The Fintech Brief | Liberis Redefines SMB Lending

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Editor’s Pick 📌

📉 Traditional Lending Doesn’t Just Fail Small Businesses, It Makes Them Feel Like They’ve Already Lost.

At Money20/20 Europe yesterday, Liberis CEO Rob Straathof shared why embedded finance is about more than just convenience—it’s about restoring confidence for small businesses.

“When a small business applies for a bank loan and gets rejected, it hurts. We remove that fear by pre-approving them before they even apply.”

This is what embedded capital looks like when done right:

•  ✅ Real-time approvals based on platform data

•  ✅ Offers surfaced within the eBay seller dashboard

•  ✅ Repayments that flex with sales, no pressure, no guesswork

Rob puts it plainly: small businesses need confidence, not complexity.

Industry Trends & Innovation 💡

BANKING SOLUTIONS

Banking as a Service Explained in a Simple Guide for Business Leaders

Banking as a Service (BaaS) equips non-banking companies to offer embedded financial services via direct API access, transforming delivery and cost structures while increasing revenue opportunities. For businesses, this model enhances customer loyalty and presents cost-effective routes to providing financial services. BaaS's steady growth reflects its pivotal role in digital transformation across various industries, urging business leaders to leverage these platforms now for strategic advantages.

FINTECH TRENDS

Fintech Focuses on Embedded Finance, Platforms, and Data Monetisation in APAC

Fintech in the Asia-Pacific is evolving with a focus on embedded finance, platforms, and data monetisation, drawing interest from private equity firms who are adapting their approaches amidst regulatory shifts and digital ecosystem integration. Ben Clemens Balzer of Bain highlights the need for sustainable growth, regulatory alignment, and scalable business models to deliver long-term value. This is vital for investors seeking realistic opportunities with practical growth and enduring profitability in a rapidly changing market.

AI IN FINTECH

Pagaya And Upstart Integrate AI Into Fintech Lending For Greater Intelligence

Pagaya's AI-powered underwriting system has facilitated a $300 million bond backed by buy now, pay later (BNPL) loans, underscoring its significant role in fintech lending. Partnering with Klarna, Pagaya offers alternative credit assessments, broadening access while managing risk. This move highlights Pagaya's adept AI application in emerging consumer finance trends.

REGULATORY COMPLIANCE

Navigating Compliance in Shifting Political Contexts Within Financial Services

FINTECH INFRASTRUCTURE

SDK.finance Empowers Financial Innovation Through Modular Agility And API-First Approach

SDK.finance offers a modular, API-first fintech platform that enables banks and startups to launch financial products rapidly, supporting multi-asset operations with enterprise-grade performance. It provides flexibility in deployment, ensuring compliance and data sovereignty, and integrates technologies like AI and blockchain for enhanced functionality. By being adaptive, SDK.finance meets diverse needs across financial sectors and global markets.