Developing a payment software from scratch can be a time-consuming process. You need to hire an experienced technical team, control the development process and comply with financial regulations at the same time. This process can take a couple of years, while the payment market is constantly changing and growing.
By using a white-label solution, payment businesses can launch their payment services quickly, without needing to develop their own solution. In this article we highlight what is a white-label digital banking, its features and advantages for financial businesses.
What is a white-label digital bank?
A white-label digital bank is a type of financial institution that provides a payment platform to other companies to offer their own branded financial services. This type of bank acts as a technology provider, allowing companies to offer banking services under their own brand name, without the need to build their own banking infrastructure.In other words, a white-label digital bank provides a turnkey solution for companies looking to offer financial services without investing in the development of their own banking technology. The platform typically includes features such as account opening, card issuance, payment processing, and account management.
The companies that use white-label digital services are often non-financial institutions, such as retailers, fintech startups, or telecom companies. By partnering with a white-label digital bank, they can offer banking services to their customers, expanding their offerings and generating additional revenue streams.
What is the reason for the popularity of white-label banking apps in the fintech industry?
White-label banking apps provide fintech companies with a ready-made solution that allows them to enter the banking services market quickly and cost-effectively, while maintaining their brand identity and benefiting from the expertise of banking professionals. We highlight some research data related to white-label banking:
- According to a report by Research and Markets, the global white-label banking market is expected to grow at a CAGR of 10.6% from 2021 to 2028.
- A report by Grand View Research estimates that the global white-label banking market size was valued at $1.6 billion in 2020 and is expected to reach $5.1 billion by 2028.
- In a survey conducted by Finastra in 2020, 72% of the banking executives surveyed said that they were considering offering white-label banking services to other companies.
These statistics indicate that white-label banking is a growing trend in the financial services industry, with increasing interest from both banks and fintech companies. The potential for revenue growth and the opportunity to offer differentiated services are driving the adoption of white-label banking services.
Benefits of a white-label digital bank for businesses
The white-label services can bring exceptional benefits for users such as: fast payment processing, an easy-to-use application and wide functionality. But let’s consider several advantages of a white-label digital bank for businesses:
- Cost savings
One of the primary advantages of a white-label digital bank is the cost savings it offers. Building a banking infrastructure from scratch is expensive, time-consuming, and requires significant resources. By partnering with a white-label digital bank, businesses can avoid these costs and instead focus on their core competencies.
- Faster time-to-market
With a white label digital bank, businesses can launch financial services much faster than if they were to build their own banking infrastructure. This is because the technology is already developed, and the implementation process is much simpler.
- Customizable Branding
With a white-label digital bank, businesses can customize the branding of their financial services, including logos, color schemes, and user interfaces. This allows them to maintain their brand identity and differentiate themselves in the market.
- Access to Expertise
White Label Digital Banks are staffed with banking experts who understand the regulatory and compliance requirements of the industry. By partnering with a White Label Digital Bank, businesses can tap into this expertise and ensure that their financial services are fully compliant with all relevant regulations.
- Scalability
A White Label Digital Bank provides a scalable solution that can grow with a business as it expands its financial services offerings. This means that businesses can easily add new products and services as their customer base grows, without needing to invest in additional infrastructure.
White Label Digital Banks provide businesses with a modern solution that allows them to enter the financial services market quickly and cost-effectively, while maintaining their brand identity and benefiting from the expertise of banking professionals.
Businesses that can benefit from white-label banking
White label banking can benefit a variety of businesses, from startups to established companies. Here are some examples of businesses that can benefit from white label banking:
- Fintech startups
Fintech startups can benefit from white-label banking by offering banking services under their own brand, without having to invest heavily in developing their own banking infrastructure.
- Small and medium-sized businesses
Small and medium-sized businesses that want to offer banking services to their customers or employees can benefit from white-label banking solutions that can be customized to meet their specific needs.
- Non-bank financial institutions
Non-bank financial institutions such as payment processors, remittance companies, and mobile wallet providers can benefit from white-label banking by offering banking services that complement their existing offerings.
- E-commerce platforms
E-commerce platforms that want to offer their customers a complete shopping experience can benefit from white-label banking solutions that enable them to offer payment and banking services under their own brand.
- Insurance companies
Insurance companies can benefit from white-label banking solutions that enable them to offer insurance premium financing, premium collections, and claims disbursements to their customers.
In summary, white-label banking can benefit a wide range of businesses by providing cost-effective, flexible, and customizable banking solutions that meet their specific needs.
Considerations for Choosing White Label Banking Software
When choosing white-label banking software, there are several considerations that businesses should keep in mind. Here are some key factors to consider:
- Functionality
The white-label banking software should offer the functionality that the business requires, such as account opening and management, payment processing, and fraud detection.
- Customization
The white-label banking software should allow for customization, such as branding and user interface, to match the business’s specific needs and brand identity.
- Integration
The white-label banking software should be easily integrated with other third-party systems that the business uses, such as accounting software and payment gateways.
- Compliance
The white-label banking software should comply with all relevant regulations and standards, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
- Security
The white-label banking software should have strong security features to protect sensitive customer data, such as two-factor authentication and data encryption.
- Scalability
The white-label banking software should be able to scale with the business’s growth and changing needs, such as the ability to handle increasing transaction volumes and support additional products and services.
Businesses should carefully evaluate white-label banking software providers to ensure that the software meets their specific needs, is compliant with relevant regulations, and offers comprehensive support and maintenance.
SDK.finance white-label banking software
SDK.finance provides white-label banking software to create digital banking solutions and deliver best-in-class financial services so customers choose your bank and stay there for life. Our payment software suits different companies types such as neobanks, digital wallets and payment platforms.
Here are some of the key features of SDK.finance’s white-label banking solution:
| Feature | SDK.finance white-label platform |
| Payment processing | The platform includes payment processing functionality, enabling businesses to offer a variety of payment options, including card payments, bank transfers, and mobile payments. |
| Multi-currency support | The platform supports multiple currencies, enabling businesses to offer banking services to customers around the world. |
| API integration | The SDK.finance platform is designed to integrate with other third-party systems via its 400+ API endpoints, enabling businesses to create a complete banking ecosystem much faster and more easily. |
| Customizable branding | SDK.finance allows businesses to customize their branding with their own logo, colors, and other branding elements to create a consistent brand identity. |
| Scalability | The platform is designed to be scalable, enabling businesses to grow their banking services as their customer base expands. |
| Expense visualization | Help customers with tracking their spending through expense charts and graphs, plus show transactions on the map option for maximum convenience. |
| Money transfers | Users can easily send and receive money fast and seamlessly, starting from the internal P2P transfers out of the box to cross-border remittances via integration with payment- and service providers. |
| Customer management | The platform includes customer management functionality, enabling businesses to manage customer accounts, transactions, and other data. |
| Support and maintenance | SDK.finance offers comprehensive support and maintenance services, including technical support and software updates, to ensure that businesses can offer banking services with confidence. |
SDK.finance’s white-label banking solution offers a range of features and functionality to help businesses offer their own branded banking services, while ensuring compliance, security, and scalability.
Wrapping up
A white-label digital bank provides an efficient and cost-effective solution for companies looking to enter the financial services market without the significant investment required to build their own banking infrastructure.
This solution offers several benefits, including cost savings, faster time-to-market, customizable branding, access to expertise, and scalability. Use SDK.finance white-label banking platform to build a digital payment solution in a short time, without starting from scratch and benefit from using this fintech system.
