Fintech Focus: Zeta

How consumer neobank Zeta is transforming family finances through embedded finance

Sep 28, 2023

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September 28, 2023

We're showcasing fintech companies that are breaking new ground in the industry, and how they're using embedded finance tools to make an impact.

This month we are profiling Zeta, a financial app that helps families of all shapes and sizes to manage their finances in a new way. Zeta's product offers multi-user accounts to accommodate various family structures, from traditional families to divorced couples co-parenting, single parents with children, extended families, and more.

Innovative edge

Zeta’s core offering is a checking account that can have one to five account holders, each with a customized set of rules and permissions. Think of it like an operating account, but for a family. This flexibility allows family members to play different roles within the same account and use associated cards with different limits. Some are full owners, while others have limited access like children and companions, even the nanny.

Unlike banks and other fintech companies that focus on individual accounts, Zeta addresses the evolving nature of family finances, where multiple sources of income and outputs are common. Zeta's product is designed to cater to this changing landscape, enabling families to have better control and collaboration over their finances. Key differentiators are the ability to message each other about transactions within the app, and a shared payment calendar and spending trackers for transparent money management. The family can also set specific financial goals together, and save towards each of those targets.

“We are trying to design for what we think the future family needs, which is a way to manage multiple financial inputs and have access to all kinds of financial controls,” says Aditi Shekar, CEO of Zeta.

Key embedded finance data

Zeta began working with Treasury Prime’s embedded banking software platform to embed financial products in 2021. Since then the company has experienced significant growth, with active accounts growing quickly and card processing volume increasing exponentially.

How they’re using embedded finance solutions

Zeta offers just about every banking product that’s available through the Treasury Prime banking as a service (BaaS) partnership, which includes retail checking accounts and various payment rails like ACH payments, debit cards, wire transfers, checks, remote check deposit (RDC), and digital wallets.

Through Treasury Prime’s partner marketplace, Zeta is able to access auxiliary services like ATM network access, debit card issuance, debit card printing, and check issuing through pre-integrated partners.

“If you can get access to the off-the-shelf banking solutions that Treasury Prime offers and customize them for your user base, you can build something that feels bespoke,” Shekar says.

Embedded finance products built with Treasury Prime

“Utilizing BaaS helps you to stand up a more robust program from day one than you could stand up on your own. That's no doubt the biggest value,” Shekar says. “This is why we picked Treasury Prime. We leverage the bank network to get growth and expand into new products quickly. From there we can test our way into how our program should grow.”

Speedy API banking migration

Zeta was working with the Treasury Prime network when its sponsor bank shut down its fintech program. That meant they had to migrate all accounts to a new bank with a quick turnaround. Since they were already part of the Treasury Prime network Zeta was able to migrate over to a new bank in record time.

“We went live with Piermont Bank within about six weeks. It was the fastest implementation they've ever done,” Shekar says.

Zeta built specific features and tools to help their users migrate accounts easily. Shekar says some of their competitors wound up shutting down because they had to migrate to new banks multiple times and redo the integrations from scratch. Because Zeta was already working with Treasury Prime, which has a large bank network, they were able to pick another bank partner suited to their business model and quickly switch to that bank within the network using the same APIs.

Want to know more about partnering with multiple banks for risk mitigation and scalability? Download our full multi-bank guide.

‍Key embedded financial strategies for the future

Looking ahead, Zeta is shifting its focus towards automation, aiming to make managing family finances effortless. This entails simplifying tax management, paying bills promptly, and facilitating easier access to funds for various family members when needed.

Zeta is also exploring additive partnerships with other banking partners in the Treasury Prime network to expand its product offerings into higher-yield savings accounts, and potentially including a credit product in the future. (Note: product availability is dependent upon partner bank offerings.)

“If we become the operating account for the family, we then earn the privilege to do all these other financial jobs for you,” Shekar says. “We can set up your prenup, we can do your taxes, we can get your estate plan pulled together, we can help you with financial planning, we can help you with investing, we can help you with lending. There are all these jobs that we can grow into.”