Fintech companies are developing new solutions to assist individuals and corporations in managing their finances. There were 8,775 fintech startups in North America as of February 2020.
Fintech require the appropriate technologies to deploy their services. Developing your applications and features from the ground up can be difficult, time-consuming, and costly. White label neo banking (configuring and branding existing financial apps from third-party vendors) provides an alternative that can assist fintech to go to market faster and save money. We’ll explain what white-label banking is and how to use it to gain a competitive advantage, so you can decide whether it’s a good fit for your firm.
What Is White Label Banking?
What is white-label banking, commonly referred to as private-label banking? First, it’s important to grasp what white-label items are. White labeling is a practice that has grown in popularity across a wide range of sectors.
The basic idea behind private labels, also known as white labeling, is that one company, let’s call it Company A, will outsource a product or service to another company, Company B, that specializes in that product or service. Company A will then put its spin on the development and market it as its own. In some circumstances, consumers will see Company B’s name on the goods, yet Company A will always promote the product to consumers.
So, how does white labeling work in the banking sector? Non-banking organizations employing banks to produce branded debit or credit cards for their consumers was one of the earliest types of white-label banking. This prevented enterprises like department stores and airlines from obtaining their banking licenses or jumping through all the hurdles associated with providing financial services.
As Banking as a Service (BaaS) becomes more popular, white-label banking enables fintech to provide financial services online by utilizing applications from white-label suppliers. A fintech business can use existing application program interfaces (APIs) from a bank or a white-label company as the foundation for their financial solutions with white-label banking. In other words, rather than developing new fintech tools from scratch, these organizations can use current tools to create their own branded financial solution.
Banking as a Service vs. White Label Banking
White-label banking and banking as a service are frequently used interchangeably. You might even hear the “white label banking as a service” mixed in. However, these concepts are only partially synonymous. The minor distinction is that BaaS aims to deploy the financial services that businesses borrow from white-label suppliers. In other words, these are two parts of the same puzzle, connecting banks and end consumers via helpful intermediaries.
Advantages of White Label Banking
When you consider the benefits of employing white-label products, their popularity in the financial realm makes sense. There are several reasons why fintech opts to work with a white-label banking provider. You can construct your finance application utilizing APIs from a white-label source.
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 then test them to iron out any bugs that may arise. This will necessitate a significant investment of both time and money. You can save money by outsourcing this process.
Expertise:Â Another advantage of outsourcing is knowing that experts designed your programs. Risingmax Inc white label apps, for example, represent the most recent product research and have been thoroughly tested. This means you can rely on your applications to be user-friendly and to assist you in deploying your services as efficiently as possible.
Get to market faster:Â By skipping the lengthy process of developing and testing your applications, you may get your financial product to market considerably faster. All you have to do is configure the pre-built solutions and advertise the applications. This can also be a terrific method to add features to your primary function without starting from scratch.
Using White Label Banking
White-label internet banking lets you provide customers with beneficial services. These include:
- Client onboarding: New users must complete an onboarding procedure to set up their accounts when they sign up for your assistance. Since this is a new user’s first engagement with your services, the onboarding process must be smooth and user-friendly.
- Deposits and withdrawals: Deposits and withdrawals are a basic part of banking and fintech services. If you need users to withdraw or deposit money, or if you need to accomplish this automatically, you’ll need a special app.
- Virtual card issuance: Debit and credit card issuing no longer requires a physical card or in-person process. You may issue virtual debit or credit cards through your website or app with the correct white label integration.
- Savings and checking accounts: White-label banking lets you manage users’ checking and savings accounts. Micro-savings solutions allow consumers to save modest amounts of money over time.
- Insurance quotes: A white-label banking solution can give consumers life insurance quotes. Risingmax Inc simplifies insurance quotes and onboarding. Using a user’s information, you can easily generate an insurance quotation.
- Mortgages: Whether you need a means for people to apply for a mortgage online or want to give a mortgage calculator, a white-label banking solution can help you do so in a user-friendly and easy-to-deploy way.
- Combining white-label products from diverse suppliers takes a lot of work. With Risingmax Inc, you can integrate all your solutions with one API. This unites all the functionality you need for your financial product.
Fintechs and the Future
People used to manage their money with pen and paper or with the assistance of a personal accountant. People who were not as financially knowledgeable or needed the means to employ a professional were unfortunately at a disadvantage when it came to getting the most of their cash. Today, fintech has transformed the banking and personal money management (PFM) industries by making a wide range of useful features readily available.
Startups continue to address the gaps in current services by developing novel solutions to assist individuals with all aspects of their finances. White-label banking enables numerous companies to get their answers to market quickly, allowing them to beat the competition and help their users benefit from their services immediately.
As new technologies continue to turn the financial industry on its head and elevate consumer expectations, white-label solutions will serve as the foundation for both fintech startups and legacy enterprises to provide customer services.
White labeling is not a new concept, but white label banking is a relatively recent innovation opening up unlimited prospects for fintech worldwide. White-label solutions will continue to be a significant part of what’s transforming the banking world since they allow companies to get their products to market faster and benefit from tools built by professionals. As open banking expands from the United Kingdom to the United States and other parts of the world, white-label banking in the United States is becoming more prominent.
White Label Features, Widgets, and Applications From Risingmax IncÂ
Risingmax Inc can assist you if you require white-label solutions for your fintech. Our no-code platform includes several features, widgets, and applications. You may incorporate baking and savings, personal finance management, wealth management, and other components into your financial offering using ready-made white-label crypto banking software solutions from Risingmax Inc.
You can spend little time and money developing these features from scratch and testing them in the market. Instead, you can make use of our team’s knowledge. We’ve seen firsthand how difficult, expensive, and time-consuming it is to establish these platforms by running our finance apps. That is why we are on a quest to provide white-label banking services that will aid in digitizing financial systems. Click the button below to begin developing your white-label financial app or component.
