Fintech Alliances and AI Expand Small-Business Lending Worldwide

Closing financing gaps for small businesses is the goal of a new wave of global partnerships between fintech comapnies and established institutions. From the Philippines to the UK, digital lenders are forging strategic alliances and leveraging AI to tap into markets often overlooked by traditional banks.

ADB and GCash launch multi-million dollar program in the Philippines

A milestone for Southeast Asia: The Asian Development Bank (ADB) and Fuse Financing, the lending arm of fintech giant GCash, have agreed on a €30 million loan program. This marks the ADB’s first partnership with a fintech company in the ASEAN region. The focus is on micro, small, and medium-sized enterprises (MSMEs), particularly those led by women.

The need is great. Over 99 percent of the 1.24 million registered companies in the Philippines are MSMEs. According to ADB research, access to capital is their second biggest obstacle to growth – right after entering new markets. The program aims to promote sustainable and inclusive growth in underserved regions.

British fintech company secures 150 million euros

The trend toward collaboration between fintech companies and traditional institutions continues in Europe. On February 10th, the British fintech company Momenta Finance announced a new loan facility of approximately €150 million from a global investment bank. The capital will fund a new, tiered loan structure with which Momenta aims to expand its business loans for small and medium-sized enterprises (SMEs).

To date, the fintech company has already issued over €300 million to more than 2,500 SMEs. This new partnership underscores the confidence of institutional investors in scalable, digital lending models.

AI and real-time data are revolutionizing creditworthiness

The technological basis for this expansion is artificial intelligence (AI) and the analysis of alternative data. Startups are increasingly relying on AI agents that automate entire workflows – from credit checks to fraud detection. This allows small teams to manage quotas that previously required large departments.

Grab Financial is a pioneer in this field . Since the beginning of February, the fintech company has been using the FICO platform in six Southeast Asian countries. It evaluates loan applications based on behavioral data from the Grab ecosystem, such as rides and merchant sales. This is said to have increased the eligibility for loan offers by almost 50 percent.

A similar model is used in the partnership between fintech companies NEO PAY and CredibleX in the United Arab Emirates. Here, merchants using NEO PAY’s payment systems can apply for financing directly based on their real-time transaction history. Traditional hurdles are eliminated.

Regulators in the global race for innovation

The rapid pace of innovation poses challenges for regulatory authorities worldwide. The increasing use of AI in lending is under closer scrutiny. In the US, individual states are creating their own AI regulations – resulting in a sometimes contradictory patchwork of rules for the industry.

Data quality and integration into legacy IT systems remain major obstacles

Anyone using AI in credit decisions should be aware of the new EU regulations now. A free implementation guide explains labeling requirements, risk classes, and documentation obligations – in a practical way for financial service providers and lenders. Download the free AI guide now

A report on banking compliance trends in the first quarter of 2026 reveals that while AI is widely used in risk management, its adoption in credit assessment is progressing more slowly. This is due to concerns regarding fairness, transparency, and model validation. Data quality and integration with legacy IT systems remain significant obstacles.

Embedded Finance as a path to sustainable scaling

The future lies in integrated models. “Embedded finance” —the seamless integration of credit and payment APIs into trading platforms or software—is gaining importance. It enables efficient scaling and reaches customers directly within their usage context.

The fintech industry is maturing. After a period of unchecked growth, profitable and resilient business models are now coming into focus. This is also demonstrated by the IPO of the Brazilian digital lender Agibank on the New York Stock Exchange on February 11th. While capital is available, investors today are paying closer attention to profitability and credible expansion strategies. The success of the new partnerships will depend on whether they can reconcile inclusive growth with regulatory complexity.

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(Featured image by Markus Winkler via Unsplash)

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