look at ways to keep revenues growing. SaaS may see increased pricing compression on subscription fees but can use strategies like embedded finance to create additional revenue streams while improving the efficiency of their SMB owner/operators.
Vertical-focused software companies are experts in supporting users in their specific domain. Practice management software makes a doctor’s office run more efficiently, and workforces are managed more effectively with field service management software. These platforms are in a unique position to provide tremendous value by streamlining financial operations as well. Embedded financial tools like lending, payroll, payments, banking, and card issuance are fantastic tools to improve those workflows.
The financial industry has been using these solutions for decades and it was only recently that we saw them come into the SaaS space. The reason for this is simple: it was too expensive and complex to do so before now. With cloud computing and new technology like low-code embedded finance, software can now offer these services themselves without having to go through an extensive development effort or pay expensive platform fees.