Embedded lending has been around for a while now. Initially, it was looked upon with caution while people were still grappling with deciphering its true potential. Today, it has become a powerful catalyst, heralding a new era in digital lending.  

While the future looks promising, banks, lenders, businesses, and SaaS companies play a crucial role in the embedded lending ecosystem. Brokers in particular have found themselves in an interesting position, where collaboration has the potential to be immensely rewarding. Brokers and financial institutions are joining forces to embed credit offerings into digital experiences, with AI, machine learning (ML), and real-time data powering the transformation. 

This article explores how these partnerships work in practice, how technology is redefining risk and customer experience, and what makes collaborations between brokers and financial institutions successful in the UK. 

Why Brokers Matter in Embedded Lending 

It’s essential to understand why brokers play a pivotal role in embedded lending, even though they don’t fund loans themselves.  

Brokers often form the customer-facing platforms that embed financial products within digital ecosystems. This can include e-commerce checkouts, accounting software, or other platforms. They control the customer journey, own valuable contextual data, and provide warm, high-intent leads to lenders, facilitating conversions and scale. 

Let’s delve deeper into how brokers collaborate with financial institutions and what constitutes successful collaboration. 

Step 1: Forming Partnerships Built on Clear Roles and Compliance 

Embedded finance partnerships begin with careful contractual and regulatory alignment: 

• Commercial Agreements: Brokers and financial institutions define how revenue, data, responsibilities, and liabilities are shared. 
• Regulatory Clarity: FCA regulations require a clear understanding of whether brokers act as credit brokers, introducers, or agents, each with distinct obligations. 

Example Scenarios: 

• Credit Broker: A broker who helps you compare loans from several lenders and assists you with the application process. 
• Introducer: A car dealership refers you to that finance company, but doesn’t help with the financing itself. 
• Agent: A call centre employee working for a credit card company helps you apply for a card, acting on behalf of the lender. The agent is an employee of said lender. 

This foundation ensures trust and regulatory compliance, non-negotiables for long-term success. 

Step 2: Technology Integration Enables Seamless Experiences 

Technology is the backbone of embedded finance collaboration: 

• API Connectivity: Brokers integrate their platforms with FI systems via secure APIs, enabling data exchange for eligibility checks, loan applications, and status updates. For example, brokers can leverage Pulse’s Unified Lending Interface and seamlessly integrate funding products into their platforms. The broker can leverage the power of AI, ML, and real-time data with an API-first data architecture and embed lending into their existing system or platform. The lender will provide the finance, and the broker can focus on customer-facing responsibilities and facilitate lending, while Pulse offers the technology necessary to empower embedded lending via API-first lending solutions.

• Data Sharing via Open Finance: Open banking has matured into open finance, allowing brokers to share pensions, investments, and insurance data alongside banking information. This enriches credit decisioning models. 

Step 3: Customer Journey and Data Handling 

Brokers excel in acquiring and managing customers: 

• They engage users via tailored digital experiences, targeting moments of financial need. 
• They enrich data beyond traditional credit files by collecting transaction history, behavioural signals, and platform-specific insights. 
• Brokers also manage customer consent and compliance to ensure that data sharing aligns with the FCA and GDPR regulations. 

This rich, consented data enables more accurate and inclusive underwriting. 

Step 4: Loan Origination and Servicing Made Easy 

Once credit is approved: 

• Brokers handle the digital onboarding process, including electronic signatures and documentation. 
• Financial institutions disburse funds directly to customers’ accounts. 

Step 5: Aligning Incentives and Revenue Models 

Financial institutions provide the capital, but brokers: 

• Earn commissions or fees for loans originated through their platform. 
• Benefit from recurring revenue when customers renew finance. 
• Help lenders lower acquisition costs and increase scale efficiently. 

This win-win financial model sustains long-term partnerships. 

Use Case
Let’s assume Broker X wants to collaborate more closely with new UK-based banks. Instead of building the infrastructure from scratch, the broker decides to integrate existing systems with Pulse’s Unified Lending Interface, which can be done easily via API integration. The broker can leverage Pulse LOS, reduce application times to under 3 minutes and embed funding options from banks and lenders that are onboard in the Pulse ULI ecosystem. Thus, brokers can improve conversions, offer customised funding solutions to customers in a timely and contextual manner, and enhance revenue, customer retention, and business volumes. 

Real-World UK Examples in 2025 

Pulse’s ULI: Brokers, banks, lenders and financial institutions can leverage Pulse’s ULI in several ways. Pulse LOS reduces loan application time to under 3 minutes, while Einstein aiDeal can auto-decision 95% deals in under 60 seconds with customisable criteria. Pulse LOS and Einstein aiDeal encompass loan origination through to fund disbursement. Post disbursement, Pulse LMS can help track repayments, defaults or delays. To learn more about Pulse ULI, contact us today. 

Conclusion 

In the UK’s embedded finance landscape of 2025, brokers and financial institutions form a symbiotic ecosystem. Brokers are the most important link between customers and data-driven intelligence. Financial institutions provide funding, expertise in compliance, and credit underwriting.  

Together, they offer bespoke lending services that align with FCA regulations. SaaS companies like Pulse offer the technology, an API-first data architecture, and a range of solutions that help both brokers and lenders speed up, automate, and simplify the entire lending process, even after the loan has been disbursed. 

If you’re a broker or financial institution looking to thrive in embedded finance, investing in strong partnerships with SaaS companies like Pulse to leverage solutions, AI-driven technology, and regulatory alignment will be your pathway to success.