Lenders still rely on static snapshots, data that’s often outdated by the time a credit decision is made. Applications can take days or even weeks to process. Affordability checks are based on stale financials. This is where automated underwriting comes in. Lenders can now connect directly to real-time business data, eliminating the need for separate applications or back-and-forth paperwork. Underwriting becomes dynamic and deeply contextual

Traditional Underwriting – What’s broken?

For most lenders, underwriting still follows a fixed and familiar process. A borrower submits an application. The lender collects documents, usually bank statements, tax returns, and financial reports. Then, the risk is assessed based on these static inputs.

But in a fast-moving market, this model creates unnecessary friction: 

• Outdated data at the time of review 

• Slow approval cycles due to manual document checks 

• High drop-off rates as borrowers lose patience 

This approach also fails to capture crucial context. Lenders may approve a loan for a business already in distress or deny a healthy one due to a missing nuance. The end result is poor risk profiling, missed revenue, and a frustrating borrower experience. 

Introducing Automated Underwriting: What It Means for Lenders

Automated underwriting replaces outdated, static financial reviews with real-time insights powered by: 

• Open Banking 

• Open Accounting 

• Platform APIs 

The benefits are clear: 

• Faster, more accurate decisions 

• Improved risk management 

• Reduced manual workload 

• Lower application drop-offs 

The Embedded Lending Shift

Embedded Lending makes a positive difference. Instead of asking borrowers to come to lenders, the lending options can be offered to them via their existing systems. For example: 

• A business reviewing cash flow in its accounting software might receive a funding offer directly within the dashboard. 

• An online seller experiencing a sales spike can instantly access working capital on their eCommerce platform. 

This contextual delivery improves the borrower experience and transforms acquisition for lenders. It reduces CAC, improves targeting, and provides a scalable path to reach underserved segments.

But for embedded lending to deliver its full potential, it needs more than just contextual placement of offers; it requires the ability to assess and approve credit in real time. That’s where automated underwriting comes in. By pairing embedded lending’s seamless distribution with automated underwriting’s instant decision-making, lenders can turn every borrower interaction into an opportunity for fast, accurate, and relevant funding. 

Banks, lenders, and brokers can incorporate automated underwriting into their lending process by leveraging solutions like Pulse’s Einstein aiDeal. Capable of handling massive volumes, Einstein aiDeal can decide 90% of deals in less than 60 seconds with customisable criteria that can be altered as and when required. 

Automated Underwriting and Embedded Lending

When automated underwriting is combined with embedded lending, the result is a powerful ecosystem. 

Together, they enable: 

• Continuous lender–borrower connection

• Real-time updates on affordability and risk 

• Instant, pre-approved offers delivered within everyday platforms 

This combination drives scalable growth, boosts borrower retention, and improves risk-adjusted returns. 

How Platforms Like Pulse Enable This Shift

To make automated underwriting work at scale, banks and lenders need intelligent systems like Pulse that can interpret that data and help you take action instantly, within existing digital environments. 

Pulse’s Einstein aiDeal, an AI-powered underwriting engine, can be seamlessly integrated into existing platforms and systems lenders already use. It automates credit decisions using real-time financial data, identifies patterns, flags risk, and delivers instant approvals.

Einstein aiDEAL uses live financial data, combined with intuitive algorithms, to assess deals in real-time. It’s built to reduce friction in the loan process by analysing performance trends, detecting risk patterns, and delivering instant credit decisions. Over 95% of deals can be processed in under a minute. By automating manual checks and underwriting logic, Einstein aiDEAL cuts operational costs and accelerates approvals.

Banks and lenders can also leverage Pulse’s Loan Origination System and Loan Management System, which are designed to assist them in automating and expediting the loan application and approval process, as well as managing and monitoring loan repayments.

Book a demo now for more details. 

Conclusion

Embedded lending, paired with automated underwriting, redefines how, when, and where credit decisions are made. It moves lending from a reactive to a proactive approach, from static forms to live data flows. 

Platforms like Pulse help lenders step into this future, one where decisions are faster, smarter, and deeply integrated into the borrower’s world. Lenders who adapt will not only reduce risk and operational drag but also unlock greater scale, relevance, and competitive advantage.