Could this be the future of small business financing?

After leading roles at Intuit and Square, Luke Voiles is shaking up the business financing space with exciting embedded capital platform Pipe.

In this insightful interview, CEO Voiles speaks to Ali Paterson about Pipe’s embedded financial services product, aimed at bypassing traditional, cumbersome funding methods.

We get his thoughts on the increase in sector specific software solutions and why he’s passionate about supporting small businesses. There’s some exciting plans in the ‘Pipe-line’ too. Hear about all this and more in this FF Virtual Arena profile.

To explain what Pipe really offers we first need some context and Voiles helps with this. He goes through the evolution of funding for small and medium-sized businesses (SMBs), contrasting traditional methods with Pipe’s innovative approach. Traditionally, securing funding required businesses to present two years of audited financial statements and tax returns to banks, a process that was lengthy and required a proven history of consistent performance. This method, exemplified by SBA loans, made it difficult for newer or smaller businesses to access necessary capital, something he’s very passionate about, given his heritage.

His dad was a small business owner himself, and this along with the experiences that many small businesses faced during the pandemic has been a big part of why he’s taken this role.

We’ve seen numerous evolutions in funding since those days and more recently, companies like Square Capital, Stripe Capital, and PayPal Working Capital, have focused on single cash flow streams. By simplifying the problem to a narrow set of financial data, these companies could provide more streamlined and accessible funding solutions. According to Voiles, Pipe builds on this evolution by allowing any SaaS business to offer similar financial services to their customers, thereby democratizing access to capital.

Voiles also highlights a broader shift in how SMBs operate, noting that business owners no longer visit banks regularly. Instead many rely on specialized vertical software that addresses specific industry needs comprehensively. Examples include Slice for pizza shops and Boulevard for nail and hair salons, which offer end-to-end solutions tailored to their respective industries.

Pipe has capitalised on this shift by embedding financial services within these vertical software solutions. This approach allows businesses to access necessary financial products without navigating complex regulatory and financial risks. It’s perfect timing, and a super nifty product.

It’s designed to keep the balance sheet light, offloading risk by selling whole loans to capital markets. Voiles says this approach enables unlimited scaling potential. Pipe’s multi-draw line of credit is particularly attractive to SMBs, offering a security blanket that meets their needs without the onerous terms often found in traditional financing products.

Of course, we want to know what’s next for this exciting company. Looking forward, Pipe will expand. In addition to its capital products, they’re developing a card product for micro-merchants, which will be a 30-day charge card powered by Pipe’s risk engine. This product aims to fill a gap in the market, as existing solutions like those from Capital One and Amex do not cater to micro-merchants due to the high perceived risk. Pipe’s approach leverages cash flow data from POS terminals, enabling it to extend credit without personal guarantees or FICO-based underwriting.

Not only that but they also plan to introduce spend management and payroll services, fully embeddable within partner platforms. These additions will streamline expense management for SMBs, allowing them to focus more on their core operations. Of course AI gets a mention, as it often does these days, with Voiles hinting at a “moonshot” project involving an AI sidekick, which would automate business tasks and decision-making based on verticalized data sets.

It’s a really interesting profile piece of a passionate fintech leader who is behind a product that could revolutionize the capital space and have a genuinely positive impact on small businesses.

Be sure to watch more of our Virtual Arenas on our website.

Building a bank for smaller businesses.

In this fascinating episode of The Fintech Show, get an insight into how banks effectively serve SMEs today and in turn what those businesses are looking for from their bank.

James Holian from NatWest, Niall Devlin from Bank of Ireland and Edgardo Torres-Caballero from Tuum discuss the advanced technologies and data analytics that are needed to meet the diverse needs of SMEs and how banks can get tooled up to leverage them.

Of course, this has to be balanced with a human banking experience and our guests point out how essential this is to staying competitive in business banking. There’s thoughts on how SMEs adapt to the current economic climate and how partnerships and collaboration with fintechs are more prevalent than ever. It’s a must watch.

Digital transformation has had a seismic effect on modern banking already, but it’s always continuing. In this episode of The Fintech Show, Tuum CRO, Torres-Caballero, emphasises the necessity for financial institutions to make sure they’re ready for advanced technologies that meet the evolving needs of their customers.

He highlights that embracing digital platforms is vital for launching services rapidly and meeting customer requirements. By integrating APIs, banks can improve onboarding processes and risk validation, while fintech partnerships can enhance the overall customer experience. He also points out that digital transformation allows banks to bolster their data analytics capabilities and explore the potentials of artificial intelligence.

