Vaidas Adomauskas, the Chief Product and Technology Officer at smeGo, has a diverse background in software engineering, project management, and product development. Vaidas brings a wealth of experience to his role. In our conversation, we explore his journey, from studying software engineering in Vilnius to working for major companies in the UK and eventually returning to Lithuania to join smeGo.
Throughout the interview, Vaidas shares insights into smeGo’s unique position in the market, catering to established SMEs often overlooked by traditional banks and fintechs. He discusses the pivotal role of emerging technologies, such as AI and automation, in streamlining processes and enhancing the customer experience. Additionally, Vaidas highlights the importance of agility and efficiency in a competitive landscape, emphasizing smeGo’s commitment to staying lean and nimble while serving a growing customer base across Europe.
Join us as we uncover Vaidas’s vision for smeGo, the impact of technology on the future of SME lending, and his personal pursuits outside of work.
Question: Let’s kick off with you. Could you give us a bit of background? How did you end up where you are today?
Answer: Sure thing. I’m a software engineer by training, but from the outset, I’ve been fascinated by problem-solving and understanding customer needs beyond just coding. After earning my bachelor’s in Vilnius and a master’s in Gothenburg, Sweden, focusing on management, I ventured into project and product management. I started my career in Sweden in security technology, then moved back to Lithuania, working in advertising technology before co-founding a startup called WaraPay. While we eventually closed shop after five years, the journey was invaluable. I then relocated to the UK with my family, where I helped to build Railsbank, a banking as a service (BAAS) provider, and later was leading Revolut Business, aiding SMEs across different markets. Subsequently, I joined Uncapped as Chief Product Officer, driving innovation in SME lending, particularly in revenue-based financing for e-commerce. A significant shift followed when I helped launch a digital bank in the Philippines. Now, back in Lithuania, joining smeGo feels like a natural fit. I bring international experience, particularly in high-growth companies and navigating regulatory landscapes, which aligns well with smeGo’s vision.
As for our vision at smeGo, while the market is crowded, we’ve carved out a unique space. Unlike many fintechs focusing on micro SMEs, we cater to established SMEs with revenues exceeding a million. These businesses often get overlooked, despite contributing substantially to Europe’s GDP. While fintechs target micro SMEs and banks cater to large corporates, there’s a gap in serving SMEs in the middle. These businesses face challenges with archaic processes and rejections from traditional banks, hampering their agility. That’s where smeGo steps in. Additionally, our proactive investment in technology sets us apart. It’s not just about digitizing processes but leveraging tech to enhance speed, reduce risk, and provide a seamless experience for our clients. With significant investments in both finance and technology, we’re poised to redefine the landscape for established SMEs in Europe.
Q: Can you share some insight on how exactly smeGo utilizes this tech to streamline this whole process?
A: Absolutely. As I mentioned, when it comes to tackling any problem, there are typically two approaches – one from a finance perspective and the other from a tech perspective. Both have their advantages and disadvantages, and the real magic usually lies somewhere in between. So, we’re not aiming to make everything entirely self-service. For instance, if I’m managing a company with a 5 million turnover and 20 employees, expecting me to handle everything on my own isn’t realistic. Typically, businesses of this scale have a finance department, accountants, and integrated accounting software. Therefore, our focus is on tailoring the application process to accommodate this structure. This means that your account executive or finance team can fill out the application on your behalf. As a founder or CEO, your role would then be to review and approve it. When it comes to gathering necessary documents or information, we leverage technology, automation, and AI to expedite the process. Our goal is to offer simplicity and speed while still accommodating complex deals. We aim to strike a balance, using technology for routine tasks and expediting processes, while also ensuring that we don’t over-customize deals for larger corporations. It’s about finding that middle ground where our technology supports both the customer-facing experience and internal operations, enabling us to achieve speed and efficiency without inflating our headcount and costs unnecessarily.
Q: You mentioned AI, so how do you see these emerging technologies shaping the future of the industry? I know we’ve incorporated it to some extent, and I understand you’re a bit of an evangelist for AI as well, a big fan. So, what do you foresee in the next, let’s say, three years? How will it change things for us and our customers?
A: The core of our technology lies in how we originate, underwrite, and manage the loan book. This aspect is crucial, involving both automation and data points. With human assistance and digital tools, we swiftly tailor deals to fit your needs and execute them promptly. This demonstrates the effectiveness of our automation and technology, including AI. It aids in summarizing information, providing scores, and employing our proprietary models to calculate various risk scores required by underwriting teams.
