Finance Glossary

Step-by-step mathematical instructions that tell computers how to solve a problem or make a decision. They’re the “recipes” behind AI models and automation, guiding how data is processed and interpreted.  

The process of linking two systems through APIs so they can share data automatically. Seamless API integration eliminates manual work and ensures that information stays up to date in real time.

Non-traditional financial information, such as open banking records, open accounting data, online sales, utility bills, or spending habits, used to evaluate creditworthiness. It enables lenders to make fairer and more informed decisions, especially for individuals or businesses with limited credit history.

The underlying systems and frameworks that enable APIs to connect and communicate across platforms. It supports seamless API integration, allowing data and services to flow smoothly between different applications and systems.

A software bridge that allows systems to communicate and share data securely. Financial API integration enables different financial systems and applications to connect seamlessly, improving efficiency and data accuracy.

A record showing how and why a decision was made, key for compliance and transparency.  

Money a business owes to its suppliers.  

Money owed to a business by its customers. 

Using artificial intelligence to automate and improve the accuracy of lending decisions.

Analysis of whether a borrower can repay a loan, based on income, expenses, and cash flow.  

Technology (like Einstein aiDeal) that uses AI to make fast, consistent credit decisions without human intervention.

Pulse’s comprehensive cash flow forecasting tool, which leverages historical data to create quick, accurate forecasts for up to 12 months, using AI, machine learning and advanced predictive analytics. 

Technology and processes used to analyse business information for strategic insights.  

A consolidated view of financial metrics and performance indicators.  

The algorithmic core that processes data to produce instant lending decisions.  

Pulse’s Business Insights platform is designed to empower data-driven decisions and transform your financial data into actionable insights. It includes various features to help you visualise your financial data, track KPIs and monitor your firm’s financial health. 

The use of technology to automatically assess and manage the risk of lending to borrowers. It analyses financial data, payment history, and other relevant information to determine the likelihood of default, helping lenders make faster, more accurate, and consistent credit decisions.

Using technology to streamline and manage compliance-related tasks, with regulatory reporting automation helping organisations adhere to regulatory requirements efficiently and effectively.

The process of ensuring customers actively agree to share their data for open banking or credit assessments, giving them control over how their financial information is accessed and used.

Estimating future inflows and outflows of cash to plan business liquidity.  

Ensuring a borrower understands how a loan decision is made and what data is used to arrive at the decision.  

Refers to the systematic evaluation of an applicant’s financial health and ability to repay borrowed funds.  

The fully online process of applying for and receiving a loan, powered by a digital lending platform that streamlines applications, approvals, and disbursals efficiently and securely.

Protecting customer data from unauthorised access or misuse, while ensuring secure data integration across systems for safe and reliable information sharing.

Combining data from different sources (OA, OB, CRMs) into a unified view for better insights. 

The responsible and fair use of customer data in financial decision-making.  

Pulse’s accounts receivable automation solution helps you take full control of the accounts receivable process, track debtors, streamline payments, and reduce payment delays. 

Seamless integration of financial products within non-financial platforms. 

A set of processes and methods that enable human users to comprehend and trust the results and outputs created by machine learning algorithms.  

Integrating lending into non-financial platforms like accounting tools or e-commerce sites is called embedded lending.

Pulse’s automated underwriting solution, powered by AI, and machine learning, which leverages alternative data sources to auto-decision 95% of deals in under 45 seconds, with customisable criteria. 

The network of tech-driven financial services providers.

The FCA Consumer Duty is a regulatory framework aimed at ensuring financial firms prioritise consumer needs and deliver good outcomes, enhancing protection and support for retail customers.  

Actionable intelligence derived from financial data to aid decision-making.  

Regulation that governs how personal data is collected, used, and protected in the UK/EU.  

Metrics used to measure financial or operational success.  

A cloud-based model that lets businesses offer loans/lending products without building the needed infrastructure. It enables non-financial entities to provide lending products as a service through a single digital lending platform, making it easier to launch and scale lending capabilities.

The availability of cash or assets that can be quickly converted to cash.  

A machine learning model is a mathematical or computational system that learns patterns from data and uses those patterns to make predictions, decisions, or generate new information, without being explicitly programmed for each task.  

 Accessing consent-based accounting data directly from a business’s financial software for analysis.  

A framework that allows banks and third-party providers to securely access and share financial data via APIs.  

Technology that works right away when connected, with minimal setup or coding. It enables seamless integration with existing tools, making it easy for businesses to add new features or capabilities quickly.

Offering credit through third-party digital platforms.

Collaborations between banks, lenders, fintechs, and SaaS platforms to deliver embedded services, enabling embedded finance solutions that integrate financial products seamlessly into non-financial platforms.

Using AI to forecast future financial performance or risks.  

Pulse’s Loan Management System (LMS), which helps automate, streamline and refine loan management post-disbursement. It helps track repayments, delays and delinquency.  

Pulse’s Loan Origination System (LOS) enables digital KYC and AML, digitising the loan application process and reducing the application time to under 3 minutes. 

Pulse’s Unified Lending Interface (ULI) is an interoperable layer that offers various solutions to automate, streamline, and expedite the entire lending lifecycle. It includes Pulse’s Loan Origination System (LOS), Einstein aiDeal, and Pulse’s Loan Management System (LMS). 

The automated process of analysing data instantly as it’s generated to determine the best next action or response within milliseconds. A decision engine powers this process, enabling businesses to make accurate and timely decisions automatically.

Lending practices that are ethical and ensure customers can afford their loans and understand the terms.

Technology that helps financial institutions comply with regulatory requirements.   

Analysis of customer payment patterns to predict cash flow stability.  

Data that is continuously updated (in real-time), enabling instant, informed decisions.  

A numerical evaluation of a borrower’s likelihood of repaying a loan.  

A safe testing space within an open banking platform where new apps, products, or APIs can be tried out without affecting real customers or data. It acts like a digital playground for innovation, enabling developers to experiment and refine solutions safely.

Cloud-based software solutions that are delivered over the internet, allowing businesses to access and use applications without managing the underlying infrastructure. A SaaS lending platform enables financial services to be offered efficiently, securely, and at scale.

A strategic method used by organisations to envision and prepare for various potential futures by exploring different “what if” scenarios.  

The process lenders use to assess a borrower’s creditworthiness before approving a loan.  

The difference between current assets and liabilities that shows short-term financial health.