Moving away from a one-size-fits-all approach, this technology actually allows banks to better serve SMEs with differing needs. Modern, cloud-based technology is also essential for maintaining up-to-date, cost-effective systems that support sustainable growth and operational efficiency.

Both James Holian, the MD of Business Banking at NatWest, and Niall Devlin from Bank of Ireland discuss the diversity of small businesses and the necessity for banks to offer both digital and human support. Holian says that NatWest aims to be the number one bank for small businesses in the UK by combining the best technology, whether developed in-house or sourced externally, to create exceptional customer propositions.

He makes the suggestion that banks today are essentially technology companies, with their products and services increasingly digitized and highlights NatWest’s commitment to providing dynamic, responsive services, facilitated by partnerships with various fintechs. Echoing Torres-Caballero’s thoughts above, this approach helps them leverage data to offer tailored financial advice and support for borrowing and growth, even amidst uncertain economic conditions.

Devlin, the Head of Business Banking at Bank of Ireland, takes us back to the most important stakeholders in this relationship and reflects on the resilience of businesses in the face of challenges such as Brexit, COVID-19, and global political instability. He notes that the current high interest rate environment presents an opportunity for banks to help businesses maximise their liquidity. He also underscores the critical role of technology in enabling efficient and effective banking services, from simple transactions to complex applications.

However, he does point out how important in-person services are, through branches and regional business centres. This dual approach ensures that Bank of Ireland can meet the needs of all customers, regardless of their technological proficiency. Interestingly, there’s also some thoughts about the bank’s efforts to support entrepreneurship through partnerships and educational initiatives.

Balance is key it would seem! Tune in to find out more and be sure to catch more of our great flagship shows on our website.

Reimagining digital asset custody for financial institutions’ customers.

Secure custody could be the key to mainstream institutional adoption.

That’s the topic of our latest FF Virtual Arena. This time around, Money20/20 Head of Content for Europe and the author of ‘Why DeFi Matters’, Ian Horne speaks to Alex Gatiragas, Director of Solution Experience at Giesecke+Devrient (G+D) to find out how the big players can balance open minded innovation, with building trust around digital assets.

In this fascinating conversation, Horne asks what it will take to see mainstream adoption and Gatiragas provides an insight into the current landscape. G+D themselves are entering this sector with a new product – ConvegoⓇ TruSafe – specifically designed to “enable financial institutions to ensure retail investors navigate the digital asset landscape with confidence”. As for the future of this technology, we hear about the role digital wallets could play and some game changing use cases too.

Be sure to check out our previous Virtual Arena, titled ‘Digital Asset Use Cases Are Ready To Explode’, in which we interviewed Gatiragas along with Sabih Behzad from Deutsche Bank and Teana Baker-Taylor from Crypto UK to find out more about this topic. This episode is the perfect follow on to that and shows how G+D continue to innovate in this area.

Banking has been well and truly disrupted by the challengers.

In this episode of The Fintech Show, we find out what’s changed and how institutions of all sizes can now differentiate themselves in an increasingly competitive market.

Our stellar line up of industry experts includes Bianca Zwart from bunq, Peter-Jan Van De Venn from Hexaware and Arunan Tharmarajah from Wise.

Together they discuss growing pressures from tech-savvy consumers, differentiation through innovation and the impact of regulatory changes. We get some real business cases and hear about the partnerships that are making transformation possible.

Read on to find out more.

In this episode of The Fintech Show, three industry experts delve into the primary drivers and implications of digital transformation in the banking sector. We were pleased to speak to Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware (FKA Mobiquity), who emphasizes the critical role of customer demand in pushing banks to innovate. Hexaware are the experts when it comes to helping banks find ways of differentiating in a competitive market.

Typically consumers’ expectations are shaped by their experiences with tech giants like Google and Facebook, and increasingly challenger bank offerings. Of course, many banking apps share common functionalities—referred to as “must-haves”— so as a result, he says banks should focus their budgets on the remaining 20% of features that can differentiate them in the market. This strategic allocation enables banks to innovate effectively and economically, ensuring they stand out while maintaining a solid business case.

We were also delighted to speak to Bianca Zwart, Chief of Staff at bunq, the second largest neobank in Europe and a real trailblazer for customer centricity in the banking space. She discusses their mission to build a user-centric banking experience, something they’ve been focusing on since 2015.

She interestingly points out that the traditional banking sector’s slow adaptation to user needs has opened the door for more agile, user-focused competitors. There’s no question that neobanking’s growth has been colossal and they’re gradually taking a greater market share. The rising demand for better, more adaptable banking solutions is forcing all players in the industry to innovate rapidly, fostering increased competition and diversity.

