Tekion, Increase, and Core Bank today 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.
“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 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 is available to US ARC dealerships beginning in Q4.
About Tekion
Tekion is redefining automotive retail with its end-to-end AI-native
platform purpose-built for the industry. By embedding AI into every
workflow, Tekion delivers intelligent automation, real-time insights,
and advanced decision support, driving efficiency, revenue, and modern
consumer experiences. As the first and fastest cloud-native platform for
automotive, Tekion brings OEMs, dealers, partners, and consumers
together through its revolutionary suite: Automotive Retail Cloud (ARC)
for retailers, Automotive Enterprise Cloud (AEC) for manufacturers and
large automotive enterprises, and Automotive Partner Cloud (APC) for
technology and industry partners. With AI-powered, cloud-native
technology, Tekion enables the most seamless, transparent, and
profitable retail experiences in the industry. For more information,
visit tekion.com.
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.
