Fintech will cause Vertical SaaS to explode (+revenue +profit)

When Vertical SaaS companies launch, they solve a key pain point for their vertical, and then their goal is to rapidly grow their customer base. Then they want to increase the value they provide and charge more money for their product. Typically this has been done by building additional premium features and charging for them. While that will continue, the ability to embed fintech changes the game.

A vertical SaaS can now offer banking, loans, payments, credit cards, payroll and many many more semi-commodity services which almost every SMBs needs and pays for. Buying it from the vertical SaaS is natural especially if it's integrated into the product.  

Done well thie will result in increased revenue by 2-5x versus just the subscription**

The immediate next implication is that the LTV of the client will grow and churn will like also go down further pushing up LTV. This will then mean that Vertical SaaS players will be able to further increase their acquisition spending to grow faster. This is just beginning and will Vertical SaaS companies becoming bigger and massively important players in the ecosystem.

Additionally, this will also now unlock new niche verticals that were previously considered to be too small. The added revenue from fintech meaningfully increases the Total Addressable Market (TAM).

It's an exciting time for Vertical SaaS the next decade will be massive. Join us on our journey.

**Source: https://www.fool.com/earnings/call-transcripts/2018/11/06/mindbody-inc-mb-q3-2018-earnings-conference-call-t.aspx