We also spoke to Arunan Tharmarajah, Head of European Banking and Payments at Wise, one of the key players in making payments more accessible. They have both provided an innovative solution to a problem and are now helping more traditional institutions to innovate themselves. Tharmarajah gives us insights into how banks can address the challenges posed by the evolving financial landscape, particularly in cross-border payments.

He goes on to explain that some banks prefer to partner with specialized firms like Wise for cross-border transactions, allowing them to focus on domestic services. Wise offers a solution that integrates with traditional banking infrastructure, ensuring seamless, low-cost international transactions. He also discusses the broader implications of regulatory changes, which are increasingly accommodating non-bank entities in the payment systems. This shift is expected to enhance competition, lower fees, and improve customer experiences globally.

Tharmarajah emphasizes the need for banks to adopt a customer-centric approach, moving away from siloed, product-focused models to more holistic, technology-driven solutions that meet the diverse needs of modern consumers.

All our speakers are very much in agreement that focusing on user-centric innovation, strategic partnerships, and efficient use of technology, will be key to banks survival in this competitive landscape. Finally the user comes first in banking.

We hope you enjoy this episode and stay tuned for more coming soon.

The Paytech Show is back and this time we’re looking at a partnership that perfectly captures what is possible with BaaS.

In this episode we speak to Noah Sharp, CEO of Vodeno, and Neil Chandler, CEO of Aion Bank, to find out how Vodeno’s unique platform works alongside Aion Bank’s ECB license to enable non-financial companies to offer banking services without regulatory burdens.

Below you’ll read more about their thoughts on where BaaS is heading and the potential for embedded banking to meet modern digital needs.

In this episode we delve into the intricacies of Banking as a Service (BaaS) and the specific approach that our interviewees have taken. Sharp explains Vodeno’s unique positioning as a robust BaaS and embedded finance platform built entirely on the cloud and a private blockchain, where the ledger is managed by smart contracts.

Not only that but their platform is complemented by Aion, a regulated bank based in Belgium, a tier-one regulatory jurisdiction, facilitating the distribution of regulated services and ensuring compliance. This combination allows Vodeno to serve both non-financial companies looking to offer financial services without becoming regulated entities and regulated firms needing specific solutions without the full regulatory burden.

To explain more, Chandler emphasizes how important regulatory compliance is and points out that many BaaS providers face challenges because they underestimate the importance of regulation. Our guests avoid this pitfall by being intrinsically connected, with Aion Bank’s full banking license ensuring that regulatory obligations are taken seriously.

The show also addresses current issues in the payments industry, such as challenges around cross-border payments in continental Europe. Unlike the UK, where open banking and instant payment schemes like Faster Payments facilitate efficient domestic transactions, Europe struggles with varied API robustness and cross-border payment complexities.

Companies must often adopt localized approaches to handle payments effectively, which complicates centralization efforts. Here, BaaS providers play a crucial role, offering more comprehensive financial services than simple payment service providers (PSPs), especially when deeper financial functionalities such as credit lending or deposit protection are required.

Embedded banking, or embedded financing, is highlighted as a customer-centric approach, operating on a B2B2C model. This means the bank’s products are designed to meet the end customer’s needs, often delivered through retailers or marketplaces.

For example, customers don’t want a Buy Now, Pay Later (BNPL) service for its own sake; they want the product it helps them acquire. Aion Bank and Vodeno understand this dynamic, focusing on providing digital experiences that align with customer desires. It’s an informative episode that also includes thoughts from Chandler on what the future holds for BaaS, so be sure to tune in above.

In this episode of the Paytech Show, Grant Truter from BPC, Bruce Paveley from TymeBank, and Dieter Botha from Tyme Group, uncover a partnership that is revolutionising banking in areas like South Africa.

We hear about the successful integration of digital and physical banking solutions and the implementation of BPC’s seamless card issuance.

The story of TymeBank itself is also inspiring and shows incredible growth delivering services to an underserved population. In this great episode we hear about the factors that have made that happen from cloud scalability and collaboration.

BPC Chief Commercial Officer, Grant Truter, talks about how their partnership with TymeBank allowed them to realise their vision of merging digital and in person banking experiences. Their omni-channel solution would include self-service channels for customers and allow them to build a digital bank from the ground up, with BPC providing the necessary technological backbone. It’s a classic case of a technology partner making a vision happen.

