Agentic AI’s Disruption of Retail and SME Banking

A NEWSLETTER AFFILIATED TO

EDITOR’S PICK 🌟

Liberis says finance shouldn’t wait. Neither should SMBs.

Why should small businesses pause their day, fill in endless forms, and wait on approvals? Finance should show up when and where it’s needed.

That’s the principle behind Pay with Liberis - embedded, intelligent funding offered right at the point of purchase. With it, SMBs can:
◾ Access capital at checkout, not weeks later
◾ Repay flexibly, tied to actual sales

👇 Watch why traditional finance for SMBs is broken

Industry Trends & Innovation 💡

BANKING INNOVATION

The End of Inertia: Agentic AI’s Disruption of Retail and SME Banking

Agentic AI is rapidly shifting banking from brand loyalty to outcome-driven selection, threatening banks’ and credit card companies’ revenue streams by optimizing customer deposits and spending in real time.

Consumer inertia is no longer an economic advantage as AIs automate money movement, potentially compressing margins by 30–50 basis points. Institutions must update their products, APIs, and engagement strategies to remain visible and valuable in this new, performance-based agentic economy.

OPEN BANKING REFORM

Crypto Companies Push for Blocking Bank Fees on Open Banking

Over 80 US crypto and fintech firms urged President Trump to block upcoming bank fees on consumer financial data access, warning this move would limit consumer choice.

These fees, set for September 2025, threaten small businesses and essential financial tools. If you’re relying on Open Banking or developing fintech products, keep a close eye on these regulatory changes—your access to customer data and ability to operate affordably are at stake.

FINTECH EVOLUTION

Embedded Finance and Hyper-Personalization Redefine FinTech

Embedded finance and AI-driven hyper-personalization are reshaping fintech by integrating financial tools directly into daily activities and tailoring services to individual needs.

These advances increase convenience and access, particularly benefiting underserved communities, but demand robust security, clear consent, and strong regulatory oversight to protect users. Staying informed about these changes enables consumers and businesses to better manage risks and opportunities in an increasingly digital financial environment.

FINTECH REGULATION

UK Slashes Fintech Red Tape – Why This Matters for Big Banks

UK plans to reduce fintech regulation, promising faster product launches and easier compliance for both startups and large banks. This is especially key for banks weighed down by legacy systems, as modular, cloud-based solutions can be integrated more easily under lighter rules. Expect real benefits if regulatory changes come with practical support like tax breaks and training.