As Embedded Finance Investments Rise, Arc Delivers End-to-End Banking and Money Movement Solutions from a Single-Source, Seamless, Scalable Platform
New Study Sheds Light on Growth, Benefits & Risks of Embedded Finance
AUSTIN, Texas, October 22, 2024--(BUSINESS WIRE)--Green Dot Corporation (NYSE: GDOT) today announced the launch of Arc by Green Dot, representing a comprehensive set of embedded finance, including banking as a service ("BaaS"), capabilities designed to fuel engagement and growth for businesses. Arc combines Green Dot’s secure banking and money processing solutions on a modern, single-source platform – delivering flexible, end-to-end solutions that can boost retention, value and expansion for companies at every stage of growth.
"Over the past several years, we’ve invested heavily in our platform, enabling us to build and deliver banking and payment tools more securely and efficiently," said George Gresham, CEO, Green Dot. "Introducing Arc to Green Dot’s portfolio of brands marks an exciting milestone as we continue improving and differentiating our embedded finance platform and capabilities, and as we power more companies with seamless banking and payment solutions."
A recent survey of 250 industry leaders and decision makers1 found 82% plan to increase investments in embedded finance over the next three years, with nearly a quarter (24%) saying they will significantly increase investments. The study also explored key benefits and potential risks of embedded finance, revealing:
Top drivers of embedded finance: nearly all decision-makers (98%) hold that embedded finance and BaaS are key drivers of revenue and growth for their businesses; a vast majority (91%) of leaders say it helps retain, attract or improve customer experiences; and 66% say it improves employee experiences and retention;
Top risks of embedded finance: half (50%) say increasing regulations and failure to comply is a top risk, while more than half (58%) see increasing regulation as a positive development for the industry. Security is also a top concern, with 48% citing security as a top risk that comes with investing in embedded finance.
Arc by Green Dot powers some of the world’s most trusted brands and thousands of other businesses at all stages of growth with seamless, secure and useful banking and payment tools and experiences. Among its most valued services and differentiators, Arc offers:
Direct integration with Green Dot Bank: providing partners with leading FDIC-insured banking products and tools, plus regulatory and compliance expertise, oversight and peace of mind;
Cloud-based, modular and scalable technology by design: flexible and configurable to meet a wide range of business needs and goals, and to adapt as our partners grow; and
End-to-end banking services and program management: supported by enterprise-grade APIs, giving partners access to comprehensive customer support, fraud protection, one of the largest retail deposit and ATM networks in the U.S., and much more.
"Embedded finance is transforming banking as we know it, offering consumers greater value and convenience while enabling businesses to engage customers in more meaningful ways," said Renata Caine, GM of Banking as a Service, Green Dot. "With Arc, our partners and their customers can benefit from the stability and security of a registered bank, decades of experience in banking and embedded finance, and a flexible platform that can adapt as they grow."
For more information on Arc and the embedded finance study, visit greendot.com/arc.
About Arc by Green Dot
Arc is the embedded finance platform of services featuring all of Green Dot’s secure banking and money processing capabilities designed to fuel value, loyalty and growth for consumers and businesses. Arc by Green Dot powers some of the world’s most trusted brands and thousands of other businesses with seamless, secure and useful financial tools and experiences.
Integrated with Green Dot Bank, Arc provides partners with leading FDIC-insured banking products and tools, plus regulatory and compliance expertise, oversight and support. The Arc platform is cloud-based, modular and scalable by design – configurable to meet a wide range of business needs and goals, and flexible to adapt as our partners grow. Arc’s end-to-end banking services are powered by enterprise-grade APIs and offer partners access to comprehensive customer support, fraud protection, the largest retail deposit and ATM network in the U.S., and much more. For more information, visit greendot.com/arc.
About Green Dot
Green Dot Corporation (NYSE: GDOT) is a financial technology platform and registered bank holding company that builds banking and payment solutions to create value, retain and reward customers, and accelerate growth for businesses of all sizes. For more than two decades, Green Dot has delivered financial tools and services that address the most pressing financial needs of consumers and businesses, and that transform the way people and businesses manage and move money.
Green Dot delivers a broad spectrum of financial products to consumers and businesses through its portfolio of brands, including: GO2bank, a leading digital and mobile bank account offering simple, secure and useful banking for Americans living paycheck to paycheck; the Green Dot Network ("GDN") of more than 90,000 retail distribution and cash access locations nationwide; Arc by Green Dot, the single-source embedded finance platform combining all of Green Dot’s secure banking and money processing capabilities to power businesses at all stages of growth; rapid! wage and disbursements solutions, providing pay card and earned wage access services to more than 6,000 businesses and their employees; and Santa Barbara TPG ("SBTPG"), the company’s tax division, which processes more than 14 million tax refunds annually.
Founded in 1999, Green Dot has managed more than 80 million accounts to date both directly and through its partners. Green Dot Bank is a subsidiary of Green Dot Corporation and member of the FDIC2. For more information about Green Dot’s products and services, please visit www.greendot.com.
1 Survey was conducted by Wakefield Research among 250 decision-makers regarding embedded finance, between August 22 and September 5, 2024, using an email invitation and an online survey.
2 Green Dot Bank also operates under the following registered trade names: GO2bank, GoBank and Bonneville Bank. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage up to the allowable limits.
