What Order Should I Tackle My Embedded Fintech Roadmap In?

At Money2020 in October, I heard the same sentiment a surprising number of times: “I know I want to do payroll eventually, I just don’t know whether to prioritize it before or after accounting, lending, payments, and the insert-other-exciting-fintech-initiative that I think could be a great fit for my business.”

Tackling your fintech roadmap can feel overwhelming, with a seemingly endless list of possible features and services to integrate. However, one strategic decision can simplify this process and set a strong foundation for growth: prioritize embedded payroll.

Embedded Payroll as the Cornerstone

Payroll isn’t just another feature in your fintech suite — it’s the beating heart of your customers’ business operations. When you embed payroll into your platform, you’re not simply offering a payment tool; you’re integrating a critical business function. This decision is grounded in the concept of data gravity, which refers to the natural pull of vast amounts of data toward the systems that manage it. Payroll systems collect essential employee information, manage compensation, and ensure tax compliance, centralizing your customers’ most sensitive and critical business data. By positioning your platform as the keeper of this crucial information, you become indispensable — a trusted operating system for the businesses you serve.

Building Trust and Expanding Your Platform

Once you’ve established yourself as the payroll provider, your relationship with your customers deepens significantly. Trust is built over time when customers see that you can manage their sensitive payroll data reliably and securely. With payroll integrated into your platform, the path for natural platform expansion becomes clearer. Financial services often build on one another. For example, if a business trusts you with its payroll, it is much more likely to consider additional financial products such as expense management, benefits administration, lending, or accounting. These services can be seen as natural extensions of your core offering, making cross-selling smoother and more organic. Starting with payroll can also make building those integrations easier, because payroll makes you the source of key employer and employee data that is often a prerequisite for other expansion opportunities. In essence, starting with payroll creates a ripple effect that simplifies the adoption and increases attach rates of future fintech features.

Creating Stickier Relationships

Another compelling reason to prioritize payroll is the recurring nature of the service, as well as its widespread demand. First, every single business needs payroll — something that’s not true of other initiatives. Furthermore, unlike one-off transactions or sporadic loans, payroll is a regular, predictable function in every business. Every pay period, you have a chance to interact with your customers, reinforcing your presence and the value you bring. This frequent touchpoint transforms your relationship with customers into a continuous partnership. Over time, these ongoing engagements increase customer loyalty and reduce the likelihood of them switching to a competitor.

The Road Ahead: Leveraging Your Foundation

After successfully integrating payroll, your fintech roadmap naturally evolves into a broader ecosystem. With the heavy lifting already done, additional financial services become less daunting to implement and market. You can now focus on layering other embedded fintech products, confident that your customers already view your platform as mission-critical. This step-by-step approach not only minimizes risk but also ensures that every new feature adds value to your existing framework.

If you’re wondering what order to tackle your fintech roadmap in, starting with embedded payroll is a strategic choice that offers data gravity, fosters natural platform expansion, and cultivates stickier relationships. This cornerstone sets the stage for a seamless rollout of additional services, ultimately positioning your platform as the essential operating system for your customers’ business operations. By starting with payroll, you create a robust foundation that supports sustainable growth and long-term success.