Customer story
Tekion and Increase launch industry-first embedded banking for automotive dealerships
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Tekion Spend, built on Increase in partnership with Core Bank, provides the first fully embedded banking solution designed for automotive dealerships.
“Tekion Spend gives automotive dealerships a fully-featured bank account inside their existing system of record. It sees the invoice, the payment, and the ledger entry as one object rather than three systems reporting to each other after the fact. This is a natural step in Tekion’s mission to deliver end-to-end service for automotive retail.”
– Jamie Fox, GM of Fintech, Tekion
The opportunity
Automotive dealerships are operationally complex businesses. Every year, a single dealership makes hundreds of thousands of payments to various suppliers, vendors, and customers. Until now, dealerships have had to make those payments outside of the software platform they use to run the rest of their business. Dealership staff have to manage an external bank account and print thousands of checks annually to make payments. Most still reconcile payments manually in their dealership management system at month end.
How it works
Tekion Spend solves this by embedding banking directly into Automotive Retail Cloud (ARC). Dealerships can now:
  • Open a fully-featured, FDIC-insured bank account in their name
  • Store and earn money on their deposits
  • Send money over any US payment rail and see exactly where it is at every moment
  • Reconcile payments in real-time
  • Manage every rooftop from one account
Increase makes this all possible via API, offering bare-metal infrastructure that gives Tekion full access to the Federal Reserve’s data and capabilities, in partnership with Core Bank. Increase provides accounts and scaled accounts payable for Tekion Spend.
“Increase exists to help ambitious technology companies build great financial products. We help our users get to market faster than they imagined possible. Prior to building the full product that’s launching today, Tekion built an initial working prototype on Increase APIs in less than three weeks.”
– Jack Flintermann Reed, Head of Product, Increase
What’s next
Accounts payable is the first step in Tekion’s larger plans for embedded banking. Dealerships move billions annually just to manage their floorplans. They also move money in service, sales, finance and insurance, and payroll. Today, each of those flows ends in a separate portal. Through Tekion Spend with banking powered by Increase, dealerships can soon manage the vast majority of their funds flows from within ARC.

Tekion Spend is available to US ARC dealerships beginning in Q4.
Tekion Spend banking products and services are provided by Core Bank, Member FDIC. Technology services are provided by Increase Technologies, Inc. Tekion is not a bank.

Banking products and services are offered by Increase Bank, Grasshopper Bank, N.A., First Internet Bank of Indiana, or Core Bank (each, a Member FDIC bank and a “Partner Bank”).

Technology services are provided by Increase Technologies, Inc., a non-bank.

Where applicable, Visa® cards are issued by the applicable Partner Bank pursuant to a license from Visa U.S.A. Inc.

Eligible deposits held at a Partner Bank are insured by the FDIC up to the standard maximum deposit insurance amount. FDIC insurance protects against the failure of an insured bank only.