Liberis and Google Forge New Pathways in Financial Solutions for SMEs
In a remarkable event held recently, fintech pioneer Liberis partnered with Google to reveal transformative advancements in AI-driven financial solutions. This collaboration is set to redefine how small and medium-sized enterprises (SMEs) secure essential capital, reflecting a paradigm shift in the finance landscape.
A Milestone Gathering
The "AI event" hosted at Google’s headquarters was a testament to Liberis’s unwavering commitment to innovation. As the company progresses towards creating solutions tailored for SMEs across the UK, US, and the broader Western Hemisphere, the enthusiasm was palpable among attendees.
During this event, Liberis presented an impressive track record over the past 18 months, showcasing 126 major product releases, doubling its partnerships to 50 global organizations, launching two new products, and expanding its reach into eight additional countries, now totaling 16. This achievement emphasizes Liberis’s strategy to adapt to the evolving financial needs of SMEs.
A Surge in Merchant Support
With a tripling of the merchant base served, Liberis is now analyzing 2.2 million businesses monthly. This impressive figure must be viewed in the context of the vast market comprising 5 million SMEs in the UK and 60 million in both Europe and the US combined. The potential for growth offered by AI and embedded finance solutions is immense.
Addressing Funding Fragmentation
A key theme of the day was the acknowledgement that the traditional, "one-size-fits-all" funding approach is outdated. With a staggering $5.7 trillion global small business funding gap—a staggering 27% rise from the previous year—the need for customized funding solutions is more urgent than ever.
A survey conducted by Liberis involving 850 merchants indicated that 32% of them expect rising prices due to volatile global market dynamics. Compounding this issue, many SMEs utilize between five to eight different funding products throughout their business lifecycle, leading to a convoluted and often frustrating experience.
Turning to AI for Personalized Solutions
Lindsay Brightwell, Senior Product Manager at Liberis, unveiled the Liberis Capital Platform, an AI-powered solution that aims to break away from outdated practices. This platform focuses on businesses’ future prospects rather than merely relying on historical data. Three core AI capabilities form the backbone of this innovative approach:
Forecasting and Decisioning Models: By analyzing thousands of data points, including external factors like website traffic and social media activity, these models can predict where merchants are headed.
AI Recommendation Engine: Utilizing real-time insights, this engine offers financial options perfectly aligned to a merchant’s current needs and growth stage.
- Pricing Sensitivity Models: These ensure that funding solutions are tailored, affordable, and fair by analyzing past funding behaviors and cash flows to optimize pricing for each unique business.
Real-World Applications of AI in Funding
The integration of these advanced AI tools has already yielded significant real-world results. For instance:
Amina, the owner of a boutique plant shop, lost visibility with lenders after changing her POS provider. Liberis’s AI identified her growth trajectory and provided access to starter capital that adjusts dynamically with her sales.
Simone, an eBay seller of trading cards, was deemed too risky by traditional lenders due to seasonal fluctuations. Liberis’s AI facilitated access to "Flex Capital", granting pre-approved funding without the hassle of reapplication.
- Alex, who owns a growing cafe chain, required capital for expansion. The “Working Capital” solution offered by Liberis provided the funds with repayments linked to future sales, easing the burden of financial management.
Since implementing these AI solutions, Liberis has experienced a 70% increase in merchant engagement and a staggering 27% jump from hyper-personalization alone, translating to a 25% faster growth rate for funded merchants compared to their counterparts without external funding. Notably, 76% of funded businesses return for additional rounds of funding, highlighting robust customer loyalty.
Rethinking the Application Process
Liberis introduced another forward-thinking approach at the event: embedding funding within the natural workflow of business operations. Charlie Davies, a key spokesperson, presented “Pay with Liberis,” a financial product designed to facilitate funding directly at the point of sale.
This innovative, white-label solution allows partners to provide seamless financing with flexible payments tied to a percentage of future sales, thus overcoming limitations of conventional "Buy Now, Pay Later" models. Early projections indicate an anticipated 14% increase in checkout conversion rates for higher-ticket items, fostering stronger customer relationships.
The Role of Google Gemini
The collaboration with Google extended beyond traditional applications, diving deep into how Google Gemini is reshaping underwriting processes. Ada, an AI agent trained on Gemini and thousands of Liberis deals, has been live in production since May.
Ada simplifies credit decision-making for complex cases, which previously required intensive manual review. With 80% of decisions automated, Ada streamlines the underwriting process by providing recommendations, reasoning, and risk assessments within moments.
The chat function allows underwriters to engage with Ada, posing questions and accessing real-time external information through Google Search. Beyond its immediate capabilities, Ada is embedded in a self-reinforcing feedback loop, learning continuously from the outcomes of approved and rejected deals.
This AI tool boasts 68% alignment with human decisions, especially in terms of approvals, highlighting its potential to revolutionize underwriting for small businesses and drastically reduce decision times.
Google’s Integration of AI and Data
Denish KC, Google Cloud UK’s China Agri Market Lead, underscored Google’s commitment to the AI landscape. He emphasized their vertically integrated AI technology, from custom silicon chips (TPUs) to the advanced capabilities of the Gemini model developed by DeepMind.
Notably, the open cloud ecosystem provided by Google allows businesses to select foundational models tailored to their needs while utilizing Google’s grounding features to ensure data integrity and accuracy.
Looking Ahead: A Revolution in Business Financing
The event offered a clear vision for the future: by merging cutting-edge AI technologies, real-time analytics, and integrated finance solutions, Liberis and Google are not just improving capital accessibility; they are fundamentally transforming the growth landscape for small enterprises worldwide.
Conclusion: A New Dawn for SMEs
With a determined aim to substantially increase the number of merchants they can serve, both Liberis and Google are equipping small businesses to navigate the constantly evolving economic terrain with confidence and agility. As these innovations continue to unfold, SMEs can now look forward to a future where they are empowered to chase growth without the financial burdens that have historically slowed their progress. The journey of innovation is underway, and the implications are vast.
