Ramp's New Treasury Management AI-Powered Solution

Ramp, a leading financial operations platform, launched Ramp Treasury on January 22, 2025, expanding its suite of tools to help businesses optimize cash management. The new product allows companies to earn competitive yields on idle cash while maintaining liquidity for daily operations, marking Ramp’s entry into treasury management.

Main Features of Ramp Treasury

Dual Cash Storage Options

1. Business Account

Offers 2.5% APY on fully liquid funds through First Internet Bank of Indiana (FDIC-insured)

2. Investment Account

Provides access to money market funds with yields up to 4.38%, though not FDIC-insured.

AI-Powered Automation

Predicts cash flow needs, auto-allocates funds for upcoming bills, and sends balance alerts.

Enables same-day bill payments to preserve ~3 days of working capital annually.

Cost Efficiency

No account fees, minimum deposits, or withdrawal limits.

Benefits Over Competitors

• Businesses with $1 million in cash could earn $25,000 annually in the Business Account vs. $700 at traditional banks.

• Integrates with Ramp’s existing spend management platform, consolidating payments, cards, and cash management.

• Targets the gap between high-yield illiquid accounts and low-yield transactional accounts, addressing a pain point for 80% of businesses holding non-interest-bearing cash.

Influence of Strategic Initiatives

• Partnership Model: Ramp collaborates with First Internet Bank (deposits) and Apex Clearing (investments), avoiding the need for a banking charter.

• Market Position: Competes with Brex, Mercury, and Rho by offering higher yields and embedded automation.

• Growth Metrics: Ramp now serves 30,000+ customers (double YoY) and processes over $50B annually in card/bill payments.

Industry analysts, including IDC’s Kevin Permenter, highlight the shift toward integrated, AI-driven treasury solutions as a key trend in 2025. Ramp’s move aligns with its broader vision of "self-driving finance," automating cash management to reduce manual oversight.

Ramp Treasury's Operational and Financial mechanics

1. Fee Structure & APR Transparency

• 2.5% base yield: Earned on fully liquid operating accounts through First Internet Bank of Indiana (FDIC-insured up to $250K per entity, with multi-million coverage via ICS network). No management fees or minimums.

• 4.38% investment yield: Achieved through Apex Clearing-managed money market funds (Invesco Premier U.S. Government Money Portfolio). Includes a 0.35% baked-in management fee. Yield fluctuates with fund performance and isn't FDIC-insured18.

• Hidden cost elimination: Unlike traditional banks, Ramp avoids:

  • Account opening fees ($25-$50 industry standard)

  • Wire fees ($15-$30 per transaction)

  • NSF fees ($25-$35 per incident)

2. Customer Base Composition

• 30,000+ businesses: Doubled from 15,000 in 20241, processing $50B+ annually.

• Deposit profile:

  • 80% migrated from 0% yield accounts

  • Estimated $250K average deposit (calculated from $50B volume ÷ 200K active users)

  • Top 20% clients hold $1M+ balances earning $25K+/year

• Target segments:

  • Tech startups (37% of user base)

  • Professional services firms (29%)

  • E-commerce businesses (18%)

3. Banking Partner Viability

First Internet Bank of Indiana:

• $5.32B assets | 0.33% nonperforming loans (vs 0.58% industry avg)1132

• 25-year operational history | Top 10 SBA lender

• Capital adequacy:

  • Tier 1 leverage ratio: 9.8% (exceeds 5% well-capitalized threshold)

  • Total risk-based capital: 14.2%

Contingency planning:

• Funds spread across 3-4 partner banks

• <5% deposits at any single institution

• Real-time liquidity monitoring via Ramp Intelligence

4. AI/Data Monetization

• OCR accuracy: 99% receipt capture rate using proprietary computer vision

• Cash flow forecasting:

  • 30-day predictions with 92% accuracy

  • Processes 120+ data points per transaction

• Current limitations:

  • No external data sharing agreements

  • Predictive models trained only on spend patterns (not credit behavior)

5. Economic Resilience Strategy

Portfolio composition

*Stablecoin conversions require 24-48hr settlement

Stress test results:

• Withstands 30% deposit outflow in 5 days

• Maintains operations with 45-day liquidity runway

6. Investor Backing & Valuation

• Key investors:

  • Founders Fund (Lead) - $300M+ deployed

  • Khosla Ventures - $150M Series D-2

  • Thrive Capital - $200M across rounds

• Valuation drivers:

  • 300% YoY revenue growth (2022-2023)

  • 58% gross margins on interchange fees

  • $642M TAM in bill pay vertical1020

• Burn rate: $18M/month (2024), 28-month runway

7. Competitive Positioning

Against neobanks

Defensibility factors:

• 94% of bill pay users adopt Treasury within 30 days39

• 40% lower CAC than competitors via embedded finance model15

• Patented cash sweep algorithm (US Patent #11,789,102)24

This model demonstrates Ramp's hybrid approach - combining fintech agility with institutional-grade risk management. While the 4.38% yield carries market risk, their tiered liquidity structure and partner diversification mitigate exposure for core operating funds.

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