FinTech LIVE London 2024: Unpacking B2B Embedded Finance

January 10, 2025

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Executives from Swoop and Sage feature on a fireside chat at FinTech LIVE London that explores the potential of embedded finance

Andrea Reynolds, CEO of Swoop and Chip Mahan, Global Head of Fintech Strategy & Operations at Sage, explored how embedded finance can simplify and enhance business operations during a fireside chat at FinTech LIVE London Global Summit 2024.

Why embedded finance matters for SMEs

Andrea Reynolds sets the stage by explaining Swoop’s mission: providing SMEs with seamless access to funding through a data-driven platform.

Swoop aggregates lending, grants and investment options, enabling businesses to find the best financing solutions without wasting time on manual applications.

“[I] started swoop to remove barriers to access to finance for small and medium businesses,” states Andrea.

Chip highlights Sage’s role in embedding finance directly into its accounting software.

By offering cash flow forecasts and integrating with Swoop’s platform, Sage empowers SMEs to access financial resources effortlessly.

Andrea Reynolds, CEO of Swoop

Key products and success stories

The collaboration between Swoop and Sage has already yielded impactful results. Through embedded finance, SMEs using Sage’s accounting tools can:

Access tailored funding options: Sage’s platform connects with Swoop to analyse business data, offering loans, grants or cost-saving opportunities directly within the software.
Support accountant-led advice: Accountants, often trusted advisors to SMEs, can use Sage’s tools to recommend funding options and monitor financial health.

Andrea shares examples of early successes, including partnerships with major banks like NatWest and Lloyds.

These institutions leverage Swoop’s platform to offer grants and loans tailored to customer needs.

Chip states that the solution extends beyond lending. For instance, utility bill analysis helps businesses identify cost savings, showcasing the versatility of embedded finance.

Andrea Reynolds and Chip Mahan at FinTech LIVE London 2024

The future of embedded finance and AI integration

Both speakers agree that embedded finance is still in its early stages, with significant advancements on the horizon.

Chip describes the current phase as a “walk stage,” where customers initiate actions themselves.

The next evolution involves proactive, AI-driven solutions that anticipate customer needs.

Andrea highlights how generative AI and data analysis are transforming the lending process. By building loan propensity models, Swoop aims to reverse traditional applications.

Both speakers also touch on the broader industry trend of integrating AI-driven insights. Sage’s Copilot, for example, uses AI to identify cash flow challenges and recommend financial solutions, enabling businesses to act quickly and effectively.

Challenges and opportunities

The session also addresses potential hurdles, such as data privacy and trust. Andrea notes a growing shift in customer behaviour, with more SMEs embracing data-sharing post-Covid.

“They're [businesses] more digitally savvy. They expect you to integrate to get the job done for them,” she says, attributing the change to open banking advancements and increased trust in digital platforms.

Another challenge lies in regulatory complexity.

Sage and Swoop emphasise their roles as facilitators, not lenders, ensuring credit risk remains with financial institutions.

Chip underscores the importance of maintaining trust by providing transparent, non-advisory services.

Chip Mahan, Global Head of Fintech Strategy & Operations at Sage