How Petal founder Andrew Endicott proved alternative credit works, and what he's betting on next

The credit industry is shifting how it evaluates borrowers. Traditional credit scoring has left over a billion people without access to financial services, but lenders are increasingly turning to alternative data—bank transactions, spending patterns, real-time financial behavior—to make more informed decisions about creditworthiness. Andrew Endicott has been at the center of this shift. As co-founder of Petal, he pioneered what they called “cash flow underwriting”—using real-time bank data alongside traditional credit reports to approve people for credit cards who would otherwise be turned away. The approach worked: Petal raised nearly $1 billion, proving that alternative underwriting isn’t just better for consumers—it’s good business.

The traditional banking model for small and medium-sized businesses has reached an inflection point. Before banking centered on straightforward product relationships, like loans, deposits, and basic services. However, banks are evolving recognizing that their SMB clients need operational partners who understand the unique challenges of running a business while wearing multiple hats. KeyBank has embraced this evolution, positioning itself as a consultative partner for its SMB customers. Mike Walters, President of Business Banking at KeyBank, describes the bank's approach as fundamentally client-centered. "We try to center the client in every decision we make," Walters explains. "Our clients in the small business space are unique. We use the term owner-operator at KeyBank and we use it very intentionally, because these business owners, they don't just own the business, they run the business." This distinction shapes everything about how KeyBank serves its business clients. The bank has moved beyond traditional banking silos to create integrated service ecosystems that address the full spectrum of business operations. Now the bank focuses on understanding how money flows through a client's business and identifying opportunities to create efficiencies. The approach represents a broader industry trend toward comprehensive business partnerships, where banks want to use their central role in SMB operations to become strategic advisors and enablers for everything from cash flow optimization to operational efficiency.

While attention often focuses on developed markets, the most exciting fintech innovations are emerging where mobile technology, young digital-native populations, and gaps in traditional banking converge. These regions aren’t just adopting Western models – they’re creating entirely new paradigms that may eventually reshape global finance. Today I’m joined by Nadia Costanzo, Director of Banking for the Middle East, Africa, and Latin America at Wise. Nadia drives Wise’s expansion across these regions by building banking relationships, securing licenses, and navigating complex regulatory frameworks. Her background is uniquely valuable – before Wise, she worked with Kiva in Nairobi facilitating microfinance across Africa, contributed to the World Bank’s Universal Financial Access agenda, and worked directly with microfinance institutions in Paraguay. Today, we’ll explore how fintech evolves differently across emerging markets, examine key challenges, and discuss surprising innovations where traditional banking is limited. We’ll also consider what these developments mean for established financial institutions looking to engage with these dynamic markets.

The traditional lending officer is facing their biggest disruption in decades. Gen AI is oozing into financial services quickly and deeply enough that it's already impacting how we evaluate credit risk and make lending decisions. This tension between human judgment and algorithmic precision is the latest focus in our ongoing AI series exploring how artificial intelligence is transforming financial services. Joining us are Jonathan Kolozsvary, Global Head of Small Business at Visa, who brings insights on how transaction data can unlock lending opportunities that traditional credit models miss. And Patrick Reily, co-founder of Uplinq and Malcolm Baldrige Award recipient, whose AI predictive models are already being used by the Federal Reserve. Together, they tackle a critical question: Are we witnessing the evolution of the lending officer, or are we approaching a future where algorithms handle what humans have done for generations? The answer will shape the future of lending and the broader relationship between technology and trust in financial services.

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.