Embedded finance is the integration of financial services into non-financial products and platforms. Embedded banking refers to the growing trend of banks partnering with technology companies to offer financial services within their products and platforms. Challenger banks are digital-only banks that offer innovative products and services, often targeting specific niches or geographies.

Neobanks are challenger banks that are built on embedded finance and embedded banking models. They are digital-only banks that offer innovative products and services, often targeting specific niches or geographies. Neobanks have benefited from the rise of Embedded Finance, as they are able to offer financial services within non-financial products and platforms. This has allowed them to target specific niches and geographies that traditional banks have neglected.

Neobanks will begin to outperform traditional banks because they are built on more innovative models. Embedded finance and embedded banking allow neobanks to reach consumers in new and innovative ways.  They are also able to tailor their products and services to specific niches that traditional banks have neglected. As a result, neobanks are well-positioned to continue their growth and disrupt the traditional banking industry.