The Rise of Banking Tech Platforms: Why Column's Strategic Position in Fintech Infrastructure Presents a Compelling Investment Opportunity

The global shift toward embedded finance—the integration of financial services into non-financial platforms—has created a $66 billion market opportunity. At the heart of this transformation lies a critical challenge: fintechs and enterprises need seamless access to banking infrastructure without the complexity of legacy systems. Enter Column Financial Technologies, a vertically integrated banking-software platform that has positioned itself as a linchpin in this ecosystem. By combining a national bank charter with modern API-driven technology, Column is not just keeping pace with demand—it's redefining the rules of the game.

The Power of Vertical Integration

Column's core innovation is its unified banking stack, which eliminates the fragmentation inherent in traditional Banking-as-a-Service (BaaS) models. Competitors like Unit or Synctera act as intermediaries between fintechs and sponsor banks, requiring partners to navigate multiple systems. Column, however, operates as both bank and tech provider, allowing fintechs to integrate once for access to FDIC-insured accounts, card programs, payments, lending, and compliance tools. This model reduces costs, accelerates product launches, and minimizes regulatory risk—a critical edge in an era of tightening oversight.

Growth Metrics Signal Momentum

Column's financial performance underscores its strategic success. In 2024, revenue surged to $55.1 million, a 126% year-over-year increase, with nearly half of this growth driven by non-interest income such as interchange fees and usage-based charges. Its largest partner, Mercury, alone contributed significantly after migrating from Evolve Bank following regulatory issues. Meanwhile, Brex—a leader in business lending—has scaled its services atop Column's platform, generating $319 million in 2023 revenue.

This growth is not just about volume but quality. Column selectively partners with “blue-chip” fintechs, prioritizing firms with strong unit economics and scalable business models. This approach minimizes risk while maximizing upside in a sector where regulatory missteps can derail entire operations.

Why Column Outpaces the Competition

Column's regulatory resilience and self-funded ownership structure further distinguish it. Unlike venture-backed rivals pressured to deliver short-term returns, Column's founder- and employee-owned model allows long-term focus on building infrastructure. Its in-house compliance team ensures partners avoid the pitfalls that plagued Evolve Bank, enhancing trust in an industry where reputation is fragile.

On the technology front, Column's API-first architecture enables fintechs to launch card programs in days rather than months. This speed is a magnet for platforms in high-growth sectors like vertical SaaS (e.g., construction, healthcare) and marketplaces, which are increasingly embedding financial tools to improve customer retention.

Risks on the Horizon

Despite its strengths, Column faces headwinds. Its reliance on Mercury and Brex—two of its largest partners—creates revenue concentration risk. If either firm stumbles, Column's growth could falter. Additionally, regulatory scrutiny of embedded finance is intensifying, with policymakers in the U.S. and EU debating stricter licensing and capital requirements. Column's proactive compliance focus mitigates this, but the risk remains.

Competitive pressures are also rising. Traditional banks like Cross River and Lead Bank are modernizing their tech stacks, while BaaS players may acquire banking licenses to replicate Column's model. To stay ahead, Column must continue expanding its service offerings, such as its nascent Lending-as-a-Service and treasury tools.

The Case for Long-Term Opportunity

Column's addressable market is expanding rapidly. Embedded finance adoption is accelerating as enterprises seek to monetize customer relationships through financial services. According to McKinsey, 70% of companies in sectors like retail and healthcare now embed financial tools, creating demand for infrastructure providers. Column's $66 billion TAM is within reach if it capitalizes on its first-mover advantage and selective partnerships.

For investors, Column's privately held status complicates direct exposure. However, its success is a leading indicator for fintech infrastructure plays like Plaid (acquired by Visa) or Marqeta (publicly traded). As embedded finance matures, Column's model could attract acquirers or pave the way for its own IPO.

Investment Takeaway

Column Financial Technologies is a rare breed: a fintech with both a banking license and a modern tech stack, operating in a sector with structural growth. Its vertically integrated model reduces costs, accelerates innovation, and mitigates risk—key advantages in a consolidating market. While risks like partner concentration and regulation linger, Column's strategic choices to prioritize quality over scale and compliance over speed position it to outlast competitors.

For investors, Column exemplifies the infrastructure plays critical to the future of finance. While direct investment may be limited today, its trajectory underscores the value of owning stakes in companies that power the embedded finance boom—whether through partnerships, acquisitions, or eventual public listings. In a world where banking is becoming invisible, Column is anything but.

Greg Ip's analysis focuses on macroeconomic trends and their implications for investment. This article synthesizes public data and industry insights to evaluate Column's strategic position.