The concept of digital banks has existed for a while now and revamped the way we bank for the better.
Nowadays, one can easily create and operate a savings account, transfer money, get loan payments, and manage foreign exchange transactions.
And the good sign is that operational costs needed to facilitate and process these different financial operations are getting reduced. Physical branches are no longer necessary. Digital banks are an excellent alternative to traditional financial institutions and startups infused with capital and large enterprises.
Indeed, businesses are considering neobanks and fintech solutions more and more. The market of white-label bank solutions keeps expanding. According to the Mastercard’s report, more than 80% of banking service users in the U.S. are connecting their bank accounts to technology apps. And this demand will undoubtedly increase.
How to take advantage of all the benefits of white label banking? Let’s look at the white label banking model in detail and see how much potential there is for you.
What is white label digital banking?
White label digital banking is a process in which financial institutions provide pre-packed bank solutions ready to integrate into any company’s application or site for business improvement. Third-party fintech companies are those who make such solutions. They have all the infrastructure for it: from development team and licenses to software and infrastructure.
How does it work? You can purchase a ready-made fintech solution as it is through the help of shared access to the application program interfaces (APIs) with a third-party provider. The provider lets you build new financial products or add new features or integrations to a current product without creating them from scratch — all within the existing infrastructure.
It is one of the most efficient ways for newcomers and startup owners to accelerate their go-to-market strategy. The good news is you do not have to deal with technical obstacles, obtain licenses, and resolve regulatory issues.
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. Technical issues can be left to those who excel.
Example of white label banking products
There are a lot of different white-label banking products and services. Embedding them into your existing or new products will accelerate the growth and expansion of your business. Here are some examples of such products:
- Client onboarding: As a new client signs up for the service, he can go through an onboarding process that will ensure he gets all the crucial information for creating an account.
- Issuance of 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 first and most viable features of a digital bank. Your clients will be provided with different currencies, payment and exchange methods, loans, sublicensing, etc.
- Withdrawals and deposits: People choose the digital banking experience for convenience, speed, and lack of bureaucracy. Thanks to a white label digital bank provider, your customers will be able to make deposits and withdrawals much easier.
Advantages of using a white label banking model
Removing license and regulatory obstacles
This is one of the most obvious advantages of using white label banking software. You do not need to wait to collect all the required documents, licenses, and regulations. All the challenging 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 clients will love you and stay with you for as long as possible. Users engagement, brand trust, loyalty — having access to a wide range of products and services within your website or application will give you all of that.
Saving both time and money
Time is the most valuable resource. And developing your software or fintech application from scratch is one of the most time and money-consuming tasks. White label banking allows you to skip it and immediately go to more interesting stages such as marketing and branding. For example, businesses of all kinds and sizes use Crassula’s white-label platform and launch their fully-functioning digital banks in a matter of days.
Fully customized products and services
With white-label banking, you can go through the challenge of building sophisticated banking products quickly and hassle-free, as all the solutions are already pre-made for you. And they are ready to be integrated any time you want.
To sum up
Using white label solutions for digital banking is not a new approach in the financial industry but is still innovative. Companies that will decide to go with it will be ahead of the curve before white label banking becomes mainstream.
This offer is especially beneficial for startups and newcomers in the industry who can build all of their customized banking products using white label solutions and satisfy consumers’ desires with its agile nature.
If you strive to improve your client service with white label solutions, there is no place for hesitation. This adjustable business model perfectly works for everyone. Ultimately, you will be rewarded with an early boost in demand and new revenue streams, leaving your competitors behind.