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Modern FinTech business very often benefits from technological solutions. More and more companies in the financial business are daring to go to the next level with their services in order to reach a wider range of customers and be one step ahead of the available competition. Therefore, more and more initiatives are being developed to facilitate this process.

One of them is White-Label banking. This is a solution in which a financial institution partners with a technology provider with the intention of offering banking services to users under its own brand banner. In this case, the software provider is responsible for creating the banking software and providing operational support to the bank itself. The role of financial institutions in this case is to focus on building and maintaining client relationships.

Table of Contents:

  1. White-Label software for all types of banks
  2. White-Label Banking as the sharing economy in Banking and FinTech
  3. What are the Main Benefits of a White-Label Banking Platform?
  4. Businesses That Can Benefit from White-Label Banking
  5. What is the cost of implementing a White-Label banking solution?
  6. Create Your Own Digital FinTech Product with Railwaymen

White-Label software for all types of banks

Digital banking solutions within White-Label platforms are tailored for all types of banks. Whether we mean standard physical branches or mobile banks. The White-Label digital banks initiative allows financial institutions to provide comprehensive services without having to spend money on developing and maintaining dedicated technology. The presented approach guarantees any bank to launch any product on the market with full scalability and cost efficiency. In addition, brand identity and concern for the appropriate customer experience is ensured. White-Label mobile banking platforms provide users with flexibility, personalization and quick adaptation to current industry trends. These relationships make it possible for any bank to become a competitive player in the digital banking space.

White-Label Banking as the sharing economy in Banking and FinTech

The sharing economy is a phenomenon that surrounds us more and more in the public space. Who among us hasn't heard about the opportunities provided by platforms such as Uber or Airbnb. White-Label banks, too, can provide FinTech companies with access to the infrastructure and experience of established banking providers. Opening up to all forms of collaboration is associated with improved efficiency, innovation and gaining benefits on the part of both providers and end users. The sharing economy also affects demand for financial products, which develops the idea of open banking and affects the marketing of the companies that decide to launch and use it. In this way, financial services can drive business growth.

sharing economy in finance

What are the Main Benefits of a White-Label Banking Platform?

Opening up to the possibilities of White-Label banking software comes with many benefits worth mentioning. One of them is the ability to quickly enter the market with their own branded digital banking services while saving time by bringing new financial products to market. With existing infrastructure and available technological capabilities, organizations can quickly bypass the process of building FinTech solutions from scratch. The time savings in this case can be transferred to customer relationship concerns, marketing, branding and product innovation of all kinds.

Another convenience is that White-Label banking contributes to scalability and flexibility of the bank itself. Because banking software is customized to handle as many transactions and users as possible, the banking enterprise can be grown without compromising efficiency, security or customer experience. In addition, financial institutions can respond to the changing environment, pricing and traffic dynamics, while deciding to introduce new features and services to accommodate user requirements.

White-Label solutions also impact cost efficiency. By embarking on a partnership with technology providers, financial institutions do not have to devote resources to all kinds of costs arising from initial investments and maintenance costs. This makes resource allocation more strategic. White-Label platform also allows for a high level of personalization. Financial services companies can customize solutions according to their own intentions.

The White-Label idea is also an initiative that encourages all kinds of business collaboration and innovation. Entering into cooperation with a technology provider translates into continuous improvement. Cooperating in this way allows one company to remain at the forefront of technological progress. In addition, it benefits from access to modern solutions and quickly adapts to current market trends and regulations.

Businesses That Can Benefit from White-Label Banking

White-Label initiatives are not limited to specific industries or types of financial services companies. Both traditional and digital banks open to the opportunities of open banking can benefit. Digital transformation allows us to gain new skills and at the same time get out in front of current industry trends and regulations. That's why it's crucial for larger full service companies to ensure that their customers continue to benefit from their branding capabilities.

It's not just standard businesses that can benefit from the shift in demand toward digital banking systems. Startups also have their space to exploit. These businesses can use and leverage the available infrastructure and knowledge they have to bring their financial products and services to market. Due to the nature of their business, it is important to develop a unique brand and value proposition that will help attract customers and provide unique features against the competition available in the market. White-Label banking is, from the startup's point of view, an opportunity to enter the market quickly and at the same time efficiently.

digital transformation in banking

While listing the types of companies, one should not forget about non-bank financial institutions (NBFIs), which include any payment service providers, lending platforms, investors, etc. Any industry can find something to like in these solutions, create them, and turn them into a hallmark. NBFIs often expand their service offerings, through which their new revenue streams are diversified. In addition, they work on loyalty and increasing customer loyalty, which is one of the key factors often overlooked by businesses.

What is the cost of implementing a White-Label banking solution?

The costs resulting from a White-Label banking solution can vary depending on several factors. One example of them is the scope of the FinTech application or website being implemented. The cost is a result of the specific functionalities and features indicated by banks and other financial institutions. It is known that any basic solution will generate lower costs than in the case of advanced functionality such as expanded analytics using Artificial Intelligence (AI) capabilities, or at least integrated payment systems virtual cards and transactions.

Another component of cost is the personalization of the solution. Banking software can be tailored to an institution's specific needs and requirements, and such a solution requires a customized approach from developers. Such resources consist of user interfaces, integration with legacy systems, and many other functions related to the bank and current business. The more detailed the bank and application development requirements, the higher the cost.

white label banking solutions

A very important but not always appreciated issue in White-Label solutions is security. The more sophisticated the customer protection systems, the higher the fees. In the case of this factor, it is not worth saving money, as customer security should be one of the priorities for financial services. Therefore, before calculating the solution, it is worth considering how to provide and create a safe and secure space for users of the site or mobile platform.

The last, but equally significant aspect regarding cost is any integration with features available in the FinTech application, platform or service itself. If extensive data migration, system integration or upgrades to an older system are required, this can result in higher implementation costs. The cost is made up of factors such as the level of technical expertise, availability of upgrades or support from the technology or service provider.

Create Your Own Digital FinTech Product with Railwaymen

If you want your company to have the right software tailored to the requirements of the industry, we have a good solution for you. Railwaymen is an experienced software house on the market, which has been developing innovative web and mobile applications for representatives of large enterprises of various industries for more than a dozen years. One of the company's areas of activity focus is FinTech enterprises and solutions tailored to their individual needs. Therefore, we encourage you to visit our Case Studies, in which we discuss in detail our past implementations. Who knows, perhaps your project will also join the ranks of our successful ventures.