AI and automation can unlock greater access to capital for underserved clients, lenders and venture capitalist investors agree.

The rise of automated lending solutions was a recurring theme at the recent Bank Automation Summit 2025 in Nashville, Tenn., where financial institutions and fintechs explored challenges faced by small-to-medium-sized businesses.

Opportunities for fintechs

AI-enabled lending is a common use case for AI, Brittani Roberts, partner at fintech-focused venture capital firm Fintop Capital, said during the Bank Automation Summit 2025 demo challenge.

Several fintech startups participating in the challenge focus on the lending market, and three of those made a splash at the event, including the winner, AI-driven loan origination process service provider Lama AI.

Lama leverages AI to assist financial institutions in underwriting and approving loans for SMBs, which often face challenges securing approval, Dor Bariach, Lama’s director of marketing and partnerships, told Bank Automation News following the challenge.

Fintech Monit, on the other hand, provides FIs with insights such as cash flow analysis, forecasting and industry benchmarking. It was founded simplify processes for both SMBs and the FIs they bank with, Steve Dow, co-founder and chief executive, said during Monit’s demo presentation.

“In a sort of Zillow-type experience, we can provide a business owner an estimate of what their business is worth and then provide a call to action to talk to their banker about the next steps,” Dow said.

Meanwhile, fintech startup Appli’s AI-powered financial analysis calculator is designed to enhance online interactions between lenders and borrowers, including providing personalized feedback for loan applications, co-founder and Chief Executive Tim Pranger said.

Scaling up with AI

AI can enable financial institutions to speed the application and approval processes while improving risk assessment, Katie Quilligan, investor at VC firm BankTech Ventures, said during an event panel focused on fintech investment.

Community banks, for example, can leverage automation to more efficiently evaluate and process smaller-dollar small business loans previously too resource-intensive to underwrite, Quilligan said.

“The ability to do that at scale becomes a lot more exciting for banks as they continue to think about how they can expand and serve their customers better,” she said.

Prioritizing SMB access to capital

Making it easier for SMBs to access capital should be a priority for financial institutions, Mark Williams, head of business banking sales transformation at Citizens Bank, said in an SMB solutions-focused panel.

“Fifty-nine percent of small business owners under, say, $1 million, finance their business with personal credit cards,” — Mark Williams, head of business banking sales transformation, Citizens Bank

The $217.5 billion Citizens, which plans to be 100% on the cloud by the third quarter of this year, is revving up product development, Ajay Punia, head of fraud risk and transmissions engineering, recently told BAN. New lending solutions are in the works, he added.

“The way the market is trending, lending is an area where pretty much all the financial institutions will be investing,” he said.

Follow coverage of Bank Automation Summit 2025 at finainews.com.

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