Because of its ability to make payments easier for customers, meet changing customer expectations, and improve customer relationships, it’s easy to understand why so many marketers are excited about embedded finance.
Before your business can add embedded finance solutions to your offerings, though, you need buy-in from your finance or accounting team. And the first question they’re likely to ask is how a complex new payments product will affect their day-to-day life.
The good news: Highnote’s ledger system will actually make your finance team’s jobs easier. Here’s a look at how.
Depending on the size and scale of your business, transaction reconciliation can be incredibly time-intensive for your finance team. Highnote’s ledger system significantly reduces that burden.
It does that by automating most of the transaction reconciliation work your finance team does so that all your team has to do is audit the record Highnote provides. Other embedded finance providers don’t offer this functionality.
In fact, they add a significant burden to an organization’s finance team by greatly increasing the number of transactions the team has to process and reconcile.
What’s more, Highnote’s ledger integrates with the tools your finance team already uses via API. It can provide real-time balances on every debit and credit entry across all of your accounts, including fees, revenues, and available funds.
With transaction reconciliation streamlined, your finance team will have additional availability to pursue strategic work that adds bottom-line value.
Highnote’s ledger system offers special benefits for online marketplaces, and companies that need flexibility in applying business terms across their various customer segments.
Let’s look at the case of an online crafts marketplace where tens of thousands of vendors sell their goods. Customers come to the marketplace to shop and buy, but each vendor has its own attributes, including product prices, shipping rates, loyalty programs, and more. The marketplace also has varied commercial agreements with each vendor.
When customers spend money with multiple vendors in a single transaction, the marketplace is responsible for handling the complex task of ensuring payment is properly distributed to each vendor.
Highnote’s ledger can take on that burden.
By operating on our ledger, all the marketplace has to do is onboard its vendors to the Highnote platform. Once that’s complete, the ledger handles payment processing. It also enables the marketplace to manage the ever-changing commercial terms between it and its merchants.
So on the back end of things, vendor management and payment verification are much easier. On the front end, the customer experience is greatly improved.
Just as a marketplace can use our ledger to manage various merchants, other businesses can use it to manage various customer segments.
Because real-life customer use cases rarely fit neatly into a given product segment, most businesses end up combining various use cases to handle any given customer account. Highnote’s flexible accounts and ledgers make this much simpler than it would otherwise be.
For example, a restaurant chain might use Highnote to enable multiple merchant accounts (like a DDA and a payments acquiring account). It could also support these accounts with payout ledgers configured to pay out employees’ earned wages – either to employee DDAs, virtual payment cards, or elsewhere via other payment rails.
The key benefit of using Highnote’s accounting structure and ledger is that our systems will make these and other use case combinations seamless and reconcilable.
Once again, this translates to a significant time savings for internal teams, whose role becomes that of auditor.
The rapid rise of embedded finance is changing customer behavior and expectations. Offering embedded finance payment options will soon be table stakes in most industries. The challenge for many brands will be finding a way to give customers what they want without introducing additional operational burdens that can undercut the value these solutions add.
Highnote’s ledger system does exactly that. By automating not only parts of net-new embedded finance products but also existing parts of the workflows of most finance teams, it improves efficiency throughout an organization.
For more insight into how our ledger system works – or how you can pitch it to your finance team – get in touch today.