PNC Teams With Koxa to Offer Embedded Banking

PNC has teamed with treasury platform Koxa to debut an embedded banking offering.

The integration, announced Monday (March 4), is aimed at PNC clients that use the Workday enterprise resource planning (ERP) system, the companies said in a news release.

The integration lets PNC’s corporate and commercial banking clients retrieve real-time balance and transaction information, and submit, approve and reconcile payments, all from inside their ERP system.

Howard Forman, head of digital channels for PNC Treasury Management, said the integration lets the bank “create efficiencies for our clients by delivering the power of our Treasury Management platform within the systems they use to run their businesses.”

The partnership is happening at a time when digital banking and open banking have led to an increase in collaborations between banks and FinTechs.

“The banks have the accounts, the decades worth of data, the regulatory structures and guardrails in place,” PYMNTS wrote last week.

“The FinTechs have the technology, the analytics and the user experiences. In the middle sit the platforms and the intermediaries that link the two. The regulatory landscape, itself fluid and dynamic, where the only surety is that there will be more regulation, may force a reckoning for the intermediaries.”

This report came about following the news that Treasury Prime, which operates a banking-as-a-service platform, has laid off roughly half of its workforce and would change its focus to sell directly to banks.

“Once its efforts had focused on FinTechs,” PYMNTS wrote. “And in that bid for connectivity, the company helped FinTechs and banks partner up.”

Banks have realized, as seen in this PYMNTS Intelligence report, that collaboration is essential. Upwards of three quarters of banks have said that working with FinTechs is essential to meeting customer expectations.

Nearly all of the financial institutions surveyed said that they use these partnerships to bolster their digital banking offerings.

“It’s a reevaluation of the question of build versus buy versus partner,” Igor Bazay, head of finance at Enigma said in an interview with PYMNTS in April.

“[W]hat this environment shows is that partnerships should be a part of that conversation to an extent that they were less so in the last couple of years,” he added.