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Live Oak Bank Launches First Embedded Banking Partnership

Live Oak Bank has launched its first embedded banking partnership.

Powered by the bank’s in-house technology and a Finxact core, this offering enables software companies to directly deliver Live Oak banking products and services to their own customers, Live Oak Bank said in a Monday (June 3) press release.

For the customers of these software companies, this means they will receive banking services embedded in the software they already use, according to the release.

Live Oak’s first partner for this service is Anatomy Financial, an artificial intelligence (AI)-powered financial automation solution for medical, dental, digital health and healthcare billing companies, per the release.

“Anatomy is an exciting start to our embedded banking journey to serve customers across our verticals,James S. (Chip) Mahan III, chairman and CEO of Live Oak, said in the release.

The embedded banking solution offered by Live Oak will address unique financial challenges in the healthcare sector, such as insurance revenue that arrives weeks after a patient is seen and siloed systems that track what has been paid, Sasha King, co-founder and co-CEO of Anatomy, said in the release.

“By partnering with Live Oak Bank, we can offer unprecedented financial clarity to healthcare organizations of all sizes,” King said in the release. “We are thrilled to work with a group that shares our passion for customer centricity and innovation.”

Live Oak is a digitally focused, FDIC-insured bank that serves customers across the country, per the release.

PYMNTS Intelligence has found that embedded finance benefits consumers by allowing them to expand and personalize their interactions with their preferred brands, staying within their favorite brands’ ecosystems for a variety of interactions instead of needing to leave for another provider.

This streamlined approach also helps consumers by creating more convenient and seamless customer journeys, according to “How Nonfinancial Brands Can Benefit from Offering Embedded Financial Services,” a PYMNTS Intelligence and Galileo collaboration.

In another recent development in this space, FIS said May 7 that it launched an embedded finance platform designed for use by financial institutions, businesses and software developers.

The company’s “Atelio by FIS” platform can help any company collect deposits, move money, issue cards, send invoices, fight fraud, forecast cash flows and better understand customer behavior.