Bruce Paveley, CTO of TymeBank, elaborates on their history and mission. From beginning as a money remittance service they evolved into a full-fledged banking platform about seven years ago. High banking fees have excluded many South Africans from financial services which is what they wanted to address. In a cash heavy society wanted to build trust in other forms of banking and payment, through reliable and always-available systems. This is where BPC’s SmartVista platform came in, along with the technical support they can offer.

That’s not it however. We also get insight from Dieter Botha, Group CTO for Tyme, who provides a broader perspective on TymeBank’s operational strategy and future plans. TymeBank was their first bank and they’ve since developed another in the Philippines.

Botha notes that TymeBank’s approach involves building and operating banks profitably, and after their current successes they’re now eyeing Vietnam for further expansion. Botha introduces the concept of “phygital,” combining physical and digital elements to enhance customer engagement. In South Africa, that means employing self-service kiosks in retail stores, allowing customers to open bank accounts and receive personalised Visa debit cards within minutes, facilitated by biometric verification.

This model has been successful, with TymeBank issuing approximately 500,000 cards per month across its operations in South Africa and the Philippines.

The interview is a perfect example of a partnership that has successfully blended advanced digital technologies with practical physical solutions to drive financial inclusion. In the areas they operate this is ground breaking. Tune in to find out more and see how this could be replicated elsewhere.

If you would like to learn more about the BPC x TymeBank case study – read the full story here.

Find out how fintech is changing the retail investment space.

In this episode of the Fintech Show we’re joined by Boaz Yaari from Sharegain and Yorick Naeff from BUX for a fireside chat on the evolution of retail investing and the new revenue streams that banks can unlock.

Together, they explore the changing landscape of retail investment, predict future trends like non-purpose lending, and we find out how their companies got started.

There’s no denying the boom that retail investing has experienced in recent years, particularly in the wake of the pandemic. Now, many consumers are looking for ways to grow their wealth and take control of their savings and investment journey, rather than relying on banks to do that for them. US stock trading volumes saw an enormous spike in 2020 and 2021 due to the immense rise in retail investing. Even neobanks are adding investment products to their offering, with great interest. Monzo got 200,000 sign ups to their investment account waiting list in just two days.

It’s in this context that both Yaari and Naeff started their companies. Both CEO/co-founders here reveal the stories that led them to where they are now. Boaz traces his path from FX derivatives trading to securities lending, recognising an untapped opportunity akin to Airbnb but for securities lending. Despite skepticism from others, Yaari’s pattern recognition and determination spurred him on to pursue Sharegain.

On the other hand, Naeff’s background in financial services and tech converged when he observed the barriers hindering retail investors from entering the market. Collaborating with a colleague, they conceptualized BUX to democratize retail investing, leveraging the rise of mobile applications. Their shared vision aligned perfectly with the evolving market, particularly the increasing demand for accessible and intuitive investment platforms.

The conversation, which took place in our studio, delves into the dynamic shifts within the retail investing landscape. Our speakers emphasize the growing influence of private investors, particularly younger generations with a savings and investment-driven mindset. They predict a trend toward non-purpose lending, foreseeing a revolution in the lending space that could empower investors to leverage their portfolios for various financial needs.

Highlighting the symbiotic relationship between Fintech and traditional financial firms, Yaari and Naeff stress the advantages of agility and expertise exchange. Yaari underscores Sharegain’s unique position in securities lending, while Naeff emphasizes BUX’s collaboration with industry giants like BlackRock to tailor investment packages for retail investors.

Stick around until the end also, because they have great advice to offer aspiring founders also. That includes the importance of assembling the right team, focusing on long-term growth, and staying resilient amidst challenges.

Yaari reflects on Sharegain’s pivot towards sustainability and profitability, a testament to the team’s adaptability and perseverance. Similarly, Naeff celebrates the creation of a new market for independent agency lending, underscoring the transformative power of innovation in overcoming market barriers. It’s a really exciting area that could present new revenue streams for banks.

Tune in to find out more.

The potential of digital assets for financial institutions is huge.

No matter where you stand on crypto, CBDCs and DLT, there's no denying the space is moving fast.

For our latest Virtual Arena, we gathered a panel of speakers including Sabih Behzad from Deutsche Bank, Alex Gatiragas from G+D, and Teana Baker-Taylor from Crypto UK to find out how financial institutions are getting on board and what this might mean for consumers.

In this revealing discussion our expert speakers identify key areas of opportunity, the need for regulatory clarity and the importance of helping consumers with custody of their assets.

️ "We will be able to offer new products we can't even envisage today."

️ "The real innovation is happening in the open source space."

️ "We're starting to see more regulation for stable coins."

Tune in for these great insights and more.