Lili has introduced Lili Connect, an Embedded Finance integration aimed at simplifying banking, accounting, and tax management for small businesses. Through Lili Connect, partner companies can integrate Lili's financial management tools into their platforms, enabling clients to manage finances more efficiently.

Lili Connect's suite includes a business checking account, automated transaction categorisation, invoicing and bill pay solutions, and tax-saving tools, such as the Tax Bucket, designed to help small businesses set aside funds for tax payments. Partner companies also gain access to an embedded application process, allowing their customers to open business accounts online within minutes, addressing a common pain point with traditional banks' lengthy onboarding processes. The platform diverges from traditional Banking-as-a-Service (BaaS) models by offering an Embedded Finance solution that minimises operational burdens, such as risk management, fraud prevention, and compliance.

This enables partners to provide banking services without the challenges associated with managing financial infrastructure, improving both user experience and operational efficiency. Partners adopting Lili Connect benefit from new revenue streams and better customer loyalty, as well as access to financial data that can improve the customer experience. This Embedded Finance solution also supports growth for partner companies by enabling more tailored financial solutions for small business clients.

Lili has already established partnerships with major business service providers, including Dun & Bradstreet, to assist clients in building business credit, as well as with companies like TouchSuite and Convesio to support merchant services and ecommerce. These collaborations reflect a growing trend in the Embedded Finance sector, which, according to Dealroom, could reach a market size of USD 7.2 trillion by 2030. Banking solutions for small business needs Small businesses often face significant banking challenges that can hinder their financial operations.

Traditional banking processes typically involve lengthy and complex onboarding, making it difficult for small business owners to access the financial services they need. High fees and limited options for managing finances within a single platform also create barriers, as these businesses often lack access to tools tailored to their specific needs, such as automated tax planning and streamlined invoicing. Lili’s offerings, including rapid account setup, automated transaction categorization, and tax-saving features, directly address these issues, providing a more accessible and efficient solution for small businesses.

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