Neobank

The relationship between neobanks and Embedded Finance is symbiotic, with neobanks often serving as both a catalyst for and a beneficiary of the trend. Embedded finance refers to the seamless integration of financial services into non-financial platforms or customer journeys, such as a car manufacturer offering financing at the point of sale or an e-commerce site providing instant credit. Neobanks, built on modern, API-driven technology stacks, are perfectly positioned to act as the infrastructure providers for this movement. They leverage their agility and lack of legacy systems to offer Banking-as-a-Service (BaaS) platforms, which allow non-financial companies to "embed" banking products directly into their own applications. For example, a neobank like Green Dot or a BaaS provider like Synapse (which often powers neobanks) can offer the regulatory compliance, ledger management, and payment processing capabilities that a non-financial company needs to launch its own branded checking account or lending product.