The current environment is more than advantageous for digital banks because it is seeing an increase in financial inclusion and digital payments globally. For businesses wishing to develop their own financial services and goods—a process that can be eased by a white-label digital banking platform—the market is promising.
Although banking and payments have evolved significantly in recent years, a study by the World Bank’s Global Findex Database showed that there is still opportunity for new businesses because 150 million individuals in Latin America still only use cash for payments. Therefore, there is a wonderful opportunity to investigate banking in the area.
Additionally, significant changes have occurred recently as new players—even those who weren’t initially from the financial world—joined the business. Along with fintechs, businesses from other sectors, including retailers, carriers, and manufacturers, have captivated their consumers by providing financial solutions.
The truth is that building your own digital bank can be advantageous and strategic for initiatives of all shapes and sizes. A white label digital banking platform is the best method to accomplish this in an agile manner.
We’ll demonstrate how it can be a simple and, most significantly, profitable decision for your company in this post.
Understanding The Concept Of White Label
White label, as the name suggests, refers to a label that is empty. It is a realistic choice for businesses wishing to operate on new market fronts without investing the time, money, or effort necessary to develop their own solution.
White-label platforms allow banks and fintechs to use APIs to sell their financial solutions in the financial sector. Financial universe available “as a service” thanks to white label solutions.
What Is A White Label Digital Bank?
A white-label strategy application example is a white-label digital bank. As a result, it is a bank XNUMX% customized with your brand and depends on a tech partner to build the full infrastructure for financial services and products using APIs.
The Concept Of White Label Banking Services
For many startup newcomers in finance, purchasing pre-made software for rebranding has shown out to be a sound business plan. As we go into the digital age, where business is conducted online and without paper, even conventional institutions are taking this path. Following is a list of banking services that white label vendors frequently give for when developing financial apps:
Client Onboarding
Customers go through an onboarding process when they join up for your services, learning how to set up an account and make the most of the app’s capabilities.
Checking And Savings Accounts
You can provide services for managing your clients’ checking and savings accounts with the use of white label partnerships.
Issuing Virtual Cards
You may practically issue debit and credit cards to consumers by integrating private label banking.
Made Paying Bills Easier
White label banking can assist you in providing simple and practical bill payment procedures. The user can complete a seamless transaction to send the money owed to the biller.
Personal Loans
This provides a number of features that make it easier than traditional banking would imply for customers to manage their finances and acquire personal loans.
Withdrawals And Deposits
You may create white-label financial software that makes it easier to deposit and withdraw money.
Mortgages
A customized fintech white label software can assist you in providing users with usable digital mortgage software, such as an online mortgage application form or mortgage calculator.
Insurance
You may help consumers get insurance quotes by using a white label banking solution. The application uses the user’s information to provide quotes that can be used to choose an appropriate insurance plan.
Bank Records
Users get access to their bank statements, which provide information on withdrawals, deposit charges, and balances for a given time frame.
Balance Notifications
To prevent overspending, a user might ask for bank balance notification alerts.
Top 5 Benefits Of Using A White-Label Digital Banking Platform
After going over some fundamental terms and definitions related to the subject, it’s time to discuss the advantages a white-label digital banking solution may offer your company.
1. Accelerating Deployment And Improving Procedures
The white-label strategy speeds deployment and provides cheap development costs when it comes to creating a digital bank.
As we’ve seen, using this kind of platform doesn’t require having such a strong internal team or allocating as much money for infrastructure and equipment. Since a portion of the solution development has already been completed, tested, and verified, processes are also improved.
Go-to-market activities are thereby drastically diminished, allowing your company to consolidate more quickly.
2. Cutting Operational Costs And Developing New Income Streams
By depending on their own bank to complete transactions, businesses that are not initially from the financial sector can optimize their financial management, streamlining procedures and cutting expenses. They can also generate new revenue streams by offering financial services to their clients.
Cosmetics companies who engage in direct sales are a fantastic illustration of this phenomenon. Their payment processes can be made more cost-effectively and agilely by providing a digital bank for their sales reps, allowing them to invest in growing their sales numbers through this crucial point of contact with their clients.
3. Increasing The Consumer Base And Portfolio
A business can expand their portfolio more effectively by adopting a white-label digital banking platform because a third party is in charge of creating a number of various products.
We can use the Pix evolution agenda monitoring in Brazil as an example, which mandates that digital banks deploy new capabilities as soon as possible once the Central Bank makes them available. A white label digital bank speeds up development so that users may get the features more quickly.
Another intriguing example concerns the portfolio of financial solutions, which may be quickly expanded. For instance, a retail company that already offers accounts can simply engage their audience by introducing new goods like credit cards or loans.
4. Boosting Customer Loyalty
Your business can also enhance client relationships and boost customer loyalty by expanding the selection of services offered through a white-label digital bank and assisting your consumers in gaining access to the financial world for various needs in their daily lives.
For instance, in many towns and communities, supermarkets and retail companies develop solid relationships with their customers. These are customers who already have faith in and rely on these companies for shopping as well as other services like paying bills, recharging phones, and more.
In those circumstances, providing a second point of contact (like a digital account) strengthens the bond between you and your consumer while also making their lives easier. After all, they already frequent their dependable point of sale once a week, why would they need to go to a bank branch?
5. Understanding Consumer Profile
Utilizing a white-label digital banking platform leaves all data about transactions, client profiles, etc. in the hands of your business, bank, or fintech.
Based on it, you may make your credit offer smarter, add new features, and improve the financial experience with other services.
Final Words
Companies wishing to enter the financial services sector without making the large expenditure necessary to develop their own banking infrastructure might do so with the help of a white-label digital bank.
This solution has a number of advantages, such as lower costs, a shorter time to market, personalized branding, access to knowledge, and scalability. Fintech companies can outsource application development by choosing white-label solutions, which enables them to enter the market quickly, save significant time and resources, and maintain competitiveness in the quickly evolving financial industry.
