Tekion Spend offers the first fully-featured bank account native to an automotive dealer management system.
Tekion, Increase, and Core Bank announced embedded banking inside Automotive Retail Cloud (ARC). Built from the ground up as AI-native, ARC unifies all departments across more than 2,000 dealerships today. Tekion Spend, built on Increase in partnership with Core Bank, provides the first fully embedded banking solution designed for automotive dealerships.
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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.
Tekion Spend solves this by embedding banking directly into 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 is the exclusive provider of Tekion Spend for accounts and non-card money movement.
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 gives automotive dealerships a fully-featured bank account inside their existing system of record,” said Jamie Fox, GM of Fintech at Tekion. “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.”
“Increase exists to help ambitious technology companies build great financial products,” said Jack Flintermann Reed, Head of Product at Increase. “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.”
“Tekion has built an impressive platform and has a deep understanding of the operational needs of today’s dealerships,” said Lindsay Borgeson, President of Core X. “We are excited to partner with Tekion to bring even greater value to the automotive retail market and give their customers the confidence that comes from having their dealership funds held with a trusted, regulated financial institution. We believe this partnership will deliver meaningful value to dealerships and are thrilled about what we can accomplish together.”
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.
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