A one-stop shop with embedded finance

Crowded is a platform that helps nonprofits manage all of their financial needs in one place.

The need is substantial. Over 1.8 million nonprofits operate in the U.S., supporting institutions like universities, sports clubs, and professional associations. Collectively, they generate more than $3 trillion in annual revenue. 

Despite this, they remain largely underserved when it comes to financial services.

“Many nonprofits have struggled to access smart financial solutions,” says Daniel Grunstein, CEO at Crowded. “Often, it’s either too costly or they’re simply unaware of the available options.”

For Crowded’s customers, embedded finance has simplified their operations and integrated seamlessly into their workstreams.

To bridge this gap, Crowded set out to build banking solutions* tailored for nonprofits by partnering with TransPecos Banks and Unit. The partnership has been transformative—for both Crowded and the nonprofits they serve.

“When we conduct customer satisfaction surveys and interviews, it’s clear that our customers are thrilled with embedded finance,” says Grunstein. “Embedded finance has simplified their operations and integrated seamlessly into the many touchpoints of their workstreams." 

By addressing a critical gap in the nonprofit sector, Crowded has seen remarkable growth. In less than a year, they’ve doubled their customer base and facilitated hundreds of millions of transactions. Card transactions have more than doubled over the previous year.

What Crowded launched with TransPecos Banks and Unit:

• Tiered account structure tailored for multi-chapter organizations
• Instant account creation 24/7
• Online admin account handovers
• Automated transaction-usage-based fraud detection 
• Check writing and mobile check deposit
• Full online banking service suite, including, checking accounts, ACH payments, ACH debits, and debit cards (physical and virtual)
• Fee-free ATM cash access

The problem: spreadsheets, missed opportunities, and stress

For most nonprofits, financial management is chaotic, time-consuming, and stressful.

Nonprofits typically rely on funding from donations, grants, fundraising events, fiscal sponsors and partnerships. These payments arrive from a dizzying array of sources (e.g., cash, checks, PayPal, credit cards), often with unpredictable timelines. To track these finances for reporting, nonprofits rely on spreadsheets—a highly manual process that’s prone to errors. 

Once they receive their payments, most nonprofits use traditional bank accounts to store and move funds. But these accounts were never designed for their unique needs. In fact, many nonprofits still have to visit physical branches just to deposit checks or for account handovers, adding friction to their operations.

“Nonprofits often get bogged down by financial and governance challenges that take them away from their mission,” says Grunstein. “By launching embedded finance, we can help them manage their funds more efficiently and securely while remaining compliant with the required IRS filings, like 990.”

The solution: simplifying financial workflows

To launch embedded finance, Crowded evaluated several providers. Ultimately, they chose to partner with TransPecos Banks* and Unit for the following reasons:

• Simple and ready to launch. “Unit’s embedded finance program is both simple to launch and complete,” says Grunstein. “The platform is powerful for handling the complexities of providing financial services.” Since Crowded’s launch, Unit has expanded its offering with fully ready-to-launch solutions that enable tech companies to go live in as little as three weeks. 
• Strong onboarding and support. Timelines and onboarding processes were clear from the start. Whenever a team at Crowded needs support from Unit, they can reach the right person quickly.
• Outstanding documentation. Unit’s documentation is excellent. It’s easy for both technical and non-technical stakeholders to understand Unit’s capabilities and what Crowded can offer.

With embedded finance, nonprofits can manage their funds more efficiently and securely while remaining compliant with the required IRS filings.

By partnering with TransPecos Banks and Unit, Crowded launched digital checking accounts tailormade for nonprofits. Organizations can now easily open digital bank accounts, right from Crowded’s platform. They can also open and manage sub-accounts—a game-changing feature for multi-chapter organizations that oversee finances across different chapters. 

Members can also make purchases using Crowded Expense cards, eliminating the need for time-consuming reimbursement processes. By allowing organizations to track and monitor expenses in real time, these debit cards enhance financial transparency.

The road ahead

Looking ahead, Crowded plans to expand its compliance solutions. They’re also exploring ways to offer advanced reporting and analytics that will help nonprofits manage their financial health more proactively. 

“As we expand, Unit has been a powerful partner that allows us to serve a broad range of nonprofit verticals,” concludes Grunstein. “We’re confident they're the right partner.”

*Crowded Technologies Inc is a financial technology company and is not a bank. Banking services provided by TransPecos Banks, SSB; Member FDIC. The Crowded Technologies Inc. Visa® Debit Card is issued by TransPecos Banks, SSB pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.