Rewiring SME Finance: The Rise of Embedded Ecosystems and Accounting as Platform and Banking Interface
Christie Holm Kristensen (Danske Bank), Juho Putkonen (Accountor Software), Linus Olofsson (Visa), Johannes Hill (Mynt) & Anton Danielsen (OP Financial Group)
Embedded finance in SME accounting software is transforming banking relationships by automating 90% of accounting tasks, enabling real-time data sharing for liquidity and credit solutions, and shifting SME lending from traditional banks to platforms. Accounting firms are evolving from manual processing to advisory roles, enhancing client value. User experience and integrated financial services in ERP and accounting platforms dictate customer loyalty. Innovation focuses on assisting underserved microcompanies with automated credit scoring and tailored financial advice, supported by regulatory frameworks like the European Financial Data Act.
"Entrepreneurs don't want to bookkeep; they want to get things done and have a thriving business. The future is about creating the best user experience, automating processes, and advisory support, enabling SMEs to thrive with embedded finance and technology."
Summary
- Mint is a spend management software focusing on embedded finance in accounting software for SMEs in Sweden and Norway. - Accounting automations are advancing rapidly, shifting accountants' roles towards advisory and support. - SME finance is evolving with embedded finance, enabling automated loan applications and better data use in accounting platforms. - Customer relationship ownership depends on user experience; both banks and accounting software platforms compete for SME engagement. - Future SME lending will likely move from banks to accounting software, with embedded finance transforming banking and advisory roles.
Article
The financial revolution reshaping small business banking
Nordic experts predict profound shift in SME finance through embedded ecosystems
The relationship between small businesses and their financial service providers is on the cusp of a fundamental transformation, according to industry leaders who gathered at the Nordic Fintech Summit. At a panel session entitled "Rewiring SME Finance: The Rise of Embedded Ecosystems", experts outlined how the traditional banking model is being reimagined through the integration of financial services into accounting platforms.
In a wide-ranging discussion, speakers Christie Holm Kristensen from Danske Bank, Juho Putkonen from Accountor Software, Linus Olofsson from Visa, Johannes Hill from Mynt, and Anton Danielsen from OP Financial Group painted a picture of a future where accounting software becomes the primary interface for SME financial services.
The accounting talent crisis driving innovation
The panel began by addressing a looming crisis in the accounting industry: approximately 75 per cent of accountants are expected to retire within the next decade, while few young professionals are entering the field.
"Accounting is an important part of managing your business, and through AI, it's set to become more competitive and global, breaking the country-specific mold that still dominates today," noted Anton Danielsen from OP Financial Group.
Juho Putkonen from Accountor Software was even more direct about the pace of change: "Ninety percent of accounting is already automated, and accountants' roles are shifting towards supporting and helping companies rather than just checking for errors."
This transformation is happening against a backdrop of rapidly advancing automation that is changing not just how accounting is done, but where financial services are accessed and who provides them.
The battle for the SME interface
A central question emerged throughout the discussion: who will own the relationship with SME customers in this new landscape? Traditionally the domain of banks, the customer interface is increasingly contested as accounting and ERP platforms integrate financial services directly into their offerings.
Johannes Hill of Mynt observed that the reality of SME behaviour already points to a winner: "The average SMB spends way more time in accounting software than in bank UIs each month. That's a big change factor."
This shift in user attention has profound implications for service delivery, with Danielsen stating that: "The company creating the best user experience will own the customer. It depends on where the entrepreneur gets stuff done and which software platforms they choose to run their business."
Data as the new currency
The panel highlighted how accounting platforms' access to real-time business data provides them with a significant advantage over traditional banks when offering financial services.
"Accounting systems have up-to-date data, which we can deliver to banks automatically with consent," explained Putkonen. "Applying for a loan, for example, is manual for small companies now, but can be automated. If we embed loan services, all related accounting can also be automated—saving job hours and providing a better user experience."
Hill reinforced this point by referencing his experience at Visma, where "fresh, embedded data drastically improves credit scoring over older models," particularly benefiting micro-enterprises that have historically been underserved by traditional banking.
The evolving ecosystem
Despite the challenges to traditional banking models, the experts agreed that banks will remain essential components of the financial ecosystem, though their roles will evolve significantly.
"Banks will remain regulators, not replaced by accounting firms; our role will be to provide services through software and nurture those customer relationships," said Danielsen, acknowledging the coming changes while outlining how banks can remain relevant.
Putkonen offered a more definitive timeline: "By 2028, some SME lending will move from bank platforms to accounting software. Banks should accept and support this shift, even as their business models are challenged."
Beyond automation: the advisory frontier
As automation handles increasing portions of traditional accounting work, the value proposition for accountants and financial service providers is shifting toward advisory services.
"The missing aspect for a while has been the advisory part. Once everything is automated, the advisor creates value," Putkonen noted.
Hill expanded on this theme: "Ten to fifteen years ago, accountancy firms focused on manual hours; now, they want to automate daily tasks and focus on advisory... banks struggle as their branch networks shrink; they'll need to invest in advisory functions."
Regulatory catalysts
The panel pointed to upcoming regulatory changes as accelerators of this transformation, particularly the European Financial Data Act, which will facilitate greater data sharing between financial institutions and third parties with customer consent.
"With the upcoming Financial Data Act in Europe, entrepreneurs will expect services where the line blurs between accounting and financial products," Danielsen explained, suggesting that regulatory frameworks will help normalize embedded finance solutions.
The future: collaboration and specialization
As the Nordic Fintech Summit panel concluded, the experts agreed that the future will be characterized by deeper collaboration between banks, accounting platforms, and specialized service providers, all working to create seamless experiences for SMEs.
Linus Olofsson from Visa summarized the network's position: "From Visa's perspective, we enable both platforms and banks to serve customers. Serving as the payment schema, we're focused on aspects like fraud prevention as well. We'll continue supporting both banks and platforms."
The message from the Nordic Fintech Summit was clear: the financial revolution for small businesses is well underway, with accounting platforms increasingly positioned as the gateway to a comprehensive suite of financial services. For traditional banks, adaptation and partnership—rather than resistance—appear to be the path forward in this rapidly evolving landscape.
Part of Nordic Fintech Summit