EDITOR ’ S QUESTION
SMEs are in a challenging spot . As the market evolves , they must keep up , and there are many business technologies that support SMEs in improving their overall productivity , efficiency and competitiveness . But making a choice as to which technologies to adopt and build an understanding in can create a dilemma , especially in the current economic circumstances . Ultimately , SMEs should adopt transformations that nurture their specific goals , helping to guide them towards the best technologies and ROI .
The FinTech industry is rapidly growing and for SMEs looking to improve their financing and grow their business , the use of embedded finance can offer a wealth of opportunities . Embedded finance is the fastest growing sector within the industry , with forecasts of the entire embedded finance ecosystem expected to be worth over US $ 7 trillion by 2030 .
Embedded finance refers to a financial service that is ‘ embedded ’ inside a platform or application , which means that customers can access browsing , payments , lending and more – straight from the platform they ’ re using . This is something that is already normal in daily life . In fact , you ’ re using embedded finance every time you book an Uber or a Deliveroo , with the full customer process taking place in-app , from browsing to payment .
For business owners , embedded finance refers to traditional financial services , such as payments or lending , that are provided directly to them by nontraditional players i . e . not the usual high street banks . Again , this process takes place within a single platform and means being able to access capital faster and often on more attractive terms .
By using embedded finance services , SME owners can make decisions to financially sustain and / or scale their business . AI and Machine Learning have played a significant role in personalising these platforms , making the application process for funding more efficient . Embedded finance providers can also use this technology to swiftly identify the point of need for SME owners and offer solutions . This can be a tremendous relief for business owners who might otherwise risk rejection for finance or a halt in cash flow .
Business owners and entrepreneurs are in a unique position as they navigate the present market , thanks to embedded finance ’ s ability to supply a variety of financial services quickly . Common commercial challenges can be solved swiftly , and SMEs can quickly scale up by adopting the cutting edge innovation that embedded finance has to offer . For SMEs , it can be a great way to maintain business and get ahead of the curve , particularly as the current economy looks to recover . �
NIMA MONTAZERI , CPO , LIBERIS www . intelligentfin . tech
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