The Fintech Brief Newsletter | “We’re Not Trying to Be Flashy—Just Useful”

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Editor’s Pick 📌

At Shoptalk, AI Took the Spotlight — But Embedded Finance Is Doing the Real Work

While most of Shoptalk was talking about what’s next, Liberis was focused on what’s quietly working right now.

In a conversation with Bobsguide, Liberis’ Per Dahlqvist made the case for embedded lending not as a flashy trend—but as the invisible infrastructure powering seller growth, platform loyalty, and capital access.

Here’s what stood out:

• Pre-approved funding based on live transaction data

• White-labeled lending that feels native to the platform

• AI that lowers costs, not just raises eyebrows

• Real impact for small sellers needing inventory or ad spend

It’s a reminder that while AI might dominate the headlines, embedded finance is quietly driving outcomes behind the scenes.

“We’re not trying to be flashy,” Per said. “We’re trying to be useful.”

📚 Want the full story? Read the Q&A with Per Dahlqvist on Bobsguide

Expert Opinion ✍️

Fintech’s Best Answer to Fiscal Volatility

As U.S. debt warnings intensify and fiscal policy enters uncertain territory, a deeper shift is playing out in fintech: embedded finance is no longer just about improving user experience—it’s emerging as a critical buffer against economic volatility.

While most headlines focus on embedded finance as a convenience play (think Uber’s instant payouts or Shopify’s merchant banking tools), the real story lies in its structural repositioning of risk, access, and revenue. For fintechs, this isn't just about integration—it's about insulation.

In an environment where traditional financial institutions are tightening credit lines, scaling back lending, and recalibrating their risk models, embedded finance offers a different path: decentralizing distribution, tapping niche consumer segments, and monetizing financial services where the customer journey already exists. This doesn’t just drive loyalty—it mitigates exposure.

Take buy-now-pay-later (BNPL) models. As macroeconomic pressure climbs and interest rate environments fluctuate, demand for flexible payments grows. But the winners here won’t just be providers—it’ll be the platforms that own the checkout and shape the consumer experience. Embedded finance gives fintechs a shot at reclaiming the margin lost to big banks—and the data.

The more overlooked play? Infrastructure. As regulators crack down on shadow banking and third-party data usage, fintechs need to move fast from MVP to maturity. Those investing in embedded finance not as a feature—but as a regulated, compliant ecosystem—will be best positioned to partner with platforms that want embedded and bulletproof.

For fintech leaders, the question isn’t whether to embed finance—it’s how to do it with strategic upside. That means:

• Embedding where there’s frequency, not just novelty.

• Prioritizing sectors with compressed margins but high financial churn (e.g., creator economies, gig work, B2B marketplaces).

• Thinking like an infrastructure company, not a product shop.

Embedded finance isn’t just a response to consumer demand—it’s an answer to systemic fragility. Fintechs that treat it as a long-term operating model, not a distribution trick, will weather fiscal shifts and own more of the financial stack in the process.

Live from ETA Transact 📍

From the Show Floor: What’s Moving the Needle at ETA Transact 2025

💡 Here’s what we’re hearing again and again:

• Embedded finance is going mainstream. From new lending APIs to full-stack integrations, it's becoming a baseline expectation across verticals.

• AI is shifting from hype to utility. Think smarter underwriting, unstructured data analysis, and cost reduction—practical use cases that are improving access to capital.

• Data is out. Insight is in. Microsoft’s keynote cut through the noise: “Don’t just show charts. Surface the one thing your business needs to act on.”

• Payments are getting personal. Leaders like Zip Co are focusing on financial flexibility for real-world consumers—paycheck-to-paycheck users buying groceries, school supplies, and transport.

🔎 Sessions to watch on Day 2?

Innovations in B2B payments, platform partnerships, and alternative credit models for SMBs are topping the agenda.

As one attendee put it: “ETA is where the ecosystem syncs.”

Industry Trends & Innovation 💡

REGULATORY MODERNISATION

Adapting to Regulatory Changes in Fintech with Evolve Bank & Trust

As the regulatory landscape evolves, financial institutions and fintechs alike are prioritising strong compliance foundations. Evolve Bank & Trust emphasises that embedding regulatory readiness from the start is now essential—not only to maintain trust, but to ensure uninterrupted service across diverse customer bases. For acquirers and PSPs, staying ahead of these changes is key to avoiding disruption and building resilient partnerships.

FINANCIAL TECHNOLOGY

Banking-as-a-Service Market Expands with Integrated Finance Solutions for Growth

The global Banking-as-a-Service (BaaS) market is expected to quadruple in size over the next decade, driven by API, AI, and blockchain innovations. For acquirers and banks, this rapid shift presents both a competitive threat and a collaboration opportunity. Platforms that once offered basic payments are now embedding banking directly into their product experience—creating new service expectations for financial partners.

BANKING INNOVATIONS

🎙️ Vodeno BaaS Empowers Metro AG's Embedded Banking Solutions

European retailer Metro AG is now offering integrated banking services through Vodeno’s BaaS platform. This partnership enhances Metro’s ability to support B2B customers with tailored financial tools—without becoming a bank themselves. Their approach provides a blueprint for traditional institutions looking to embed services into non-financial platforms while maintaining back-end control.

EMBEDDED FINANCE OPPORTUNITIES

Harness Revenue Growth With Embedded Finance For ISVs

Integrating embedded finance into software solutions is crucial for ISVs aiming to expand revenue and foster customer loyalty. By offering flexible lending, alternative payment methods, and seamless banking integrations, ISVs can differentiate themselves and achieve significant market growth. Embracing this trend now will position businesses advantageously by 2030.

EMBEDDED FINANCE

Embedded Finance Boosts SMB Loyalty Through Seamless Financial Integration

For SMBs, time-to-cash matters. Platforms offering embedded financial solutions—like early payout programs or tailored lending—are winning loyalty and increasing engagement. These services bypass legacy systems, giving sellers faster, more personalised options. Payment providers that integrate these features can strengthen merchant relationships and drive long-term value.