Embedded Finance and the Rise of Super Apps: Strategic Choices for Banks

Introduction: The Convergence of Embedded Finance and Super Apps

The financial services landscape is undergoing a profound transformation, driven by two converging trends: the rapid rise of embedded finance and the emergence of super apps. Embedded finance—the seamless integration of financial services into non-financial digital platforms—has become a powerful force, enabling banks to reach customers where they already are. Meanwhile, super apps, which originated in Asia and are now gaining traction globally, offer consumers a one-stop digital destination for a wide array of services, from payments and banking to shopping, travel, and beyond.

For banks, this convergence presents both a challenge and an opportunity. Should they embed their services within third-party super apps, become infrastructure providers powering these ecosystems, or develop their own multi-service platforms? The strategic choices made today will define their relevance and growth in the next era of digital banking.

Market Trends: Why Super Apps and Embedded Finance Matter Now

The momentum behind embedded finance is undeniable. Global revenues are projected to reach $160 billion by 2025, with annual growth rates exceeding 40%. This growth is fueled by:

• Digital transformation across industries, lowering barriers to integration.
• Enhanced customer experience, as users demand seamless, contextual financial services.
• Access to new customer segments, including the underbanked, via non-financial platforms.
• Monetization opportunities for both banks and their partners.
• Regulatory advancements such as open banking, enabling secure data sharing and new business models.

Simultaneously, super apps are redefining digital engagement. Platforms like WeChat and Alipay in Asia have demonstrated the power of integrating messaging, payments, e-commerce, and financial services into a single, sticky ecosystem. In Western markets, the super app model is evolving, with banks and fintechs exploring how to replicate this success while navigating different regulatory and competitive dynamics.

Strategic Options for Banks: Embed, Enable, or Build?

Banks face three primary strategic paths in the super app era:

1. Embed: Integrate Banking Services into Third-Party Super Apps

• Benefits:
  • Rapid access to large, engaged user bases.
  • Lower customer acquisition costs.
  • Opportunity to serve new segments and geographies.
• Risks:
  • Loss of direct customer relationship and brand visibility.
  • Potential commoditization of banking services.
  • Dependence on the super app’s platform and data policies.
• Implications:
  • Requires robust, API-driven capabilities and a partner-centric operating model.
  • Banks must excel at efficient customization and compliance across multiple partners.

2. Enable: Become an Infrastructure Provider (BaaS/PaaS)

• Benefits:
  • Monetize core banking capabilities by powering multiple platforms.
  • Focus on operational excellence, compliance, and risk management.
  • Lower risk of direct competition with super app brands.
• Risks:
  • Margins may be lower than direct-to-consumer models.
  • Risk of being relegated to a utility role, with limited influence over customer experience.
• Implications:
  • Success depends on scalable, modular architecture and strong partner management.
  • Banks must invest in automation, real-time data, and regulatory controls.

3. Build: Develop a Bank-Led Super App or Multi-Service Platform

• Benefits:
  • Retain ownership of the customer relationship and data.
  • Create new revenue streams through cross-selling and ecosystem expansion.
  • Differentiate through personalized, lifestyle-oriented experiences.
• Risks:
  • High investment and execution risk.
  • Need to compete with tech giants and fintechs for user engagement.
  • Complexity of integrating non-financial services and managing a diverse partner ecosystem.
• Implications:
  • Requires a digital-first culture, agile delivery, and a willingness to partner beyond traditional banking.
  • Banks must leverage advanced analytics, AI, and open data to personalize and orchestrate experiences.

Technology and Operating Model 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, Cross-Functional Teams: Delivery models must break down silos and empower teams 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: As the number of integrations and data flows increases, automated compliance, policy-based enforcement, and robust security become non-negotiable.

Customer Experience and Data: The Differentiators

In the super app paradigm, customer experience is the ultimate battleground. Banks must:

• Deliver seamless, contextual journeys that blend financial and non-financial services.
• Leverage data and AI to anticipate needs, personalize offers, and drive engagement.
• Ensure trust and transparency in how customer data is used and protected.

Banks that excel in these areas will not only retain relevance but also unlock new sources of growth and loyalty.

Case Studies: Lessons from the Leaders

• SME Digital Bank (BaaS-First, Built in 9 Months): Orchestrated 22 fintech partners, targeted 350,000 SMEs, and delivered a cloud-native, API-driven platform with fully automated operations and real-time analytics. Demonstrated the power of modular architecture and partner-centric delivery.
• Strategic Joint Venture in Southeast Asia: Combined banking and non-banking services (e.g., food delivery, health, travel) on a single platform, scaling to over 10 million customers. Showcased the potential of platform-as-a-service models to compete with digital-first entrants.

Decision Framework: Choosing the Right Super App Strategy

Banks should evaluate their super app strategy through the following lens:

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

Conclusion: The Time to Act Is Now

The intersection of embedded finance and super apps is reshaping the future of banking. 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 worldwide to define strategy, design and build scalable platforms, and orchestrate ecosystems that unlock the full potential of embedded finance and super apps. The future belongs to those who move boldly and build for scale—now is the time to choose your path.

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Ready to define your super app strategy? Connect with Publicis Sapient to accelerate your digital transformation journey.

Relevant Links

• Scaling Embedded Finance: Strategies and Capabilities for Banks in the Digital Economy
• Scaling Embedded Finance: Strategies and Capabilities for Banks in the Digital Economy
• Embedded Finance à l’Échelle : Un Guide pour les Banques Européennes (Europe)
• Scaling Embedded Finance in Commercial Banking: Overcoming the Multi-Partner Challenge
• Finanzas Embebidas a Escala: Cómo los Bancos de América Latina Pueden Construir y Escalar Ecosistemas de Socios (LATAM)
• Finanzas Embebidas a Escala: Cómo los Bancos en América Latina Pueden Construir y Escalar Ecosistemas de Socios (LATAM)
• Core Modernization as the Foundation for Embedded Finance at Scale
• La finance embarquée à l’échelle : une opportunité stratégique pour les banques européennes (Europe)
• Finanzas Embebidas a Escala: Cómo los Bancos de América Latina Pueden Construir y Escalar Ecosistemas de Socios (LATAM)