SMB Challengers: Rho Delivers Integrated Bank, Card & Payments Experience

There is a small business owner in one of every 3 US households. They have more complicated finances, spend far more money on financial services, and are often less satisfied. It’s a market ripe for newcomers, but until 10 years ago, there were no pure-play small-business financial challengers. But that has changed dramatically, especially since 2016.

One major players is Rho which offers a full-service banking and expense management offering. The company has historically targeted the larger size businesses within the SMB category, especially companies with 30 to 500 employees. (Initially, Rho had more narrowly targeted VC-backed startups with $1M to $30M in revenues. Source: Tearsheet podcast with Everett Cook, 6 Jan 2020).

These mid-market companies have substantial banking costs but aren’t big enough yet to get much attention at traditional large banks. For example, Mad Rabbit, an e-commerce company featured in a Rho case study, had been spending $2k per month on ACH, wire and account fees. Those costs dropped to zero at RHO, saving the company $25,000 per year.

There are thousands of business banking options for small businesses. But what makes Rho stand out:

1. Focus on larger startups and mid-sized businesses
2. Dedicated account manager for each client
3. Embedded commercial-grade accounts payable (i.e., can replace Bill.com)
4. Unlimited card accounts (virtual and plastic)
5. $75M in deposit insurance
6. Fee-free (including wires and ACH)
7. Integrated high-rate savings through American Deposit Management’s partner banks

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Product Features

Checking & Savings

• Dedicated account manager
• Free wires domestically and to 161 SWIFT countries
• Free ACH
• Free checks
• 1% FX fee across 67 currencies
• Up to 10 checking accounts per entity (EIN number)
• Competitive rate savings via partner banks with $75M FDIC insurance
• No monthly fees
• No minimum deposit
• APY of 0.01%
• Remote deposits of up to $250k allowed (higher limits possible)
• Flexible access controls across various employees and outside accountants
• Treasury services with yields up to 4.55%
• Capital markets access via third-party referrals

Accounts payable (billpay)

• Invoices sent to dedicated RHO inbox and auto-populated into the AP dashboard
• Payments due are automatically coded to match the clients accounting system
• Rho automatically assigns approvers for every invoice
• Records are automatically synced in real-time to QuickBooks
• Fee-free payment via ACH, wire or check

Expense Management

• Free: Avoid paying for a dedicated expense-management system
• Automated Policy Enforcement: Set spending rules to ensure compliance and prevent unauthorized expenses.
• Real-Time Receipt Capture: Submit receipts instantly via the Rho app.
• Multi-Level Approval Workflows: Set approval chains to ensure expenses are reviewed correctly.
• Instant Expense Submission: Submit expenses on the go with proper coding, reducing errors.
• Integration with Accounting Software: Seamless integration with major accounting platforms (QuickBooks Online, Oracle NetSuite, Microsoft Dynamics 365 Business Central, Sage Intacct).
• Employee Reimbursements: Manage out-of-pocket expense reimbursements efficiently, with direct manager approvals and ACH payments to employees’ bank accounts