Financial institutions are losing an average of $100 million annually due to a fundamental disconnect between fintech innovation and traditional financial systems. A phenomenon FIS and Oxford Economics have termed the "Harmony Gap."

"We hear a lot from people about the challenges and friction they see in the money lifecycle," explains FIS CTO, Firdaus Bhathena, at his firm’s Emerald Conference at the end of May in Orlando, Florida.. "But we had not been able to quantify that." His firm’s collaboration with Oxford Economics is changing that, providing hard data on what many suspected but couldn't measure.

The new research, based on surveys of 1,000 executives across the US, UK, and Singapore, reveals that disharmony in the financial system is a costly reality affecting everything from cybersecurity to operational efficiency. As Margaux McLoughlin of Oxford Economics puts it, "When there are disruptions across the money lifecycle, that's what we call disharmony."

Understanding what the research describes as a Harmony Gap requires examining how the modern financial ecosystem operates, why the human cost extends far beyond corporate losses, and what organizations can do to bridge the disconnect between innovation and implementation. The path forward requires a rethinking of how financial institutions approach systemic challenges in an interconnected world.

Embedded finance offers a chance for fintech firms, vertical SaaS companies, and marketplaces to drive revenue growth and build a sticky offering. 

Always strapped for cash and with their owners juggling multiple responsibilities at once, small businesses increasingly adopt vertical SaaS platforms to run their operations, the demand for integrated banking, payments, and lending solutions continues to accelerate.  

For firms that can successfully navigate this landscape, embedded finance offers a powerful pathway to differentiation in an increasingly competitive market while addressing the critical financial needs that traditional institutions have struggled to meet effectively.

On the show today, I am joined by three leaders in the space sharing insights into what it takes to succeed:

Yoseph West, Co-founder and CEO of Relay which is a digital business banking platform serving SMBs,

Sol Lax, CEO of Revenued, a leader in revenued-based financing and 

Caleb Avery, founder and CEO of Tilled, a modern embedded payments provider for software companies

Tune in to hear us plot the market shift from embedded payments to lending, underwriting challenges for thin-file customers, and strategic partnership models that create comprehensive solutions for small businesses. 

In this episode we will examine two case studies: how  Relay and Tilled are implementing embedded lending in their platforms through their work Revenued and sketch out a plan for fintechs that want to mature their embedded finance offerings to offer sophisticated products like lending and working capital to their SMB customers.

If you’re a platform serving SMBs, embedded lending isn’t just a feature – it’s a way to make your product indispensable.  As customers look for financial solutions that meet them where they are, platforms that deliver seamless, flexible capital access will win.

This episode is a must-listen for any SaaS, fintech, or ma

Traditional banking services alone aren't enough to serve the diverse needs of small and medium-sized businesses. Banks need to go further and think of their digital footprint as a launching pad for SMB owners by adding value-added services.

On the show today, Mark Valentino, President of Business Banking at Citizens, and Taira Hall, EVP and Head of Enterprise Payments at Citizens, join to talk about how the bank is building more comprehensive solutions through value-added services for SMB customers.

Valentino and Hall dive into how the bank is moving away from a purely transactional relationship to become more of a command center for SMB owners, highlighting how SMB owners' needs and the broader focus on CX is leading this change.

Tune into the show to explore how traditional FIs can evolve to become modern digital hubs for SMB owners through the addition of Value Added Services like spend management, a focus on APIs, and a robust partnership-first strategy. Both Valentino and Hall provide a strategic overview and practical examples – melding the worlds of business banking and payments together to forge a powerful narrative about how Citizens is evolving to meet the changing expectations of small business owners.

Nine months into her role as Chief Product and Technology Officer at Temenos, Barb Morgan is focused on a simple principle when it comes to product strategy: quality over quantity. "We want to build less, but build it better," Morgan said during a conversation at the Temenos Regional Forum Americas 2025 held May 28-30 in Miami.

Temenos' approach centers on co-creating meaningful solutions with bank customers rather than rushing to market with multiple products. Morgan emphasized that the company is "really focused on making sure that whatever we put out there is meaningful," as the industry navigates what she calls the "AI hype curve."

Morgan's insights reveal why many banks struggle with AI adoption despite the technology's promise. The real barriers aren't about computing power or algorithms — they're messier problems involving decades-old data systems that were never designed for AI and organizational cultures that haven't caught up to the pace of technological change.

Her conversation also detailed Temenos' bet on bringing innovation closer to customers, such as through its new hub in Orlando designed for co-creation, and why the company is taking a strategic and deeply integrated approach to AI that enables banks to deploy AI-powered solutions faster and safer.

Non-bank financial institutions (NBFIs) are capturing more and more market share in SME lending by leveraging technology to offer quicker lending solutions. This puts pressure on FIs to evolve their approaches while managing costs and improving service quality.

Finastra’s Principal Product Manager Kristen Lista joins the Tearsheet podcast today to discuss the most critical areas where FIs need to focus: consolidating technology to improve efficiency, decreasing the time between application and access to funding, enhancing back-office operations, and creating more client-centric experiences.

Lista offers a valuable look inside the complex web of challenges that FIs are facing when trying to improve the SME lending products. From technology integration strategies to practical advice on process improvement, Lista offers an actionable blueprint that can help FIs better compete in the SME lending space, driving growth and customer loyalty.

