Unlocking the Future of SMB Success in Fintech: Insights from Worth’s Exclusive Luncheon Panel

At our recent luncheon in Vegas, Our chairman Asif Ramji (Founder and CEO of Venture Worx) had the unique opportunity of moderating a powerful discussion alongside a group of industry leaders who are shaping the future of financial technology for small and medium-sized businesses (SMBs). The panel included Sonali Sambhus (former SVP of Square), Wally Mlynarski (Head of Merchant Solutions & Receivables at Bank of America), Zahir Khoja (CEO of Wave), and Sal Hazday (SVP/GM Commercial at Equifax). Together, they delved into topics ranging from data-driven solutions and AI advancements to the unique challenges that SMBs face when accessing financial services.

Small Businesses: The Backbone of the Economy

Their discussion highlighted the undeniable impact of SMBs on the economy. As Sal Hazday emphasized, “Even though small businesses are less than 50 percent of total employment, they represent a disproportionate share of job growth– over 60 to 70 percent of job growth. They’re close to 50 percent of [the] GDP. And since the pandemic, entrepreneurship has soared, so new business applications, monthly, are up about 50 percent [and have] plateaued there.”

Supporting these businesses is not only beneficial for economic stability, but it’s also essential for a thriving, diverse economy. With entrepreneurship on the rise post-pandemic, the role of small businesses is not shrinking, but expanding. For those in the financial services sector, the opportunity and responsibility are clear: we must provide tools and resources that support these businesses’ growth and long-term success.

Shifting Trends in SMB Lending

With access to extensive SMB data, we see trends that reflect recent economic shifts. While industries like healthcare and construction remain robust, sectors such as transportation and manufacturing have faced challenges. Financial institutions and fintechs are adapting to these variations, yet there’s a noticeable gap: traditional banks are pulling back slightly, while fintech companies are stepping up to fill this void. This balance speaks to a greater need for agile, data-driven lending practices that can cater to fluctuating demands across industries.

Why Micro-Businesses Deserve Attention

Zahir Khoja of Wave shared his perspective on supporting micro-businesses, which account for more than 95% of businesses in North America. He spoke about his own experience as a young entrepreneur and the unique struggles that micro-businesses face, from managing cash flow to dealing with the complexities of invoicing and payments. 

“You can buy a car, you can get a bank loan as a consumer, you can get a credit card with three to five clicks on a phone and you’re good to go. As a small business and–again I’m talking about a micro business–I want to start my business being a photographer on the weekends. I don’t have access to accept payment and getting paid is very important–cash flow is important. So [in] minimizing that friction at onboarding and allowing our customer to come on board knowing full well that the risks associated to it are very minimal, [we’re] allowing them to start their business so that they can continue to do what they do. That’s important.” 

Wave’s goal with Worth, as Zahir put it, is to “democratize” financial access for these micro-entrepreneurs, helping them thrive in what they do best. By simplifying processes like onboarding, companies like Wave enable micro-businesses to contribute to their communities without being burdened by administrative hurdles. Reducing initial barriers with a frictionless onboarding experience can help empower small businesses to thrive and continue doing what they love. This, in turn, benefits their customers, creating a ripple effect of positive economic impact.

Friction in B2B Payments: Where Consumerization Can Help

A recurring theme during this discussion was the disparity between B2B and B2C payment experiences. In the consumer world, advancements like single-click payments and mobile wallets have become the norm, yet B2B transactions remain complex and fragmented. The financial industry has a significant opportunity to improve this. Sonali Sambhus highlighted that consumer-style ease could also extend to SMB onboarding processes—simplifying everything from KYC (Know Your Customer) to payment acceptance so that small business owners can focus on their customers rather than cumbersome processes.

The Role of AI in Shaping Financial Access and Equity

AI’s potential in financial services goes beyond buzzwords. Sonali, an AI pioneer, described how data-driven AI solutions can unlock new opportunities for SMB lending. Data is the foundation of modern financial technology, and its sheer volume is staggering. 

She offered a striking statistic: “Every minute, there are 2.5 [quintillion] bytes of data that is getting generated and 90 percent of the world’s data has been generated in the last two years. For context: A [quintillion] is 18 zeros.”

Sonali highlighted the untapped potential of non-traditional data sources like social and industry-specific insights, which are ripe for leveraging in SMB financial solutions.

“If you look at a lot of our financial institutions and how our machine learning models that already exist are powered, it’s largely based on digits and numbers, income, and expenses and whatnot for SMBs. But there’s a whole new slew of new data, whether it’s social data [or] industry data that’s out there.”

The opportunity to harness this data isn’t just about improving outcomes—it’s about building systems that are both inclusive and predictive.

By leveraging non-traditional data sources like social and industry-specific insights, we can make lending models more inclusive and predictive. Sonali shared a case from her time at Square, where predictive AI allowed the company to expand its lending base while managing risk more effectively. Her perspective highlighted AI’s transformative role, not only in providing access to capital but in building a more inclusive financial ecosystem overall.

Ensuring Fairness and Transparency in AI

Our panel also explored the challenges and opportunities AI brings, especially regarding compliance and transparency. Wally Mlynarski emphasized the importance of explainability in AI models for regulatory purposes. 

“When you’re producing this generative AI solution set, you need to be looking at the disparate outcomes that you’re building towards and being able [to], as a startup, then help banks show ‘hey, there may be a viewpoint that this is a disparate outcome that came out, but here’s why.’ If you can be able to show that data quickly and be able to turn that around, to be able to produce a response or an answer, that will help regulators get along and better understand technology that’s fast-paced and fast-moving.

As we’re driving that from a bank perspective, [Bank of America has] a lot of consumerization of various products, whether you look at mortgages, you look at loans or lending or DDA accounts, and those have gotten very, very good in a simpler consumer model than small businesses–even our purchase experiences.”

As financial institutions increasingly adopt AI, the need for models that are not only accurate but also transparent is paramount. The ability to explain why a particular decision—like an SMB loan approval—was made builds trust and aligns with evolving regulatory requirements.

Combatting Fraud with Advanced AI Solutions

The discussion took a thought-provoking turn as we addressed the darker side of AI: its potential for misuse. Deepfakes, synthetic identities, and other forms of fraud are becoming more sophisticated, posing significant challenges for financial institutions. Wally shared that major banks, including his team at Bank of America, are investing heavily in technology that detects and prevents fraud through enhanced identity verification and anomaly detection. As financial services continue to evolve, keeping pace with fraud prevention technology will be crucial to protecting both consumers and SMBs.

Paving the Way for an Inclusive Financial Future

The insights shared by our panelists highlights a common goal: creating a financial ecosystem that supports, empowers, and protects SMBs. Our discussion reminded me that while technology offers incredible potential, it’s only as impactful as the purpose it serves. As leaders in fintech, our responsibility is not only to innovate but to ensure these advancements work for all businesses, especially those historically underserved.

As we look to the future, Worth remains committed to pushing boundaries in workflow automation and data-driven solutions for SMB onboarding. We believe that by reducing friction, fostering inclusivity, and embracing transparency, we can build a stronger financial ecosystem for everyone.