Nayeen Al Amin

Private-label banking vs white-label banking Yes, there is a difference!

Velmie provides the entire digital banking infrastructure with connectivity to multiple card issuers, ACH and SEPA transfers, identity verification providers, and other services. On top of that, the back-end infrastructure is modular which allows configuring the software to particular markets or business cases. We effectively address technology cases of retail and business banking, brokerage firms, international money transfer apps, savings and loans solutions, and more.

white labeling banking

Schedule a call with ProductFy’s team to learn more about credit builder cards, white label debit cards and FinTech platforms,  and how you can launch your own white label banking products. In this regard, it is essential to ensure the high integrability of a fintech application. As you can see, white label solutions have a powerful part to play in the growth of the fintech and retail AWS Cloud Engineer Job Description Template sectors. Businesses get to retain all the value of the direct customer relationship, while outsourcing complex solutions to those who manage the underlying system. Not only that, but the use of white label solutions means minimal input or expertise is required internally. When it comes to choosing a white label development provider, there are a few key things to keep in mind.

What does white label mean in Fintech?

Private label financial services and BaaS technology are no longer brand new technologies in the industry, but firms that get involved now will still be ahead of the curve by the time regulation becomes mainstream. The UK’s Competition and Markets Authority has already enrolled the nine biggest banks and building societies in its Open Banking Directory, and others are coming soon. After that, it won’t be long before other countries follow suit with their own regulations. White-label banking means that one company has everything to provide banking services and provides a complete package to other companies.

Why is it called white labeling?

A white-label product is a product or service produced by one company (the producer) that other companies (the marketers) rebrand to make it appear as if they had made it. The name derives from the image of a white label on the packaging that can be filled in with the marketer's trade dress.

It includes web and mobile trading applications, middle and back-office, and trading APIs. Turnkey stock trading technology easily integrates through APIs with execution venues, clearing, and market data providers of choice. Developing fintech applications or software from scratch can be complex and overwhelming, especially for a company getting into the financial market for the first time.

Automating the Loan Origination Process

You can even save internal resources because you no longer need to hire full development teams or handle debugging. With the distinct elements of the digital service set up for you by the BaaS, you eliminate any hassles involved with financial service infrastructure. Each service integration is capable of updating your client’s web page flow, and you can present branded graphics that improve customer loyalty towards your financial service. You save all the time, effort, and expense of developing a brand new technology stack. As a result, you receive a ready-made product that you can put into the market right away and focus on doing what you are the best at — building a branding and marketing strategy and seeing it through to success.

Sometimes called private-labeling, white-labeling gives brands an opportunity to create entirely new customer experiences without all the work of—well, you know—actually creating new products. If you need more details regarding white label banking, S-PRO can help you discover a wide range of digital solutions and White Label API’s. Companies that take advantage of the speed to market and overall agility that white label banking offers will take a major foothold over slower legacy systems.

White-label banking development process

Companies that are not originally from the financial universe can optimize their financial management by relying on their own bank to make transactions, thus streamlining processes and reducing operational costs. As we’ve seen, it is not necessary to have such a robust internal team nor allocate so many resources like infrastructure and equipment when adopting this type of platform. Processes are also optimized since part of the solution development is already finished, tested and validated. Nowadays, one can easily create and operate a savings account, transfer money, get loan payments, and manage foreign exchange transactions. Commercial banks in Nigeria have used the Agent Banking model to sign on agents driving their retail banking operations. With this strategy, banks are penetrating more regions and communities at far less cost.

Looking at the e-commerce and banking sectors today, it’s right to say white label solutions (also referred to as private label financial service solutions) are on the rise. As these industries become more open to partnerships with third parties, it has become easier to save both time and resources when deploying new solutions. In this article, we’ll take a closer look at white-label digital banking solutions – how they work and why they can be a great alternative to custom development.

These can rebrand the whole package and offer banking services to their customers. And in financial services, white-label banks or white label digital banks aren’t trying to replicate the traditional banking model. This is the concept of open banking, where financial services allow third-party services to access customer data and digital solutions. With a white-label fintech platform, a financial services company has to compete with organizations using the same but rebranded software. Therefore, institutions have to fight for the same audience, for example, by providing additional value or offering lower prices.

Furthermore, a banking license will be necessary if the company plans to provide certain payment services, including the acceptance of customer deposits or withdrawals. It also gives consumers better protections, such as the Financial Services Compensation Scheme (FSCS) in the UK, which guarantees to refund customers their money up to £85,000 worth of deposits. In short, white labelling, also known as private labelling, is an agreement between two parties where one party provides services or products to another party under that other party’s brand name. The earliest known example of private labelling a product goes back to the Great Atlantic & Pacific Tea Company (A&P), rooted in the 19th Century. One such company offering this type of solution is Bitpanda, which provides white-label crypto, stocks, commodities, and ETF trading and investment options for financial services companies worldwide. The trouble with white-label banking software is that supplies might fail to adhere to government and local financial standards.

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