Welcome to the Tearsheet Podcast, where we explore financial services together with an eye on technology, innovation, emerging models, and changing expectations. I'm Tearsheet's editor in chief, Zack Miller.

As digital assets mature beyond speculation into practical financial tools, forward-thinking institutions are evaluating how programmable money fits into their product strategies. For traditional banks, it's an opportunity to modernize settlement systems and explore new revenue streams. For fintechs, it's about embedding digital asset capabilities without the regulatory and technical overhead.

Today, I'm joined by Ben Milne, whose journey from founding payments innovator Dwolla to now leading Brale offers interesting insights into the evolution of financial infrastructure. At Dwolla, Ben built an API-first payments platform that helped modernize ACH transfers. Now with Brale, he's creating the infrastructure layer for compliant stablecoin issuance across multiple blockchains.

What's particularly notable about Ben's transition is how it reflects broader shifts in the financial services landscape—from renovating legacy rails to building entirely new ones. In our conversation, we'll unpack how this experience shapes Brale's approach to working with both incumbents and challengers, the strategic considerations for institutions exploring stablecoins, and what product and strategy executives should be planning for in this rapidly evolving space.

The financial services industry is undergoing deep technological change. API-first architectures are creating new possibilities for integration. Digital platforms are democratizing access to investing. Artificial intelligence is personalizing wealth management. Digital-first brokerages are redefining what's possible. Global investing barriers are falling. Traditional firms are navigating complex digital transformations. And infrastructure companies are scaling to meet growing demands.

To help us understand these critical trends, we're joined by Harry Temkin, Chief Digital Officer at DriveWealth. DriveWealth is at the forefront of embedded investing technology, powering fractional trading and digital investment experiences for partners across the globe. As CDO, Harry leads the company's technology strategy and digital innovation initiatives, bringing decades of experience in financial technology.

Tearsheet is excited to launch 4dFI Capital Partners, an exclusive group of out-of-the-box builders and investors building a community to invest in the next wave of fintech startups around the world. If you are an accredited investor and want to learn more, sign up here

Across Latin America, we’re witnessing a massive shift as regions traditionally dominated by cash transactions begin embracing digital financial tools. This transition represents more than just technological adoption—it’s creating new economic opportunities, enhancing financial inclusion, and building resilience against growing cybersecurity threats.

The numbers tell a compelling story: a $448.4 billion digital payment opportunity exists across Latin America, the Caribbean, and the U.S. With nearly 12 million small retailers processing $362 billion in B2C sales — 43% still in cash —a nd 90% of B2B transactions between small retailers and suppliers handled through traditional methods, we’re looking at a financial transformation that’s just beginning.

Today, I’m joined by someone at the forefront of this transition. Walter Pimenta serves as Executive Vice President of Commercial and New Payment Flows for Mastercard Latin America, where he’s leading initiatives to expand SME acceptance solutions, scale enablement through strategic partnerships, and strengthen cross-border payment capabilities.

Walter’s team is also tackling another critical trend: the growing cybersecurity challenges facing SMEs, with recent research showing 46% of small businesses have experienced cyber-attacks, resulting in bankruptcy for nearly 1 in 5 affected companies.

As General Manager of PayPal’s Small Business and Financial Services Group, Michelle Gill is responsible for bringing together the products and services that help small business owners run and grow their business. She is my guest for this episode of the Tearsheet Podcast.

Michelle brings deep financial expertise and experience building platforms and tools that help customers manage their finances to her role on PayPal’s Senior Leadership Team. Michelle was previously Senior Vice President of Intuit’s business money management, payment, and banking service, QuickBooks Money Platform. Prior to Intuit, Michelle successfully integrated and expanded SoFi’s lending business as General Manager and Executive Vice President of Consumer Lending and Capital Markets. Drawing on her early career experience as a Managing Director and Partner at Goldman Sachs, Michelle also served as SoFi’s Chief Financial Officer before moving into the product leadership role. Before that, Michelle spent a decade leading the U.S. Assets business for global investment firm Sixth Street Partners.

Given her career and experiences, Michelle brings a broad view of fintech innovation. She focuses on user-centered solutions. At PayPal, she leads efforts to help entrepreneurs navigate the complicated web of financial tools they often depend on.

“The preponderance of [small businesses] use greater than 15 tools to run their business,” she shares. “What they got into business for is the passion… and yet they end up spending more time on things that are not what they love.”

Our conversation explores how PayPal is actively trying to reduce that complexity. It does so not by offering more tools, but by making the ones they already use work better together. Gill outlines the strategy behind PayPal’s cash flow-based lending model and how it fits within their open ecosystem, whether it’s digital lending, embedded finance, or leveraging open banking.

Investment in data is the hallmark of successful Gen AI implementations, according to Citizens’ Chief Data and Analytics Officer, Krish Swamy.

Giving us a system wide view of how Citizens is leveraging Gen AI, Swamy joins the podcast to talk about harnessing the power of data to drive decision-making, enhance customer experiences, and navigate the complexities of digital transformation in the banking sector.

Our conversation delves into the challenges and opportunities of building a data-driven culture within a traditional banking environment, and how Citizens is positioning itself at the forefront of financial innovation through strategic analytics initiatives.

Swamy, who also heads the firm’s Generative AI Council, shares his vision for the future of data in banking and the tangible ways Citizens is turning data insights into meaningful actions that benefit both the institution and its customers.