Could Embedded Finance Eventually Make Standalone Banking Apps Obsolete?

Embedded finance is rapidly changing the way consumers and businesses alike interact with financial services. As traditional banking processes are replaced by more integrated financial solutions, companies across industries are embedding payment processing, lending, insurance, and investment services directly into their platforms. 

As embedded finance solutions adoption grows rapidly, more and more financial solutions are integrated into everyday apps and services. But what does this mean for standalone financial apps, particularly banking apps?

To find out how the evolution of embedded finance could impact banking apps, we sought out the view of industry experts to get a potential glimpse into the future.

Banking apps’ crucial role

For Raman Korneu, CEO and co-founder of digital bank myTU, banking apps will continue to play a crucial role that can’t be taken over by embedded financial solutions.

“Embedded finance is clearly transforming the way people interact with financial services that are becoming seamless, convenient, and integrated into everyday platforms. But I wouldn’t say it’s about to replace standalone banking apps just yet.

“Banking apps still play a crucial role, especially when it comes to security and control. They give users a direct line to their accounts, with features like two-factor authentication, biometric login, and robust fraud detection tools. Banks invest heavily in these protections, and for good reason: people trust them to keep their money and data safe.

“By comparison, embedded finance often operates through third-party platforms. While that can be convenient, these platforms might not have the same level of security infrastructure. For high-stakes activities like large transfers or managing investments, people still prefer the assurance of a dedicated banking environment. So, while we’re definitely heading toward a more integrated financial future, I think standalone apps will stick around for a while longer. They’re just too important for the kinds of things you don’t want to leave to chance.”

Not obsolete, but less central

James Simcox, chief product officer and managing director international at Equals Money, the B2B payment provider, believes that embedded finance won’t make banking apps completely obsolete but could potentially make them less central.

“The real power of embedded finance is that it puts financial tools exactly where customers need them, whether that’s inside a booking flow, a shopping cart, or a property transaction.

“Customers don’t necessarily want another app, what they want is seamless experiences. If a trusted brand they’re already engaging with can offer them payment or FX services in the same environment, and do so securely, they’re more likely to use it than switch to a separate platform. It’s not about replacing banks but rethinking how and where financial services are delivered.”

George Toumbev, chief commercial officer at banking-as-a-service provider NatWest Boxed, also suggests a similar trend may occur.

“Standalone banking apps allow users to oversee all their finances, receive and make payments to and from businesses, employers, friends and family in one place, under a bank name they know and trust. It’s unlikely that embedded finance will ever make them entirely obsolete, rather it will enable consumers to reduce the touchpoints of their purchases and transactions, by centralising many of their payment journeys.

“As white-labelled embedded finance products become more mainstream and brands look to retain the customer payment journey within their own ecosystem, it will reduce the need for consumers to be redirected to a third-party website, or leave a website or app, to use a banking app to make payments.”

A hybrid future

“Embedded finance is unlikely to completely replace standalone banking apps,” adds Ignacia Gironella Merino, head of sales Europe at Paymentology. “Although customer expectations are shifting towards digital-first interfaces, consumers and businesses both benefit from a dedicated hub for their financial lives. The digital platforms they use may come and go, but customers do not typically want to frequently replace their main bank account.

“Therefore, the future of finance is likely a hybrid approach: consumers and businesses will maintain a long-term relationship with one or more banks, but will also increasingly interact with a range of other financial services providers integrated with the digital platforms they use. For example, a consumer may have a bank account with a traditional institution, but use a mobile wallet to make payments to SMEs or split payments between friends. This flexibility is a key opportunity for institutions to increase their market share, retaining their current customer base while tapping a new customer acquisition method through partnerships with digital platforms.”

Shifting role for standalone apps

“Standalone apps won’t disappear overnight, but their role is shifting,” says Teo Blidarus, co-founder and CEO at FintechOS. “As embedded finance becomes more prevalent, everyday financial tasks are shifting into the background of other digital experiences. Paying back a friend, purchasing travel insurance and applying for credit all no longer require logging into a bank app. Instead, they’re increasingly embedded into retail or lifestyle platforms.

“This doesn’t mean banking apps will disappear. They’ll continue to serve as financial control hubs, providing customers with a consolidated view of accounts, tools for money management and access to more complex services like investment planning or dispute resolution.

“But the idea that customers must initiate every financial interaction through a dedicated app is fading. In the future, financial services will be context-aware and delivered through the ecosystems people use every day. The banks that survive will be those that embed themselves invisibly into this flow, offering value without friction.”

Changing how financial services are consumed

Nima Montazeri, chief product officer at Liberis, a technology company connecting finance with small businesses, says:  “The financial services landscape is undergoing a transformation, and with that, customer engagement patterns are evolving. Technological developments have created a customer ecosystem where a seamless experience is now an expectation. Today’s customers increasingly expect financial services to be integrated into their everyday digital experiences, including the applications they use on their phones.

“Financial services need to be available when and where customers need them. This shift toward embedding financial capabilities within platforms where customers already spend their time represents a significant change in how financial services are delivered and consumed.

“Combined with the development of cross-industry partnerships, we are likely to see a future where many financial offerings are distributed across various touchpoints, invisibly integrated into the broader digital experience, rather than concentrated in standalone applications. For example, lending solutions embedded into checkout processes remove the need for customers to open their banking app.

“While standalone banking apps will likely maintain relevance for certain complex financial needs, the trend toward embedded financial services will certainly change their purpose.”

Reshaping standalone banking apps

“Rather than making them obsolete, embedded finance is likely to reshape the role of standalone banking apps,” concludes Scott Frisby, head of strategy for Europe at Elavon. “Financial services are becoming so seamlessly integrated into everyday touchpoints – retail, travel, even commuting.

“Smart wallets powered by AI are already making decisions on behalf of users, while embedded features enable actions like biometric payments and automatic cross-border transactions without user intervention. Cities such as Venice are embracing this by incorporating embedded payments into tourism experiences and transport infrastructure, like biometric-enabled gondola bookings or congestion charges that require no manual input.

“There is a balance to strike. Consumers increasingly value transparency and control—especially around privacy and data collection. As a result, standalone banking apps are likely to evolve into all-in-one financial management hubs. Rather than serving solely as transactional tools, these apps can transform into dynamic dashboards—offering insights and tools that help both merchants and customers navigate and connect with embedded finance experiences across platforms.”

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