The concept of digital banking has been around for quite some time now and has reshaped the way we do banking for the better.
Nowadays, one can easily create and manage a savings account, transfer money, obtain loan repayments and manage foreign exchange transactions.
And the good sign is that the operational costs necessary to facilitate and process these various financial transactions are reducing. Physical branches are no longer necessary. Digital banks are a great alternative to traditional financial institutions and capital-infused startups and large corporations.
Indeed, companies are increasingly considering neobanks and fintech solutions. The market for white-label banking solutions continues to grow. According to the Mastercard report, more than 80% of banking users in the United States connect their bank accounts to technology applications. And this demand will undoubtedly increase.
How to benefit from all the advantages of white label banking? Let’s take a detailed look at the white label banking model and see what potential there is for you.
What is white label digital banking?
White label digital banking is a process in which financial institutions provide out-of-the-box banking solutions ready to be integrated into any company’s application or site for business enhancement. Third-party fintech companies are the ones that offer such solutions. They have all the necessary infrastructure: from the development team and licenses to software and infrastructure.
How it works? You can purchase an off-the-shelf fintech solution through the help of shared access to application program interfaces (APIs) with a third-party vendor. The provider allows you to create new financial products or add new features or integrations to a current product without building them from scratch, all within the existing infrastructure.
This is one of the most effective ways for newcomers and startup owners to accelerate their go-to-market strategy. The good news is that you don’t have to deal with technical hurdles, getting licenses, and dealing with regulatory issues.
As a result, you receive a ready-to-use product that you can take to market immediately and focus on what you do best: developing and delivering a brand and marketing strategy. Technical issues can be left to those who excel.
Example of white label banking products
There are many white label banking products and services. Integrating them into your existing or new products will accelerate your business growth and expansion. Here are some examples of such products:
- Customer Onboarding: When a new customer signs up for the service, they can go through an onboarding process that will ensure they get all the crucial information to create an account.
- Issuing a virtual card: With all the licenses and regulations you get from white label banking solutions, it is much easier to start issuing virtual cards in online banks.
- Bill Payments and Currency Exchange: An instant payment network is one of the earliest and most viable features of a digital bank. Your customers will be offered different currencies, payment and exchange methods, loans, sub-licenses, etc.
- Withdrawals and deposits: People choose the digital banking experience for convenience, speed, and no bureaucracy. With a white label digital banking provider, your customers will be able to deposit and withdraw much more easily.
Benefits of using a white label banking model
Removing Licensing and Regulatory Barriers
This is one of the most obvious benefits of using white label banking software. You don’t need to wait to collect all required documents, licenses and regulations. All difficult tasks associated with government regulations will be handled for you.
Customer satisfaction and loyalty
The more features your own digital bank has and the more convenient it is, the more your customers will love you and stay with you as long as possible. User engagement, brand trust, loyalty – having access to a wide range of products and services on your website or app will give you all of that.
saving time and money
Time is the most precious resource. And developing your fintech software or application from scratch is one of the most time-consuming and expensive tasks. White label banking allows you to skip it and immediately move on to more interesting steps such as marketing and branding. For example, businesses of all shapes and sizes are using Crassula’s white label platform and launching their fully functional digital banks within days.
Fully customized products and services
With white label banking, you can take on the challenge of creating sophisticated banking products quickly and hassle-free, as all the solutions are already pre-made for you. And they are ready to be integrated at any time.
The use of white label solutions for digital banking is not a new approach in the financial sector, but remains innovative. Companies that decide to adopt it will be ahead of the curve before white label banking becomes mainstream.
This offer is particularly interesting for startups and new entrants in the sector who can build all of their tailor-made banking products using white label solutions and satisfy consumer desires thanks to its agile nature.
If you’re striving to improve your customer service with white label solutions, there’s no room for hesitation. This adjustable business model works great for everyone. Ultimately, you will be rewarded with a rapid increase in demand and new revenue streams, leaving your competitors behind.