Embedded finance & AI: Day 1 at Money 20/20 sets demand for measurable ROI

Embedded finance solutions are actively dismantling the traditional hurdles that small and medium-sized enterprises (SMEs) face when seeking crucial funding. Insights from day 1 of the recent Money 20/20 Europe event in Amsterdam reveal a significant industry shift. Businesses are moving away from cumbersome traditional lending models. They are embracing integrated, data-driven approaches that prioritize speed, transparency, and, critically, trust, with a strong emphasis on demonstrable returns.

The problem: Traditional lending fails modern e-commerce sellers

For many small business owners, especially in the booming e-commerce sector, securing capital has long been a difficult journey. Cynthia Yoon, Global GM of eBay Seller Capital, highlighted this issue at Money 20/20. She pointed to a fundamental mismatch. Traditional lending criteria do not align with the reality of today’s online sellers. “Traditional lending really doesn’t work for our eBay sellers,” Yoon stated. She explained that many are “incidental entrepreneurs.” These sellers may lack extensive credit profiles. They might also operate with fluctuating revenues tied to unique or rare inventory. Such sellers often need capital urgently. They must seize fleeting inventory opportunities. Rigid, lengthy bank loan application processes cannot meet this urgent need.

The solution: Embedded finance offers pre-approval and confidence

Rob Straathof, CEO of embedded finance platform Liberis, shared these views. He emphasized the emotional toll of the traditional process. “When a small business applies for a bank loan and gets rejected, it hurts,” Straathof remarked. He explained that embedded finance solutions, like eBay Seller Capital powered by Liberis, offer a better way. These solutions aim to “remove that fear by pre-approving them before they even apply.”

This proactive approach defines the value of embedded finance. Providers leverage real-time platform data. This allows them to offer pre-approved financing directly within the digital environments where businesses operate. For example, on eBay, sellers can access funding opportunities straight from their dashboard. They can see their eligibility and often receive capital almost instantly. Straathof noted that platforms pre-approve approximately 70% of small business owners. This significantly reduces the “fear of rejection.” It also lessens the anxiety of long application waiting times.

Flexible repayments and building trust

Repayment models also consider the realities of small business cash flow. Instead of fixed monthly payments, businesses repay a percentage of daily sales. This flexes with the natural highs and lows of business revenue. “We don’t want sellers to adapt to banks. We want finance to adapt to them,” Yoon explained. This approach alleviates pressure. It allows businesses to focus on growth, not burdensome debt.

Trust remains a key concern for small businesses. Straathof acknowledged that end-users might not widely know the Liberis brand. However, he explained that the partner platform provides the trust. “It’s eBay Seller Capital powered by Liberis…trust comes from eBay because they selected us as a vendor,” he stated. This white-label model enables established platforms to extend financial services seamlessly. They do so with the credibility they have already built.

The impact of such accessible and flexible funding can be immense. Yoon shared an eBay seller’s success story. With embedded capital, the seller significantly expanded her listings. She also optimised inventory purchasing and grew her profit margins. “She didn’t just receive capital. She received validation,” Yoon emphasized. This highlights the confidence boost such programs can deliver.

AI in finance

The Money 20/20 event also focused on Artificial Intelligence (AI) in the financial sector, but with a clear demand for tangible results. While Generative AI (GenAI) offers significant potential, experts like Straathof urge caution. They warn against premature or unchecked implementation, especially in customer-facing and decision-making roles. The message from Amsterdam’s first day was unambiguous: flashy demos matter less than metrics with line-item impact.

“I don’t think much of the GenAI is yet ready to be in front of customers,” Straathof asserted. He cited the need for near-perfect accuracy. AI agents must achieve this before handling critical functions like loan underwriting or payment execution. He stressed avoiding “black box” scenarios. In these situations, AI-driven decisions lack explanation, auditability, or the possibility of a challenge. “Every AI decision should be explainable, traceable, and challengeable.”

Finance chiefs are now equipped with a shortlist of critical questions for their teams before quarter-end, reflecting this demand for accountability:

• Which fraud KPI will AI improve—false positives, approval rates, or both?
• How many hours can GenAI agents demonstrably remove from onboarding or reconciliation processes?
• Where can AI deliver regulator-approved consistency in customer advice?

For the near future, Straathof sees AI as a powerful support tool. It can augment human agents and underwriters, potentially increasing output tenfold or even a hundredfold. However, robust safeguards, feedback loops, and unwavering transparency must accompany this. These measures are crucial to maintain customer trust. The consensus is clear: AI holds immense potential. Yet, its integration into financial services must be a carefully managed evolution, prioritizing accuracy, explainability, and user trust. As major players demonstrated, the winners in 2025 will be those who treat AI as an ROI engine sitting on bullet-proof rails—not as an experiment bolted onto legacy systems.

The discussions from day one at Money 20/20 underscore a clear path for the fintech landscape. The industry is moving towards more inclusive, intuitive, and trust-based financial services, with an uncompromising focus on measurable outcomes. Embedded finance brings capital directly to businesses within their operational ecosystems. Coupled with the cautious, human-centric, and ROI-driven integration of AI, these trends are pivotal. They promise a more accessible, efficient, and supportive financial future for SMEs.

Check back with Bobsguide for continued reporting from Money 20/20 Europe 2025, as day two promises sessions on programmable money, CBDC pilot results, and buy-side sustainability metrics.