DETROIT, Jan. 21, 2021 /PRNewswire/ -- Autobooks, the small business payment and accounting services platform, accelerated momentum throughout 2020, signing a total of 46 new bank agreements, while also announcing deployments with TCF Bank and TD Online Accounting.
The company closed 7 bank contracts in December and another 4 in the first two weeks of January bringing its customer portfolio to 86 financial institutions, compared to 36 at the end of 2019. The Detroit-based fintech works directly with banks and credit unions to provide integrated receivables to small and micro-businesses; a segment which has been historically underserved.
Autobooks has been successfully deployed with financial institutions across the United States representing a diverse range of asset sizes, from $50 million to over $350 billion. "To be successful in the SMB market, you must be ruthlessly efficient," says Jeff Blackman, CFO at Autobooks. "Our payfac model embeds self-service merchant onboarding within internet banking, to provide a capital efficient way for financial institutions to acquire and engage business customers, both profitably and at scale."
Enabling small businesses (SMBs) to send digital invoices and accept online payments became especially important in 2020 as businesses coped with the ramifications of COVID-19, shifting en masse from accepting payments in-person to online. In an effort to help, Autobooks made its support team available 24/7 at the onset of the pandemic to help ensure business owners could successfully begin accepting online payments from their customers.
As a result, Autobooks has experienced record growth:
SMB user adoption grew 227% year over year
Total payment volume (TPV) grew 279% year over year
Total addressable market (TAM) grew 10X
"We deployed the Autobooks Invoicing and Account Management tool within our bank in a matter of weeks," said Melissa Eggleston, Chief Deposit Officer, EVP at nbkc. "On day one of launch, literally within minutes (22 to be exact), we saw one of our business customers sign up for Autobooks, send out an invoice, AND receive their first payment. This is indeed a game-changer!"
Recognizing the growing need to provide better service and monetize SMB relationships of all types, Autobooks expanded its integration in 2020 to provide its services to both business and retail accounts of a financial institution. Autobooks transaction analysis can help a bank identify a business operating in a retail or consumer account and offers a full suite of go-to-market services to help drive product adoption. These services dramatically reduce operational resource requirements, while helping to increase non-interest fee income for the financial institution.
"This past year firmly cemented how necessary these tools are for the survival and success of today's small business. Bundling invoicing and payment acceptance with your checking account will soon be as ubiquitous as bill pay and mobile remote deposit capture (mRDC)," said Steve Robert, CEO of Autobooks. "Businesses that embrace digital invoicing and online payments experience more consistent cash flow and reduced days sales outstanding (DSO). We believe most businesses would prefer to work with their bank, if given the opportunity. What we saw in 2020 was financial institutions beginning to reclaim the customer relationship and embracing partnerships to deliver value-added services and redefine expectations for the role they can play in their customers' future."
About Autobooks: Detroit-based Autobooks is a provider of small business banking solutions that make it simple to get paid online, manage cash flow, and automate accounting. Through Autobooks, financial institutions can provide a small business Ecommerce platform directly embedded within their existing digital banking channels.