Bringing a new fintech solution to market requires a lot of effort, as well as financial and time investments. For this reason, many companies choose a simpler way – using white-label solutions. If you are looking for ways to enter the market with your own fintech solution or looking for a reliable company that provides mobile banking development services, this article is for you. You will learn about the features of using white-label banking.
What Is White-Label Digital Banking?
White label banking offers ready-to-use banking and payment products, including APIs for connecting to various service providers. Such solutions also allow the development of new products without creating them from scratch and without connecting new integrations. At the same time, many companies choose comprehensive banking services in the open banking format.
White-Label Digital Banking Products
A white-label digital banking solution can provide the following functionality:
- Customer onboarding, AML/KYC.
To create an account and open a current account, new customers must register, go through a verification process, and provide relevant information. KYC/AML functionality will help ensure that the onboarding steps are secure, fast, and hassle-free.
- Payments and FX.
Setting up a payment infrastructure is one of the most complex, but with ready-made white-label services for payments and FX, you can connect to various providers and provide your customers with different payment methods and available currencies.
- License as a service.
Fintech companies can operate under third-party licenses of e-money institutions, payment institutions, or banks.
- Card issuance.
Using an integration with a card issuance solution provider, you can issue debit cards to your customers under your brand.
- IBAN sponsorship.
There are dozens of regulated companies that offer the ability to generate IBANs without the need for an individual e-money or payment license and connect to SEPA through them. Such companies allow you to automatically issue IBANs and manage them through their API. These IBANs are created in the name of the partner – the client receives IBANs with the details of the partner (e.g. bank, payment system).
White-Label End-User Applications And White-Label Digital Banking
White-label digital banking is related to back-office operations, while white-label applications, such as online banking and mobile applications, provide end-user operations. They can also complement the digital banking solution well and work as a whole.
Fintech companies can create end-user applications under their brand in no time.
Advantages of White-Label Digital Banking
Many fintech companies prefer to cooperate with providers of white-label digital banking platforms. Creating products with such platforms and using APIs provides many advantages:
- Saving resources.
Of course, you can develop your solution from scratch. However, you will need an experienced IT team for development, you will also need to test the solution and fix errors. But in addition to human resources, you will have to invest a lot of money. Instead, you can buy a ready-made platform to reduce your costs and time.
- Reliability.
Ready-made white-label solutions are developed by experts with extensive industry experience using the latest technologies, thoroughly tested, and also comply with regulatory requirements.
- Fast time to market.
Why not skip the time-consuming stage of developing and testing applications? With white-label solutions, you can enter the market faster and add new features without spending a lot of time creating them from scratch. All you have to do is set up the solutions and start offering them to your customers.
- Product testing.
You can test the product in advance and only then start using it. If you create applications yourself, then most likely there will be many unexpected moments. The fintech industry changes quickly, and the product development process can last 1-2 years. For this reason, when the solution is launched, your new version may be outdated and not meet customer expectations.
- Know your budget from the start.
Providers of ready-made white-label products offer solution packages depending on the selected module, the number of integrations, or the budget. This way, you can accurately calculate your expenses from the start. In comparison, developing your own solution can exceed the initial budget, since it is impossible to accurately calculate all expenses before starting development. Very often, projects are delayed, which leads to increased costs.
Who Benefits From White-Label Software Solutions?
Using white label solutions is primarily beneficial to:
- Projects that want to quickly enter the market.
- Companies that need to implement a replacement for an already used solution. This is the case when the solution used by the company does not meet the needs of the business. This can happen due to the development of the project or poor quality development. It is worth noting that in the fintech industry, the transition to a new solution can be quite expensive and difficult. The company at least needs to attract a reliable provider.
- Companies that want to attract new clients. The financial technology industry is constantly evolving. As new solutions are released, categories of clients previously inaccessible to businesses may become quite accessible. In such situations, the use of white label solutions helps businesses offer a new service in the shortest possible time.
How White-Label Solutions Help The Economy
White label solutions not only support businesses, but also have a beneficial effect on the development of the economy. Thanks to ready-made solutions, companies qualitatively improve customer experience by changing their services. Thus, the market is filled with new solutions, which affects the development of cross-industry interaction and competition among startups offering niche products.
Of course, if you want your own solution, you can contact a reliable development company that will deliver mobile banking solutions, neobanks and other fintech solutions from scratch.
Final Thoughts
Using ready-made banking products under your own brand is a great solution for companies that want to expand their services without significant investment. In addition, this approach speeds up the company’s entry into the market. If you still want to develop a solution from scratch and are looking for a reliable company that provides services for developing solutions for mobile banking or neobank, we recommend paying attention to Agilie.
