In the era of media and technology, everything around us is digitized. After the COVID-19 breakout traditional banking actions were replaced or complemented with fintech services. According to the latest Harris polls and Plaid's survey, it has become paramount for 88% of American consumers' financial lives.
We no longer need to do most things in person because AI-powered solutions make our lives significantly more unchallenging. Especially the financial part, which can be more accessible, straightforward, and personalized for you. One solution to your bank struggles and drawbacks, in particular, is a white label digital bank which is a course of action that provides you with having the finances in hand.
Building core banking systems on your own might be the toughest and have the most protracted direction of getting things under control. An approach utilizing the benefits of white-label banking solutions is much more affordable, swifter, and, the most vital, easier. In this article, we'll explain what white label banking is, what prospects a white label digital bank has for businesses and how to find the best white label solution tailored to your specific requirements.
What is white label banking?
Essentially, a white label is a business model in which one company makes items or products for other companies under the brand name of the latter. In this regard, white label banking means operation with financial and bank services that offer banking products to companies of all sizes and industries.
It is an alternative term for private-label financial services or banking-as-a-service (BaaS), in which banks open up their application program (API) to let third parties assemble their financial products with the provided infrastructure. Traditionally, white label banking platforms embody these services:
- Debit and credit cards
- Mortgages and personal loans
- Savings and checking accounts
- Online payment transfer systems
- Card programs
- Bank statements
- IBAN integration
What makes white-label fintech projects successful?
Who is capable of saying 'No' to an effective and functional way to cooperate finances, a handy method of organizing and choosing personalized techniques of bank system regulation.
The white label concept can directly take things one step quicker and further, with advisors from different banks co-working flexibly in whichever office or department is most suitable for the client.
No wonder why white-label digital bank providers are so much worth considering. Everything is spelled out in their construction. They are cost-effective, secure, and highly customized.
White label banking accelerates the builder's go-to-market schemes and strategies by detecting administrative, legal, and technical stumbling blocks. Its solutions lay strong points for obscure startups and newcomers companies.
Furthermore, It's empowering to set foot in the market rapidly, and it is not indispensable to have a professional knowledge of the way financial products are created and regulated.
Aside from the benefits below, using a white label does not require a significant number of operational costs or a team of developers.
If you are up for progress which is inevitably making its way, and looking out for a system that can develop and regulate your finances in the best way, an exceptionally innovative white label platform such as Crassula will be a great place to start.
Welfares of using white-label banking:
- White-label solutions permit undertaking business enlargement, branding, and service improvement.
- A company that engages in a partnership with a white label company acquires a new stream of revenue by offering additional services to customers.
- It allows a company to diversify its products and offerings. Thus, it can better position itself in a saturated market with different retailers that have identical products.
- There is no need to own a banking infrastructure or waste years on acquiring a license. Additionally, you won't be overwhelmed with countless audits, testing, and safety measures.
All in all, the main points of a white label digital bank's success are convenience, decreased costs, personalization of products, and better market arrangement.
It's a truthfully well-known knowledge that the future belongs to those who adopt digital means. Launching a white label bank has the prospect of enhancing not only your business model but also contributing to the development of the economy combined with the advent of new banking possibilities for all parties involved in it. Primarily improving clients' servicing, facilitating the emergence of new solutions, and business growth.
By partnering with a white label digital banking platform, startups get access to a reliable structure and effortlessly advance their products. Instead of building a corporation or system from scratch, companies can take advantage of powerful API, develop their sales on a solid foundation and throw themselves into the market with a secure and fully featured banking product bearing their brand's name.
The Global Financial Stability Report suggests that the focus on traditional banks isn't as important as it was before and the attention is shifted to the FinTech services. And this tendency is set to continue.
Neobanks, traditional banks, and startups are actively leveraging the marvel of technology that helps them create services such as digital wallets, KYC, foreign exchange, and other extensive offers.
Some try to digitize their product and service offerings on their own. But it is not as easy as it sounds. Launching such services is a challenging pathway that requires a lengthy licensing process and a proper infrastructure.
Fortunately, there is a gateway solution on your side. With the white-label banking model, you can get the authorization to build banking services and ensure your customers can enjoy a seamless and straightforward financial experience.