6 Reasons Why You Should Use White Label Banking Solutions;

Instead of Building Everything from the Scratch

Ever heard of White-Label banking solutions?

Before diving into the topic, it is important to understand what white-label is. White-labeling is when a company takes another party’s finished products, throws its label around these products, brands them, and advertises these products as their own. The fun part is that you can come across a white-label product and not recognize it because it is made for you not to know.

White-labeling, which is sometimes referred to as private labeling, allows these companies to create entirely new and different user experiences without actually going through the whole process of creating new products.

Some people may assume that white-labeling is packaged thievery, however, in this particular case, it is highly beneficial to both parties. Think of white-labeling as a way of making an existing product better than it used to be.

Although white-labeling is most prevalent in the retail market, it is becoming an increasingly popular strategy in the banking sector, especially among Neobanks and Fintech. A white label bank is a Banking-as-a-Service (BaaS) contributor that makes use of another bank’s or product’s application programming interfaces (APIs) to create its financial products over an authorized bank’s architecture that is in existence.

I can understand why you’ll want to build your product and see it through to the very end. I mean, that’s the whole idea of entrepreneurship, right? However, it doesn’t always work that way. Sometimes, creating a product from scratch to the finish might be a trap to set you up for failure.

You could be repeating the same mistakes that some other people have made, spending too much money on tools for development, or even slowing down the time your product should go into the market, all the while keeping your product in a doomed development loop.

Asides from the aforementioned possible pitfalls, there are benefits that white-label banking solutions have over building products from scratch. These benefits include:

1. Branding Is Quick and Easy

White-label banking solutions can generally add new and spicy features to your business and brand. These banking solutions are typically unified and readily available, making branding extremely easy and quick. As a reselling business, you can be assured that you won’t have to spend time, energy, and effort on research and development. All you will be concerned with is just adding your own identity and going back to focus on what’s important, which is your business.

2. Customer Satisfaction

What business or brand doesn’t want happy and satisfied clients? None, right? Organizations/companies who use web services and mobile applications supported and backed up by white-label solutions have more access to impeccable and flawless user experiences to sign in to their mobile app or the bank’s website with little or no service interruptions at all.

This is made possible by banking on a white-label solution’s core architecture that has been tested and maintained thoroughly through industry-standard methods. The customers of any product have an end goal in mind, which would be ease of access and uninterrupted service, and it will be more effective to liaise with white-label banks with their licenses to help them achieve their goals seamlessly.

3. Conserve Resources

You can build products from scratch to finish and get the desired results. However, you will incur many costs in the research and development phase of your software development lifecycle. You will have to employ both digital and on-site skills to build these products.

You might even repeat the same mistakes other brands have made while building something similar. However, with white-label bank solutions, you’re sure to avoid research and development costs. You can also bet that these white-label banking solutions will skip the common errors you could have made. Asides from money, you will spend less time building products and quality services. Investing in existing companies by building your product with their service offerings is more cost-effective for these finished products and services.

4. Shorter Time-To-Market

When building or developing a service (or product), you cannot escape the testing phase. The testing phase is where you get to spend a lot of time testing these features or services to see if they are user-friendly and adaptable.

With white-label banking solutions, you’re sure to skip this phase partially because any solution you’re banking on as your white-label would’ve been thoroughly tested, therefore, you can market your products more quickly. These solutions help you focus on configuring solutions and selling these products and services.

5. Getting Acquainted with The Products

Building financial services and applications on your own is possible. However, since the fintech industry has evolved and keeps changing, the product development process can take a long time (up to a year or two). This, in turn, affects the applications or services and makes them outdated before the release date. However, with white-label solutions, you are sure to have your applications in the market when the relevance and use are still very much necessary. They help you get very acquainted with the products and services you’re building.

6. Work With Budget

Since fintech companies can delay their project timeline, your already budgeted prices can skyrocket and increase. However, with white-label solutions, you know how much you’re working with from the very beginning to the end regardless of issues in the project timelines of fintech.

Conclusion

These benefits and more are available to you when you build your products and service offerings using white-label banking solutions rather than building your products from scratch.

For any Neobanks, fintech, and non-financial industry companies and organizations looking to build financial products and service offerings including loan applications, customer management systems, accounting systems, client onboarding and KYC, AML applications, banking systems, and a whole lot of other product offerings, Woodcore is a composable cloud-native core banking application that you can use as a white-label for your services. Send us an email at sales@woodcoreapp.com to explore possible areas of partnership.