Embedded Finance: Will It Overtake Standalone Banking Apps?

As embedded finance continues to revolutionize how individuals and businesses engage with financial services, questions are being raised about the future of traditional banking apps.. With payments, lending, insurance, and investment options increasingly being integrated into non-financial platforms, the need for standalone banking applications could soon be in question. But are they truly on their way out?

To explore this shift, The Fintech Times spoke with industry leaders to understand the evolving role of banking apps in a world rapidly embracing embedded finance.

Still Essential: The Banking App’s Core Role

Raman Korneu, CEO and co-founder of digital bank myTU, believes that despite the rise of embedded finance, banking apps aren’t going anywhere soon. “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,» said Korneu. “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. … 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.”

Less Central, Not Obsolete

Some experts foresee a diminished—though not obsolete—role for banking apps. “The real power of embedded finance is that it puts financial tools exactly where customers need them,” said James Simcox, chief product officer at Equals Money. “Customers don’t necessarily want another app, what they want is seamless experiences.”

Simcox points out that if financial services are integrated within a platform consumers already use and trust, such as a shopping cart or property app, the need to switch to a bank app diminishes.

George Toumbev, chief commercial officer at NatWest Boxed, agrees, noting that while banking apps centralize financial activity under a trusted brand, embedded finance minimizes unnecessary touchpoints. “It’s unlikely that embedded finance will ever make them entirely obsolete,” he said. “Rather, it will enable consumers to reduce the touchpoints of their purchases and transactions.”

A Hybrid Future

For Ignacio Gironella Merino, head of sales Europe at Paymentology, the future lies in a blend of embedded and traditional approaches. “Embedded finance is unlikely to completely replace standalone banking apps,” Merino stated. “Consumers and businesses both benefit from a dedicated hub for their financial lives.”

He envisions a dual-structure future, where customers retain long-term relationships with traditional banks while also embracing financial services embedded in other digital platforms.

According to Teo Blidarus, co-founder and CEO at FintechOS, embedded finance is reshaping expectations. “Standalone apps won’t disappear overnight, but their role is shifting,” said Blidarus. “Paying back a friend, purchasing travel insurance and applying for credit all no longer require logging into a bank app.”

However, these apps will remain valuable as control centers for managing more complex financial needs like investments or dispute resolution.

Customer Experience as a Driving Force

Nima Montazeri, chief product officer at Liberis, sees consumer expectations at the heart of this transformation. “Technological developments have created a customer ecosystem where a seamless experience is now an expectation,” said Montazeri. “Financial services need to be available when and where customers need them.”

He predicts a future where financial services are invisibly integrated across various digital touchpoints, making standalone apps more purpose-specific rather than central hubs for all financial interactions.

Scott Frisby, head of strategy Europe at Elavon, sees embedded finance not as a replacement but a catalyst for innovation in banking apps. “Rather than making them obsolete, embedded finance is likely to reshape the role of standalone banking apps,” said Frisby. “Smart wallets powered by AI are already making decisions on behalf of users.”

He envisions banking apps evolving into intelligent financial dashboards—offering insights, control, and a seamless interface with the broader embedded finance ecosystem.

While embedded finance is undeniably shifting how consumers interact with money, experts agree that standalone banking apps are far from obsolete. Instead, they are set to evolve—adapting to a hybrid environment where they coexist with embedded financial services and continue to serve as secure, centralized platforms for more complex or high-trust transactions.

As the financial services landscape continues to change, one thing remains clear: the way we manage money is becoming more flexible, contextual, and integrated than ever before.