In 2025, lending will no longer require you to visit a physical location or bank branch. Instead, it meets customers wherever they are. Thanks to embedded lending and APIs, banks can distribute lending products through third-party platforms, apps, and workflows. Thus, technology has brought about a massive change. A shift from lenders being perceived as product providers to being viewed as creators of a seamless ecosystem.   

This is no longer theoretical, with several practical implementations already underway. Banks that embrace embedded lending APIs are already scaling faster, acquiring new revenue channels, and defending their relevance in a financial world that has become both digital and decentralised.   

Let’s understand why this shift is strategic and how banks can lead the change.   

Embedded Lending APIs: More Than a Tech Trend   

APIs (Application Programming Interfaces) enable banks to transform lending capabilities, such as onboarding, application processes, underwriting, pricing, lending decisions, and servicing, into modular building blocks. These blocks can be embedded into software used by businesses, e-commerce platforms, B2B marketplaces, or even gig economy apps.   

It’s about placing the right offer, at the right time, in the right context, without forcing the customer to switch channels or platforms.    

Why Embedded Lending is an Urgent Need  

• Over 60% of SMEs now expect financing options embedded into digital tools they already use (e.g., invoicing, payroll, procurement).   
• B2B lending via APIs is forecast to grow 28% YoY until 2028, outpacing retail segments   

Strategic Advantages for Banks

New Revenue Models   

With embedded lending APIs, banks can monetise and scale lending in several ways:   

• Revenue-sharing with platforms (e.g., accounting or e-commerce tools)
• White-label licensing of lending engines  
• Volume-based pricing for API usage   

Traditional loan products become “Lending-as-a-Service” (LaaS). Banks can embed without needing to own customer acquisition.   

Distribution Without Costly Expansion   

Instead of expanding branch networks or launching new mobile apps, banks can distribute lending through partners with ready-made audiences. Think:   

• Construction software embedding asset finance.
• Retail POS systems offering working capital at checkout.
• Online wholesalers are embedding credit lines at the time of invoice issuance. 

The result? Lower CAC, faster onboarding, and real-time engagement.   

Better Customer Data   

APIs open new sources of consented real-time data, which encompasses:   

• Payment behavior
• Inventory cycles
• Revenue flows
• Payroll activity    

This allows better credit decisions, dynamic pricing, and early fraud detection.   

Pulse is an award-winning SaaS company that offers easy-to-integrate API-first solutions. This includes Pulse’s Unified Lending Interface (ULI), designed to empower banks, lenders, accountants, advisors and the businesses they serve. Apart from access to real-time data and advanced predictive analytics, Pulse ULI serves as a single interoperable interface that streamlines, automates and expedites the entire lending process and journey.   

For example, Pulse’s Loan Origination System (LOS) offers digitised KYC and reduces the application process to under 3 minutes. Traditional application processes are both manual and take several weeks or months.     

Loan origination is not complete without Pulse’s Einstein aiDeal, an automated underwriting solution capable of processing thousands of applications simultaneously while decisioning 95% of deals in less than 60 seconds.   

Once funds are disbursed, Pulse’s Loan Management System (LMS) helps streamline repayments, defaults and delays, with automated reminders and reporting. With solutions like Pulse ULI, banks, lenders, brokers, and introducers can save time and cost while scaling operations, revenue and volumes. All of this can be achieved without any upfront cost.  

With Pulse’s ULI, banks can easily embrace embedded lending and leverage it’s solutions to scale operations, increase volumes and automate existing processes in a quick and easy manner. With API-first architecture and developer-friendly integration, banks can revolutionise their lending journey effortlessly wiith powerful lending solutions under one intuitive interface. To learn more about Pulse ULI and how you can integrate embedded lending into your systems, contact us today. 

Defend Relevance in the Fintech Age   

Banks risk being sidelined. Companies like Pulse are becoming increasingly crucial in embedded finance. Without embedded lending and APIs, traditional banks risk becoming invisible and potentially obsolete.   

Core Capabilities: What a Lending API Must Do   

An effective embedded lending API stack needs to support:   

The key: modularity. APIs must be pluggable into various user journeys with minimal engineering effort.   

Pulse also provides additional solutions such as aiPredict, which encompasses cash flow forecasting and scenario modelling, and DebtorIQ, which automates the accounts receivable process. In addition to robust lending solutions, banks can gain additional insights into the cash flow, liquidity, and financial health of potential borrowers, reducing risk and promoting inclusivity.    

API Monetisation Models for Banks   

Successful banks in 2025 usually adopt one or more of these models:   

Revenue Share: The partner receives a portion of the interest or fee margin.  
Banking-as-a-Service (BaaS): Bank licenses its infrastructure to other brands.  
White-Label Lending: The bank provides capital and underwriting, while the partner owns the UX.  
Embedded Referral – The partner triggers pre-qualified loan offers, and the bank owns the servicing.     

Open Finance and Data Access   

Embedded lending thrives on Open Finance, which is real-time, consent-based access to financial data. Banks must:   

• Comply with data-sharing standards.   
• Maintain secure authentication flows (OAuth2, SCA).   
• Handle revocation, portability, and API throttling correctly.     

How Banks Can Implement Embedded Finance   

Assess Current API Readiness   

• Are your core systems API-accessible?   
• Can your lending logic be modularised?   

Design Embedded Use Cases   

• Identify where your SME or consumer lending products can be contextualised.    

Select Partners   

• Prioritise platforms with high engagement (accounting, retail, SaaS).   

Define Commercial Model   

• Choose monetisation model (revenue share, white-label, etc.)  

Build and Pilot   

• Use SaaS solutions from companies like Pulse to transform processes   

Launch and Iterate   

• Gather API usage metrics. Optimise based on partner feedback and conversion.   

Why Embedded Lending APIs Are a Strategic Necessity    

2025 is the tipping point. With customers expecting instant, contextual finance, and platforms and SaaS companies providing turn-key solutions, banks must act now to stay relevant and ahead of the curve. APIs aren’t just a tech upgrade. They are the gateway to reclaiming growth, scale, and strategic relevance in a sector most affected by technology, AI, and machine learning.