How Fintech Is Revolutionizing Access To Capital For Startups And Entrepreneurs

By Yaacov Martin

With consumer prices having climbed 2.4% in the past year, the cost of running a business also is on the rise. This mounting financial load will likely lead to more entrepreneurs and startups seeking loans.

Consequently, banks are now under immense pressure to provide access to loan programs across every business and consumer touchpoint. As traditional banking models struggle under the complexity of multichannel loan delivery, fintech startups are stepping in to redefine accessibility in financial services.

Which fintech innovations can businesses adopt to stay ahead of their growing need for fast, seamless and competitive financing?

Digital wallet loan provisioning tools

Whether purchasing wholesale goods or investing in employee training, today’s businesses want — and expect — quick and easy access to finance options at their precise moment of need. Traditional lending channels often cause friction and delays, making for a frustrating customer experience.

Lenders can now turn a financing journey into an intuitive payment experience, enabling companies to access and use approved loans instantly and conveniently. Digital wallets are one of the tools that make this possible, particularly in an in-store or in-person setting.

In 2024, digital wallets represented 53% of e-commerce and 32% of point-of-sale spending, and over two-thirds of the global population is expected to own a digital wallet by 2029.

Provisioning loans via digital wallets helps startups and entrepreneurs access funds instantly. This results in faster time to market, streamlined operations and less friction when investing in growth. It also allows businesses to manage financing directly within the payment tools they already use — making it easier to stay agile and take advantage of opportunities the moment they arise.

Embedded finance

Nothing has transformed how businesses access capital like embedded finance, including embedded lending that seamlessly integrates bank financing directly into the payment process, resulting in an uninterrupted financial experience. It eliminates the traditional pain points — lengthy applications, slow approval times and outdated risk assessments — replacing them with faster, intuitive funding experiences that match the pace and flexibility modern businesses need to grow.

Startups and entrepreneurs can access funding instantly within the context of their purchasing journey, drastically increasing financing adoption, conversion and utilization rates.

Further strengthening the digital banking sector, a recently signed executive order is marking an “unprecedented step towards welcoming in a new era for digital financial technology; one in which President Trump’s administration will work towards ensuring innovation thrives [and] regulatory frameworks are clear.” This order enables companies to confidently launch smart finance solutions without being held back by unclear or outdated regulations.

Moreover, embedded lending enables businesses to access a range of relevant financing options that fit their specific purchase and use case in their precise moment of need. This allows companies to secure the right funds at the right time to help drive growth.

Personalization and credit decisioning

One-size-fits-all loans and outdated credit assessments often provide ill-suited financing options and exclude creditworthy customers.

Further, McKinsey research shows that 71% of consumers expect personalized interactions, and 76% get frustrated when it isn’t provided. With recent technological developments that draw on real-time, contextual data points — particularly open banking, AI and machine-learning algorithms — businesses can enjoy tailored financing choices.

Lenders can access financial data directly from a business’ accounts and conduct a real-time risk assessment, analyzing its spending habits, including cash flow stability. This information offers a fuller picture of a startup’s financial profile and opens access to funding that was once out of reach — unlocking growth opportunities previously reserved for larger businesses.

This also allows banks to offer hyper-personalized loans, based on fair decisioning, that fit an entrepreneur’s or startup’s unique financial health and purchase scenario — all before they even reach the place of purchase.

In 2025, micro-personalization is progressing and changing how businesses access capital as lenders categorize customer segments based on real-time data instead of traditional parameters, such as demographics.

Innovation for the win

Fintech innovations like these are changing the way startups and entrepreneurs access capital, streamlining the process to be faster, more efficient and integrated seamlessly. These advancements equip businesses with a strategic advantage, empowering them to secure funding swiftly, optimize cash flow and scale operations with greater agility.

Yaacov Martin is CEO of The Jifiti Group, a fintech company that he co-founded in 2011. He is an embedded lending thought leader, speaker and active contributor to leading payments and fintech publications. Prior to Jifiti, Yaacov founded and managed an Israeli import and distribution company for consumer goods. He also founded a niche high school and spearheaded the designing and implementation of a unique curriculum in order to accommodate the specific needs of the student body.

Illustration: Dom Guzman