Embedded lending is changing how finance is distributed, consumed and experienced. In the UK, where FCA regulations, Consumer Duty and compliance guardrails govern every financial interaction, brokers are navigating a period of significant change. This change presents challenges and opportunities for brokers who will adapt these business models. 

According to 2023 figures, embedded finance already accounts for 37% of the European market, the UK and EU are seeing the fastest adoption. Globally, this market is expected to grow from $148.38billion in 2025 to $1,732.53 billion by 2034. This marks a fundamental shift in how financial products are accessed, and more importantly, who controls those customer touchpoints. 

How Embedded Lending Is Reshaping Lender-Broker Relationships

Embedded finance is a wide-ranging concept covering payments, insurance, investments, and more. But for lenders and brokers, the most transformative change is coming from embedded lending, the ability to offer loans directly within digital platforms where businesses and consumers already operate. 

This shift is not just about convenience. It’s creating new ways for lenders to diversify revenue and for brokers to strengthen their role in the lending ecosystem. 

The Changing Broker–Lender Relationship

Traditionally, brokers acted as the go-between, gathering client documents and forwarding them to lenders who carried out the heavy lifting of underwriting and approval. The introduction of embedded lending changes this dynamic. 

For brokers, digital-first tools mean fewer manual touchpoints and faster processing. For lenders, this evolution translates to better-quality applications, reduced error rates, and deeper visibility into client data earlier in the process. The result is a stronger, more transparent partnership where both sides work from a shared data set, aligning objectives rather than negotiating across silos. 

Staying Relevant in the Embedded Lending Era

Embrace Digital-First Solutions 

To stay ahead, brokers need digital-first capabilities. Modern API-driven platforms and Lending-as-a-Service (LaaS) solutions are reshaping the landscape, allowing brokers to integrate lending, payments, credit checks, and onboarding tools without the need for heavy in-house development. 

This is where SaaS companies like Pulse provide tangible value. Its Unified Lending Interface (ULI) simplifies every part of the loan journey. Pulse’s Loan Origination System (LOS) accelerates the application process, ensuring higher-quality submissions for lenders and faster approvals for borrowers. It allows brokers to send borrower’s applications to multiple lenders, and automates the loan application process to under 3 minutes.

Once loan amounts are disbursed, Pulse’s Loan Management System (LMS) centralises repayment tracking, collections, and communication. It ensures that loans are repaid in accordance with the terms established between the borrower and the lender. Complementing these tools is Einstein aiDEAL, an AI-powered underwriting solution capable of processing over 95% of deals in under a minute. For brokers, this technology reduces friction, improves efficiency, and strengthens relationships with both clients and lenders. 

Together, these solutions create a more integrated and transparent broker–lender relationship, reducing inefficiencies and unlocking new opportunities for growth. Book a demo to learn more. 

Strategic Integrators Between Platforms and Lenders 

Brokers are increasingly becoming connectors between the digital platforms clients use and the financial institutions that fund them. Their role involves ensuring that embedded lending offerings are not only accessible but contextually relevant, whether embedded within ERP systems, point-of-sale tools, or procurement software. 

This positioning allows brokers to advise both ends: clients on the funding journey and lenders on product distribution. 

Curate the Right Embedded Lending Pathways

Embedded lending is not one-size-fits-all. Each platform, lender, and product type comes with different eligibility requirements, data dependencies, and user experiences. Brokers now play the critical role of curators, selecting and aligning embedded solutions that suit the business’s sector, cash flow behaviour, and compliance obligations. 

Rather than merely introducing lenders, brokers must now architect pathways that work best within each client’s operational environment. 

Influence Product Design Through Data and Insights

The power of embedded lending lies in the data loop. Brokers, through their client-facing role, gather valuable insights into demand patterns, client pain points, and emerging market trends. When shared with lenders, this intelligence shapes product design. 

For brokers, this creates opportunities to recommend relevant, competitive solutions. For lenders, it offers a channel to refine products in line with market realities while ensuring compliance with evolving FCA requirements. The broker-lender relationship becomes consultative, with both parties co-creating lending products that resonate with SMEs. 

The Path Forward

Brokers operating in the embedded lending era have significant opportunities ahead. Success requires strategic thinking about technology adoption and partnership development. The firms that move decisively will establish competitive advantages that compound over time. 

The transition period presents both risks and rewards. Early adopters gain market positioning benefits. Late adopters may find themselves competing from disadvantaged positions. The window for strategic positioning remains open, but will not stay that way indefinitely. Brokers who embrace this change proactively will shape the future of financial distribution.