In addition to the outboard wing traveling at a greater speed (thus generating more lift), the sideways component of the relative airflow in a sideslip contributes to create overbanking tendency.
The sideways component flows around the fuselage from inboard wing's root, decreasing the angle of attack of the inboard wing, flows under the fuselage and then flows in an upward direction at the root of the outboard wing, increasing its angle of attack.
Quite a bit of a mouthful to write without an illustration available.
On a high wing aircraft, the sideways component contributes to lateral stability.
These images are taken from OAA PPL collection ebook.