What happened: The US infrastructure provider Unit has significantly extended its product offering, including a lending offering (Unit). Unit has a strong focus on SaaS providers. It works with companies such as Honeybook (a SaaS solution for service-based businesses) and Homebase (an all-in-one solution for hourly teams). Previously, the company offered only card and banking-related services.
My comment: The announcement mentions various new features, but the most interesting one for me is the lending feature. A standalone infrastructure provider that offers banking and lending is not that common. In Europe, providers like Solaris, Vodeno and Griffin either have had or might offer a combination of this offering, but none of them have a strong focus on SaaS like Unit does.
I view this announcement from two different perspectives: on the one hand, I completely get it. The US SaaS market is massive, and the pain points Unit describes are accurate. So, being the all-in-one provider for all things Embedded Finance (not just Banking) for SaaS companies makes a lot of sense. On the other hand, companies often roll out Embedded Finance features one after the other, and not in all cases is there a strong connection between banking and lending, for example. During this journey, companies will gain knowledge, expertise, and capabilities as they integrate different providers and launch fintech products. Therefore, I wonder if bigger SaaS companies are more inclined to select their specialised providers for each financial product and invest time and resources in integrating multiple best-in-class providers. What do you think?