We’re not selling products to our customers; we’re selling the speed and efficiency of financial services. Starting with credit, we then layer additional services, all enabled by technology. These services are swift, yet you always have access to a relationship manager. You can always discuss and customize deals according to your needs, especially if you’re dealing with more complex situations due to your established status.
I’ve had the opportunity to work in several progressive companies that heavily invest in data science, machine learning and AI. However, it’s important to note that we need to avoid treating AI as just a buzzword, as it’s become somewhat overused. From our perspective, we see AI as a significant enabler with the potential to assist us in numerous ways. From a customer standpoint, AI can greatly enhance the experience. For instance, when applying for a loan, traditionally, you might be asked to provide a detailed business plan. If you haven’t prepared one, it could take hours to create. In such cases, we request specific details from you, which AI can then use to generate a document. While the AI-generated document serves as a starting point, you, as the customer, still have the opportunity to review and edit it to ensure accuracy and completeness. This is just one example of how AI can streamline processes and improve efficiency on the customer side.
Internally, AI plays a similar role, augmenting rather than replacing human efforts. Take our onboarding process, for instance. When conducting adverse media checks, there’s a lot of information to sift through. Automation helps gather this data efficiently, while AI aids in summarizing and providing insights. However, it’s essential to emphasize that humans still play a crucial role in reviewing and making final decisions based on this information. Overall, AI is poised to enhance productivity across departments, enabling employees to work smarter and faster. It’s not about replacing jobs but rather empowering our teams to perform at their best.
Q: Those time-consuming repetitive tasks can be such a waste of human effort sometimes.
A: Absolutely. It’s a natural evolution, I believe. If we look back a hundred years, when tractors replaced manual labour in agriculture, there were concerns about job loss. Then with the advent of computers and the internet, similar fears arose. However, jobs evolve. If you adapt and embrace new technologies, your role may change, but it won’t necessarily disappear. I think the vast majority of jobs will be enhanced by AI in the future, much like how every job now involves using a computer in some form.
Q: Let’s talk about your competitive landscape. As you expand beyond Lithuania into the broader European market, competition is fierce. How do you plan to leverage emerging technology to maintain a competitive edge?
A: So, I would phrase it like this: we’re already positioned uniquely because these established SMEs are often overlooked. Yes, they can turn to small FinTechs, but those don’t suffice for bigger, more complex needs. And when they turn to incumbent banks, they face slow processes. Our tech stack is tailored and modular, designed to address these challenges effectively. The key now is to capitalize on this position. First and foremost, we need to ensure robust sales and distribution channels. Even with a great product, if you can’t sell it, it’s irrelevant. That’s why I joined the team – our product-market fit is proven, but my job is to ensure that it remains best-in-class. Whether we have 20 or 100 salespeople, we need to maintain our conversion and satisfaction rates. There’s a lot of synergy between product marketing and sales – it’s a loop. Ultimately, our goal is clear: when businesses think of a substantial loan, they should think of us first. And for the next two years, we’re focused on maintaining our agility and efficiency. We want to remain lean and fast, unlike traditional big companies.
Q: So staying agile and adapting as you grow is crucial, isn’t it?
A: Absolutely. It’s not just about hiring more people when faced with a problem. Often, if you can’t solve it with your existing team, adding more won’t necessarily help. It’s about doing more with less, leveraging technology and our funds intelligently to maintain our agility.
Q: And now for a fun question to wrap things up. What do you enjoy doing outside of work? How do you unwind?
A: Well, I have a wife and two kids, so when I’m with them, I’m usually having fun. It’s less about the activity itself and more about who I’m with. Whether it’s going to the park or swimming, everything is more enjoyable with my family. Travelling is another passion and we are exploring the world together. And being from Lithuania, I’m also a basketball fan. We have some great players who’ve made it big, and my kids enjoy it too. We even have a hoop in the garden for some family fun. So those are my top three.
Q: You summed it up perfectly. It’s all about spending time with loved ones and doing what brings you joy, right?
A: Exactly, exactly. It’s the company that matters most. You can make any activity enjoyable when you’re with the right people.
Q: Absolutely. Well, thank you for this insightful conversation and I’m eager to see smeGo’s future unfold.
A: Thank you for having me. It’s always a pleasure to share thoughts and experiences. Here’s to a bright future. Let’s make it great.
