Security by Design: The Foundation of Rho's Banking Platform

Today, thousands of businesses – ranging from two-person startups to public companies – manage cash, control spend, and automate busywork with Rho.

When we first started, we had a vision of building a unified platform that merged the institutional-grade security of traditional banking with the amazing capabilities offered by modern financial technology to help make finance frictionless for organizations.

However, we knew that building a business banking platform wasn't just about creating innovative features or helping companies achieve more with less. At its core, banking is about trust – that Rho customers are confident that their capital is secure and accessible when needed.

Let us take you behind the scenes of how this commitment to trust guided our most consequential decision at Rho: selecting the right banking partner and technology model to build our banking infrastructure.

A Word on the Bank-Fintech Partnership Model

At the core of Rho's platform lies one of the most significant innovations in modern finance: fintech-bank partnerships. As Penny Lee of the FTA writes in this excellent primer, this model makes it possible for technology companies like Rho to offer banking services by partnering with licensed banks—combining the power of modern software with the security of regulated banking infrastructure.

Three critical decisions impact every fintech-bank partnership:

• The banking partner you select
• The integration model you pursue
• The core technological architecture you build

Each of these decisions demands careful consideration, but they vary in complexity. Selecting the right banking partner is straightforward yet critical—there's no room for compromise when building trust. The integration model, however, presents a more nuanced choice between two paths: direct integration with your bank or using Banking-as-a-Service (BaaS) middleware.

While BaaS middleware offers a faster path to market, recent headlines have highlighted its risks. Direct integration requires greater upfront investment and ongoing management, but it ultimately provides more control and stability. The con is that the direct integration model comes with higher standards—every product and feature you ship must meet your partner bank's rigorous compliance and risk requirements.

However, in an industry where trust is the true currency, Rho deliberately chose to directly integrate with a well-known, well-respected partner in Webster Bank, N.A., Member FDIC. We see these elevated standards as a competitive advantage, not a burden.

Why We Chose a Direct Partnership with Webster Bank

After explaining the critical decisions in fintech-bank partnerships, it's worth diving deeper into our choice of WebsterBank, N.A.—a nationally chartered institution with over $76 billion in assets and a century-long legacy of financial stewardship. As a publicly traded company with over 200 branch and ATM locations across the United States, Webster Bank maintains security protocols and compliance standards that match those of the largest financial institutions in the country. 

By partnering directly with Webster Bank, we've created a seamless connection between our technology and their banking infrastructure, providing multiple layers of protection:

• Your transactions flow directly through Webster Bank's systems, tested and proven at an institutional scale
• Your funds are held directly at a nationally-chartered bank backed by FDIC insurance and federal regulatory oversight
• Our security infrastructure is continuously monitored and updated to address emerging threats
• Every new feature or service is built on this same foundation of institutional-grade infrastructure

Beyond Banking: Rho Treasury

Our partnership model enables us to extend beyond traditional banking services. Through Rho Treasury, businesses can invest their non-operational funds directly in U.S. Treasury Bills – one of the safest investment options available, backed by the full faith and credit of the U.S. government. This service exemplifies our approach: providing sophisticated financial tools while maintaining the highest security standards.

Building for the Long Term

In today's fast-moving fintech landscape, it's easy to prioritize speed over security and growth over stability. At Rho, we've taken a different approach. By investing in institutional-grade infrastructure from the start and partnering directly with a leading national bank, we've built a platform that gives businesses the confidence to grow—not just today, but for years to come.

Want to learn more about Rho? We'd love to discuss how we can help support your business.