In recent years of rapidly evolving financial services, big names in the banking ecosystem have turned to white label fintech practices. With white label banking or financial software solutions, companies can make sure that all of their customers have a delightful banking experience with convenience and support innovation. But how exactly does it work? Let’s find out together.
What is White Label Fintech?
White label fintech is a partnership between a company and a financial institution. It is called white label because the companies involved in it do not necessarily operate in this segment. However, they can purchase software needed to develop and rebrand the financial product as its own. Having the existing infrastructure is just enough to insert the contracting company’s brand into the services and tailor this financial solution to its customers’ needs. In this case, the provider of financial solutions is responsible for the development of the product and all updates, security management, and industry regulations.
What are the main advantages of a white label fintech platform?
You can enter new markets
White label banking is the current trend in the banking industry as it allows non-bank players to offer their financial services to customers directly. In other words, more companies are open to new markets. They have the possibility to say “yes” to an innovative catalog of projects and services that you could not have developed and offered independently.
You can increase brand loyalty
Many enterprises use white labeling to create brand loyalty. For example, by using white label products manufactured in a central facility and then labeled with the company name, you can create a store-branded product line. And as it is focused on reducing production costs, white label products are often more affordable, incentivizing consumers to purchase them. As a result, buyers begin to become attached to the store brand, making an active effort to shop at that particular store and purchase its products when faced with multiple labels to choose from.
You can gain a competitive advantage
The intensification of competition increases as customers keep abreast of the latest development, and that’s when white label fintech services come in handy. New cutting-edge technologies help companies reduce their costs, address compliance issues more efficiently and focus on markets where they will be able to develop a competitive advantage.
You can allocate resources smarter
White-label software development is a time-saving tool opting for which will allow you to benefit from the technical expertise that your company might lack. You don’t need to worry about the knowledge of the market or the budget you will need to spend on your team of developers. Instead, you can utilize your own expertise to boost your business through marketing work. There is no more headache for you.
How to choose a white label company?
First things first, look for a company with an innate understanding of what it takes to adjust services to your customers’ needs. It’s not enough to have just ample expertise. The white-label enterprise you are choosing needs to know the depth of your particular business case. Complete alignment with business needs and various functions is never easy to achieve. But who said it was impossible?
If you want to find the best white label company, check their customer history in the past. After all, you will be more interested in an agency that has an exhaustive list of customers and proven successful financial projects. For instance, Crassula is a very reputable white-label software solution on the market. When you visit their website, you can look for case studies of companies that Crassula used to work with. It will give you a much better understanding of whether the company is a good fit for you or not.
Last but not least, a decent white-label platform needs to initiate working hand in hand and centralizing its resources for your company’s growth. Depending on the size and cohesion of the network, success is not always guaranteed. So the secret is to find a partner with the compatibility and complementarity of resources, reputation, and, most importantly, values and interests. You both pursue shared goals: value creation and boosted economic performance at the end of the day.
A white label service is an incredible tool helping you diversify your offers and upgrade services to a whole new level. If you aim to reinvent the customer relationship and bring new innovative solutions to the market, a white-label platform is what you need. The main thing is to find a good company that would build the financial product you dream about. Good luck with your white-label software hunt!