Build vs. Embed: Strategic Choices for Philippine Banks in the Superapp Era

Introduction: The Superapp Imperative in the Philippines

The Philippines is at the forefront of a digital revolution, with superapps rapidly transforming how consumers manage their financial lives. Superapps—multi-functional platforms that integrate payments, banking, e-commerce, mobility, and more—are reshaping customer expectations and business models. For banks and financial institutions, the rise of superapps presents a pivotal strategic question: should they build their own superapp or embed their services within existing platforms?

This decision is not merely about technology—it is about defining the bank’s future role in the digital economy, maximizing customer engagement, and unlocking new revenue streams. The right choice will depend on a nuanced understanding of market dynamics, technology readiness, regulatory context, and the evolving partnership landscape.

The Philippine Context: Opportunity and Disruption

The Philippines’ digital economy is growing at a CAGR of 20%, with a projected value of USD 35 billion by 2025. Mobile adoption is high, with over 69% internet penetration and Filipinos spending more than five hours daily on their phones. Yet, 63% of the population was unbanked as recently as 2022, highlighting both the challenge and the opportunity for financial inclusion.

Superapps such as GCash, maya, toktok, and DiskarTech have become household names, offering seamless, integrated experiences that span payments, lending, investments, and lifestyle services. Leading banks like BPI, Union Bank, and RCBC are responding with their own digital platforms, while conglomerates like PLDT and Globe are leveraging their scale to disrupt digital payments and financial services.

Build vs. Embed: The Strategic Decision Framework

Banks in the Philippines face two primary paths:

1. Build: Develop a Proprietary Superapp

Pros:

Full ownership of the customer relationship and data
Greater control over user experience, branding, and cross-selling
Ability to innovate and differentiate through personalized, lifestyle-oriented services
Enhanced ability to navigate regulatory requirements and retain customer trust

Cons:

High investment and execution risk
Need to compete with established superapps and tech giants for user engagement
Complexity in integrating non-financial services and managing a diverse partner ecosystem
Longer time to market

When to Consider Building:

The bank has a strong digital-first culture and proven capability in agile delivery
There is a clear, differentiated value proposition and a sizable, loyal customer base
The bank can invest in modular, API-driven architecture and advanced data analytics
There is appetite to orchestrate a broad ecosystem of partners beyond traditional banking

2. Embed: Integrate Services into Existing Superapps

Pros:

Rapid access to large, engaged user bases
Lower customer acquisition costs and faster go-to-market
Opportunity to serve new segments, including the underbanked
Ability to focus on core banking capabilities while leveraging the superapp’s ecosystem

Cons:

Loss of direct customer relationship and brand visibility
Potential commoditization of banking services
Dependence on the superapp’s platform, data policies, and user experience
Need for robust, scalable API and compliance capabilities

When to Consider Embedding:

The bank seeks to scale quickly and efficiently, especially in new or underserved segments
There is limited appetite or capability to build and maintain a full superapp
The bank is prepared to operate as a Banking-as-a-Service (BaaS) or Payments-as-a-Service (PaaS) provider
The focus is on operational excellence, compliance, and risk management

Regional Benchmarks and Partnership Models

Across Southeast Asia, both models are thriving. In Thailand, conglomerates and digital natives have launched their own superapps, while many banks and SMEs integrate into these platforms to reach new audiences. Strategic joint ventures—such as those between banks and technology providers—have enabled rapid scaling and innovation, combining banking and non-banking services on a single platform.

Successful superapps are built on cloud-native, API-first architectures, enabling rapid integration of partners and services. Agile, cross-functional teams and a culture of continuous innovation are essential to keep pace with evolving customer needs and regulatory requirements.

Technology and Regulatory Considerations

Regardless of the chosen path, banks must address several foundational challenges:

Modular, API-Driven Architecture: Enables rapid integration, efficient customization, and scalability across partners and services.
Data at the Core: Real-time data lakes and analytics are essential for personalization, risk management, and regulatory compliance.
Agile Delivery Models: Cross-functional teams must be empowered to iterate quickly in response to partner and customer feedback.
Partner Ecosystem Management: Success depends on building and nurturing relationships with both fintechs and non-financial partners, treating them as co-creators rather than vendors.
Regulatory and Security Controls: Automated compliance, policy-based enforcement, and robust security are non-negotiable as integrations and data flows increase.

Evaluating Readiness: Practical Guidance for Philippine Banks

To make an informed decision, banks should assess:

Strategic Ambition: Is the goal to maximize reach, deepen engagement, or drive operational efficiency?
Core Capabilities: Does the bank have the technology, data, and operating model to support embedded, enabling, or platform-led strategies?
Partner Landscape: Which partners (tech, fintech, non-financial) are best aligned to co-create value?
Regulatory Environment: What are the compliance implications of each model in the Philippine context?
Customer Experience Vision: How will the bank differentiate on experience, trust, and personalization?

Aligning with Business Objectives and Customer Needs

The chosen path must align with the bank’s broader business objectives:

Growth: Building a superapp may be best for banks seeking to own the customer relationship and drive cross-selling, while embedding may suit those prioritizing rapid expansion and access to new segments.
Efficiency: Embedding can reduce go-to-market time and operational complexity, while building enables deeper integration and data-driven insights.
Customer Centricity: Both models require a relentless focus on seamless, contextual journeys and hyper-personalization, leveraging data and AI to anticipate needs and deliver value.

Conclusion: The Time to Act Is Now

The intersection of embedded finance and superapps is reshaping the future of banking in the Philippines. Banks that act decisively—investing in modular technology, agile operating models, and partner ecosystems—will be best positioned to capture new value pools, deepen customer relationships, and lead in the next wave of digital disruption.

Publicis Sapient partners with banks and financial institutions to define strategy, design and build scalable platforms, and orchestrate ecosystems that unlock the full potential of embedded finance and superapps. The future belongs to those who move boldly and build for scale—now is the time to choose your path.