Fractional CFO for embedded finance companies
Embedded finance businesses sit on top of regulated rails and account for them on behalf of distribution partners. Interchange share, BIN sponsor fees, FBO balances, programme reserves and the platform-versus-partner revenue split all have to be modelled cleanly. Revenue is the platform's share after sponsor bank, network and partner economics, and the line between corporate cash and end-user funds in FBO accounts has to be defensible in every reconciliation.
Programme economics are the centre of the role. Each card, account or payment generates a specific net contribution after sponsor bank fees, network costs, fraud and chargeback provisions, reserves and revenue share - and the model has to show that by programme, not in aggregate. Post-Synapse, BSA, reserve adequacy and bank examination readiness are ongoing CFO responsibilities, not annual events.
Flow provides financial modelling, FP&A and startup CFO advisory to embedded finance companies across BaaS platforms, card issuing and programme management, payments infrastructure providers, embedded lending and embedded insurance operators.
KPIs to track for "embedded finance" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
TPV
Net revenue
Take rate
Cards issued / active
Active programmes
Revenue per partner
Programme reserves
Sponsor bank cost
Partner concentration
Financial modelling for "embedded finance" startups
As fractional CFOs, we build KPI-driven financial models that are insightful and easy to maintain.
Financial modelling is both art and science - models must be robust, but also understandable, and useful for both internal planning and VC fundraising purposes. Hire a fractional CFO who knows how to handle both sides of the equation.
Programme-level P&L
Each card programme, account programme or embedded lending facility modelled with its own revenue share, sponsor bank fees, network costs and reserve requirements. The aggregate P&L hides programmes that lose money inside profitable ones.
TPV to net revenue bridge
Gross transaction volume routed through interchange share, scheme fees, sponsor bank charges and partner revenue share to the platform's recognised net revenue. Defends the ASC 606 principal-versus-agent position contract by contract.
FBO and reserve accounting
End-user funds in for-benefit-of accounts segregated from corporate cash, with programme reserves and rolling chargeback reserves sized off historical loss. Post-Synapse, the reconciliation has to be examinable on demand.
Partner concentration and revenue share
Net revenue and active card or account volume by partner, with the revenue share owed to each distribution partner forecast against contract terms. Surfaces the partners worth contractual protection and the ones where economics break.
Sponsor bank cost allocation
Sponsor bank fixed fees, per-account charges, per-transaction costs and compliance pass-throughs allocated by programme. Tells the board which programmes earn their sponsor bank slot and which need renegotiation.
Card issuing unit economics
Per-card revenue from interchange and FX against per-card servicing cost, fraud loss, network fees and reward economics. Cohorted by partner and end-customer segment, since a SMB card behaves nothing like a consumer prepaid.
Founders and investors we've worked with
We've supported winning builders across embedded finance and beyond.
Marcura
We acted as fractional CFO to Dubai-based Marcura, owner of maritime payroll and B2B payments platform MarTrust, advising on the strategic e-Wallet vendor selection and supporting product/finance integration.
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Bonart
We've worked as fractional CFO with Bonart, a Zurich-based independent Swiss strategic advisory and execution platform for PE and investor fundraising, providing long-term confidential valuation guidance.
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Lemonade
As a fractional CFO we performed a confidential valuation of Lemonade, the publicly listed full-stack insurer powered by AI and behavioral economics, supporting Elevator Fund's portfolio management.
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TBô
We acted as fractional CFO to TBô, a Zurich-based tech-enabled DTC male underwear brand, building a bottom-up financial / operating model with cohort-level KPIs and positioning the company for its next venture round.
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Onlogist
We acted as fractional CFO to Onlogist, a Hamburg-based online marketplace for last-mile vehicle transfer, providing confidential valuation guidance and operating model support.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across embedded finance and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for embedded finance startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
Explore our fractional CFO offering for similar verticals
We're a specialized fractional CFO to fintech companies.
Our fractional CFO experience spans across all fintech verticals.
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We know tech inside & out.
We provide fractional CFO services to companies operating across the entire tech.
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We help you scale by providing fractional CFO advice, through fundraising and a successful M&A exit.
VC fundraising for embedded finance companies
We help you prepare materials, reach out to investors in our extensive network, negotiate fair term sheets and structure the VC round.
Learn moreM&A for embedded finance companies
We advise winning tech companies on M&A exits, and over the years successfully executed numerous transactions with both financial and strategic buyers.
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