Summary
In June, the fintech and banking world lost a bright light: Barb MacLean. Barb wasn’t just a strategist or operator; she was a connector of people, ideas, and industries.. A vital force behind Alloy Labs and a co-host of Breaking Banks, she made complex ideas accessible, Embedded finance in small business banking challenged the status quo with grace, and elevated the human side of financial technology.
To honor her legacy, this week’s episode of Breaking Banks re-airs a powerful conversation between Barb, JP Nicols, and Alex Johnson. The topic, how embedded finance is quietly dismantling traditional business banking, is one that Barb cared deeply about. She brought her signature clarity and empathy to the discussion, helping listeners understand the seismic shift underway as platforms like Square, QuickBooks, and Shopify siphon deposits, relationships, and relevance away from banks.
In fact, the episode is more than timely — it’s a wake-up call As a result, banks are losing operational deposits at alarming rates, often without realizing it., as small business customers shift activity to digital-first platforms. Furthermore, Barb and her co-hosts walk through why this “silent attrition” is so dangerous—and what financial institutions must do to stop the leak.
Barb’s enduring influence lives on in the ideas she shared, the questions she asked, and the community she helped build. In curating her beloved fintech Playlist, she blended insight with soul, reminding us that behind every balance sheet is a person.
Meet the Experts
Barb MacLean was more than a fintech veteran, she was a builder of better systems and better humans.As SVP at Coastal Community Bank and founder of Velocita, she brought enterprise experience to the edge of embedded banking and data strategy.. Barb’s brilliance was matched by her generosity: through her weekly fintech Playlist, she amplified emerging thinkers and gave the community both a soundtrack and a compass. Her legacy continues through the ideas she sparked and the relationships she nurtured.
Alex Johnson, founder of Fintech Takes, brings analytical depth and industry foresight to every conversation. His frameworks on embedded finance, product-led growth, and vertical SaaS are required reading for anyone building or investing in fintech.
JP Nicols, host of Breaking Banks and Managing Director at Alloy Labs, guides this episode with the clarity and curiosity that made his conversations with Barb so impactful.
The Big Idea
Embedded finance is executing a quiet but devastating takeover of small business banking, while most banks are still banking on relationships alone.
As Alex Johnson puts it, small business owners aren’t shopping for financial products; Along with that they’re solving problems. Whether it’s paying employees, buying inventory, or getting a short-term loan, they want it done fast, seamlessly, and without logging into a dozen platforms. That’s why embedded finance is winning. Platforms like Toast and Shopify are bundling financial services directly into the operating systems business owners already use.
“Banks are assuming that customers will come to them on their terms. But they’ve forgotten they need to meet customers where they are.” — Barb MacLean
Relationship banking, once a strength, is increasingly insufficient. The loyalty banks think they have is often just inertia. And as Barb reminds us, inertia isn’t loyalty, it’s a countdown to irrelevance if not confronted.
Key Takeaways
- Silent Switching Is Costing Banks Real Money
Community banks are losing 12–18% of operational deposits annually to digital platforms—without the customer ever formally leaving. - Vertical SaaS Is the Trojan Horse of Banking
Platforms like Brightwheel, Toast, and ServiceTitan are embedding financial tools within industry-specific workflows, offering relevance banks can’t match with generic products. - Banks Must Rethink Product Design
Instead of asking customers to pick from traditional menus, banks should design solutions around actual jobs-to-be-done, like making payroll or bridging cash flow gaps. - Data Is the Canary in the Coal Mine
Unfortunately, most banks aren’t watching their data closely enough. The warning signs, thousands in recurring transactions to fintech platforms, are there, but often ignored. - Loyalty Must Be Earned in Context
Relationship managers are still important, but not sufficient. The customer journey is digital-first now, and product experience determines engagement.
Tools, Strategies, or Frameworks Mentioned
- Small Business Operating Systems (SBOS):
Horizontal and vertical platforms (e.g., QuickBooks, Square, Toast) that now include banking features like embedded lending, deposit accounts, and payments. - Embedded Merchant Cash Advance (MCA):
Square Capital’s model of lending against real-time payment streams reduces credit risk and increases convenience for borrowers. - “Jobs to Be Done” Framework:
Financial services must align with real business workflows, not abstract product categories. Barb and Alex stress redesigning around specific user pain points. - The “Paycheck Motel” and Zombie Accounts:
Terms used to describe dormant banking relationships where customers leave deposits but shift active engagement to fintech platforms. - Product-Led Growth (PLG):
Platforms grow by delivering immediate utility within core tasks, something banks can replicate by integrating more deeply with business software.
Final Thoughts
“She made fintech more human.” — Tribute from the Breaking Banks team
Barb MacLean showed us that insight and empathy aren’t mutually exclusive, they’re both required. As the banking world confronts disruption, her voice echoes louder than ever: pay attention to the human, not just the balance sheet.
We can honor her not only by listening to this conversation, but by acting on its insights, with boldness, humility, and heart.
Let’s keep her song playing.
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