Fintech firms are creating new financial management options for individuals and businesses. In North America, there were 8,775 fintech startups as of February 2020.
Fintech service deployment requires appropriate technologies. Creating applications and functions from scratch can take time and effort. White label neo banking (the configuration and branding of existing financial apps from third-party vendors) is an option that can expedite and reduce the cost of market entry for fintech companies. We will describe white-label banking and how to use it to gain a competitive advantage, allowing you to determine if it fits your business well.
What Is White Label Banking?
What is white-label banking, or private-label banking as it is commonly known? It is essential first to comprehend what white-label products are. White labeling is an increasingly prevalent practice in a variety of industries.
Private labels, also known as white labeling, involve one company, let’s call it Company A, outsourcing a product or service to another company, Company B, that specializes in that product or service. Company A will then add its spin to the development and market it. In certain instances, consumers will see the name of Company B on the merchandise, but Company A will always promote the product to consumers.
So, how does white labeling operate in the banking sector? One of the earliest examples of white-label banking involved non-banking organizations hiring banks to produce debit or credit cards for their customers. This prevented businesses such as department stores and airlines from obtaining banking licenses and overcoming all the obstacles involved in providing financial services.
As the popularity of Banking as a Service (BaaS) grows, white-label banking enables fintech to offer online financial services by utilizing applications from white-label suppliers. With white-label banking, a fintech company can build its financial solutions on top of existing application programming interfaces (APIs) from a bank or a white-label company. Instead of developing new fintech tools from scratch, these organizations can use existing tools to create their own branded financial solution.
Banking as a Service vs. White Label Banking
Banking as a service and white-label banking are frequently used interchangeably. Even the phrase “white label banking as a service” may be used. However, these concepts are different. BaaS aims to deploy the financial services that companies obtain from white-label providers. In other words, these are two pieces of the same puzzle, with intermediaries connecting banks and end consumers.
Advantages of White Label Banking
Considering the advantages of white-label products, their prevalence in the financial industry makes sense. There are numerous reasons why fintech companies choose to collaborate with a white-label banking provider. You can build your financial application using APIs from a white-label provider.
Save resources by building your applications from the ground up instead of adopting white-label solutions. This implies that you will want an internal team of professionals capable of coding and developing your applications. You must test them to iron out bugs. You can save money by outsourcing this process.
Expertise: Another benefit of outsourcing is knowing that professionals designed your programs. For instance, white-label apps by Suffescom Solutions Inc. represent the most recent product research and have been rigorously tested. This indicates that you can rely on your applications to be user-friendly and to help you deploy your services as efficiently as possible.
Get to market faster: By omitting the time-consuming phases of application development and testing, you can bring your financial product to market significantly faster. You are only required to configure the pre-built solutions and promote the applications. This is also a great way to add features to your primary function without starting from scratch.
Using White Label Banking
White-label Internet banking enables you to provide beneficial services to customers. These consist of the following:
- Client onboarding: When new users register for your assistance, they must complete an onboarding process to establish their accounts. Since this is a new user’s initial interaction with your services, the onboarding procedure must be streamlined and intuitive.
- Deposits and withdrawals: Withdrawals and deposits are fundamental to banking and fintech services. You’ll need a specialized app if you need users to withdraw or deposit money or if you need to automate this process.
- Virtual card issuance: The issuance of debit and credit cards no longer requires a physical card or an in-person transaction. Using the appropriate white label integration, you can issue virtual debit or credit cards via your website or app.
- Savings and checking accounts: You can manage users’ checking and savings accounts with white-label banking. Over time, micro-savings solutions enable consumers to save modest amounts of money.
- Insurance quotes: A white-label banking solution can provide life insurance quotes to consumers. Suffescom simplifies insurance quotes and enrollment. Using the user’s information, it is simple to generate an insurance estimate.
- Mortgages: Whether you need an online mortgage application or a mortgage calculator, a white-label banking solution can help you do so in a user-friendly and simple-to-implement manner.
- Combining white-label products from various suppliers requires considerable effort. Suffecom Solutions Inc. allows you to integrate all your solutions through a single API. This combines all the necessary functionality for your financial product.
Fintechs and the Future
People used to manage their finances manually or with the help of a personal accountant. Those who needed more financial expertise or the resources to hire a professional were disadvantaged when maximizing their cash. Fintech has revolutionized the banking and personal financial management (PFM) industries by making available many useful features.
Startups continue to address the gaps in existing services by developing innovative solutions to assist individuals with all financial aspects. White-label banking enables numerous businesses to get their solutions to market swiftly, allowing them to beat the competition and provide immediate value to their customers.
As new technologies continue to upend the financial industry and raise consumer expectations, white-label solutions will be the foundation for fintech startups and legacy businesses to provide customer services.
White labeling is not a novel concept, but white label banking is a relative innovation that offers limitless opportunities for fintech globally. White-label solutions will continue to play a significant role in the banking industry’s transformation because they enable businesses to bring their products to market more quickly and take advantage of tools created by experts. As open banking spreads from the United Kingdom to the United States and the rest of the world, white-label banking becomes more prominent in the United States.
White Label Functions, Widgets, and Applications Provided by Suffescom Solutions, Inc.
Suffescom Solutions Inc. can help if your fintech requires white-label solutions. Our no-code platform includes a variety of functions, widgets, and programs. Using ready-made white-label crypto banking solutions from Suffescom Solutions Inc., you can integrate banking and savings, personal finance management, wealth management, and other features into your financial offering.
You can spend little time and money developing and testing these features on the market from scratch. Instead, you can utilize the expertise of our team. By operating our finance applications, we have witnessed firsthand how difficult, expensive, and time-consuming it is to establish these platforms. Therefore, we are pursuing the provision of white-label banking services that will aid in digitizing financial systems. Click the button below to initiate creating your white-label financial application or component. Suffescom Solutions Inc. can help if your fintech requires white-label solutions. Our no-code platform includes a variety of functions, widgets, and programs. Using ready-made white-label crypto banking software solutions from Suffescom Solutions Inc., you can integrate banking and savings, personal finance management, wealth management, and other features into your financial offering.
You can spend little time and money developing and testing these features on the market from scratch. Instead, you can utilize the expertise of our team. We have witnessed firsthand how difficult, expensive, and time-consuming these platforms. We are pursuing white-label banking services that will aid in digitizing financial systems. Click the button below to create your white-label financial application or component.