Most prominent Fintech Business Models that will rule 2024? (with examples)

4 min readNov 12, 2022

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How different fintech software monetizes their product by solving vertical-specific problems.

In 2012 Marc Andreessen Quoted that “Software is eating the world”.

I am sure you are already aware of SaaS (Software as a service) that can help you in communications like Slack, and Zoom and sales and marketing automation like Salesforce, Hubspot, and Marketo.

Similarly today all finance and accounting teams also need technology software to enable them to reduce monotonous and repetitive tasks.

For a deeper dive, I recommend taking the course.

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To help you understand better I have divided FaaS (Fintech as a Service) into Multiple categories.

1. Payment processing business model in the Fintech

Sending Money — There are some startups that are involved in the first part of the business of Sending Money by issuing Credit cards.
Example: Brex, RAMP, etc
Receiving payments- Startups that provide a Payment Gateway to accept payment on our behalf and settle it by the end of the month.
Example: Stripe, Paypal, etc

2. Spend Management business model in the Fintech vertical

AP/AR (Accounts receivable and payable) Software — These SaaS handle invoices, approval workflows, payments, and reconciliation with accounting systems.
Example: Tipalti
Expenses software — These SaaS helps you in Real-time expense management, Controlling spending limits getting reimbursed, etc.

3. Payroll & Benefits business model in the Fintech vertical —

Payroll is the largest expense companies incur is payroll and hence they need a product that can do onboarding, time tracking, retirement, insurance, etc

Enterprise resource planning (ERP) helps organizations manage their day-to-day business activities such as accounting, procurement, project management, etc
Example: SAP, Netsuite, etc
The human resource information system (HRIS) is the centralized repository of employee master data.
Example Workday,
A human resource management system (HRMS) is a software program that automates many business functions, including payroll and benefits.
Example Darwinbox

4. Equity & Financing

Treasury — (Betterment) — automated investments and managing Returns on cash.

Equity — Carta helps you easily Manage your Cap table and makes it easy to structure and issue stocks.

Credit — BlueVine helps you get cheap loans fast using your accounting information from Quickbooks, payment data from Stripe, sales data from Shopify, etc.

5. Accounting & Reporting in the Fintech vertical

Accounting software used by your business Xero, QuickBooks, NetSuite, etc can help you close your books faster.

Reporting — real-time visibility
data warehouse and BI tool to be able to pull data and slice as needed like PowerBI, Excel, and Tableau.

For a deeper dive, I recommend taking the course.

Fintech Product Management: Become a Fintech PM.

P.S. It costs less than a burger and offers incredible value if you’re aiming to break into fintech!

Would you like to get a detailed copy of these Fintech business models?

Buy my latest e-book on 31 Startup business models(320+ pages)🚀

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