White Label Banking Platform

White Label Banking Platform

Choosing fintech solutions for business is a fairly complex process, involving cybersecurity, compliance with legal regulations, and customisation to meet a partner’s specific needs. In fintech, there is a category of solutions designed to relieve business owners of headaches and give them tools to close their financial needs. We’re talking about Banking-as-a-Service. One BaaS collaboration model that is gradually emerging in the fintech market is White Label. In this article, Regulated Unired Europe would like to highlight how this works and how, with the help of which solutions, modern neobanks are moving towards more convenient niche banking and a more open economy in general.

White Label and BaaS: how it works

In general terms, white label is a type of partnership in which one company produces goods or services and the other sells them under its own brand. This approach allows each partner to do what they do best. The seller sells, the manufacturer produces.

The concept of white label was originally used in the American recording industry. Back in the 1950s, manufacturers produced vinyl records without a label (i.e. with a white label) so that retailers could put their company name on them. The word has since spread to other industries and has become widely used in e-commerce, software development, manufacturing and finance.

In IT, the white label concept is used for product development. This scheme was first used in 2001: an online mobile phone sales site offered other companies a rebranded version of its website. In the banking industry, this format of interaction is realised in the form of Banking-as-a-Service – the provision of banking infrastructure by a company to other market participants.

BaaS is a broader concept than white label. Banking infrastructure and software make it possible to assemble a certain product to which more or less automated access is provided. Such products may include card issuance, payment processing, limit management system, factoring, acquiring, document recognition, cashback services, loyalty programmes, payments, cash management, corporate accounts and other services. The client composes a set of services at his discretion and according to his needs, thus creating a customised version of his own “bank”. As for White Label, it is only a question of obtaining a set of final client products for specific needs.

The core of the White Label product is an electronic wallet that allows you to store electronic money and perform various financial transactions with it:

  • Virtual and plastic bank cards can be issued to it, which is added to Google Pay, Apple Pay, Samsung Pay
  • The wallet can be topped up in various ways, for example, from other cards or payments from partners
  • You can withdraw funds from the wallet to providers, to cards of other banks or to another wallet
  • Around the product, partners can build their custom applications using a modern API protocol

 

White label neo banking platform – who is this service for?

Neobanks with EMI/PSP licence in Europe

Many large companies turn to technology providers when they decide to launch financial products and services. They do not have their own experience in development or do not have enough resources to develop a banking product on their own. Therefore, in their case, it is more logical to buy the necessary service.

The procedure is extremely transparent: the client receives a card, pays for purchases with it, and the commission is deducted, which goes to the issuer. The information about the purchase is then passed on to the partner retailer, and it awards points to the client in the form of cashback.

Non-banks and fintechs without a banking licence

This category of business needs a whole infrastructure layer to which it can connect and thereby expand the payment functionality of its products.

In Europe, large banks are the owners of this infrastructure, while niche banking start-ups have few opportunities to develop their products. In addition, these small companies typically lack the expertise and resources to develop their own products, especially in the area of complex and highly regulated banking products.

There are situations when a company wants to test a hypothesis at the intersection of banking and non-banking organisations. There is a need to create a niche bank for a narrow segment or to combine in its offer banking and non-banking services that a specific audience has a need for. To test such a hypothesis, you need a banking licence and infrastructure. BaaS in this case helps to test this hypothesis in a simpler and cheaper way than creating an in-house bank.

BaaS can be useful to any business that wants to build financial functionality into their products, but doesn’t have the time, funds or expertise to do so.

It is important to realise that the main task of a business is to find added value to an existing core product. This can be, for example, user retention or process optimisation. Therefore, a white label should be synergistic with the core business – then this product will bring maximum benefit.

Positive impact of white label banking on the economy

White label not only lends a helping hand to businesses, but also contributes to the development of the economy. Thanks to WL, companies improve their customer experience and services, fundamentally new solutions appear on the market, cross-industry co-operation develops, startups get access to reliable infrastructure and can develop their products, which, in turn, fuels competition in the market. Thus, more and more neo-banks and niche players are emerging. Unlike large companies, they solve customer problems in a targeted and unique way, creating services for narrow needs and niche audiences for whom traditional banking is not suitable.

Conceptually, BaaS and its private White Label example is a step towards an open finance society and a more flexible economy. Many countries are moving towards open banking – banks give access to their infrastructure through open APIs.

White label digital bank

 

Private label banking solutions: customised financial products

Digital banking projects and related applications typically require significant investments of both time and capital. As an alternative to developing unique banking solutions from scratch, fintech initiatives have the opportunity to launch their offerings based on off-the-shelf white-label platforms, thus reducing the time-to-market and optimising costs. In this article, we will discuss the features of white-label digital banking solutions and the key advantages of this approach.

What is white-label digital banking?

White-label banking covers a range of back-office tasks and provides ready-to-use banking and payment products, including APIs for interaction with various BaaS providers. This approach also opens up opportunities to develop new products without having to build them from scratch and simplifies the integration of new services. White-label digital banking solutions White-label’s digital platform offers the following features: Customer onboarding and AML/KYC For account opening and registration, new customers go through a verification process and provide the required information. Inbuilt KYC/AML procedures ensure that registration processes are secure, fast and simple. Payments and Currency Transactions Developing a payment system is a complex task, but with White-label’s out-of-the-box solutions for payments and currency transactions, you can easily connect to a variety of services and offer customers a wide range of payment methods and currencies. Licensing as a service Fintech projects can operate under the licence of partner e-money, payment systems or banks. Card issuance By partnering with card issuance solution providers, you can offer debit cards under your brand. Sponsoring IBANs A multitude of regulated companies provide the ability to generate IBANs without a special licence, as well as integration with SEPA. This allows you to automate the issuance and management of IBANs via an API. The IBAN numbers issued are registered in the name of the partner, providing customers with the necessary details. Integrating different off-the-shelf white-label solutions can be challenging, but the process is made much easier with integrated solutions and a flexible architecture that allows new products to be launched quickly. White-label end-user applications and digital banking

White-label digital banking platforms typically focus on back-office operations, while end-user applications such as web banking and mobile apps provide the customer experience. They can effectively complement a digital banking solution, creating a unified user experience. Fintech companies have the ability to quickly develop apps for their customers using their own brand and style.

White-label benefits: Saving resources

Developing your own solution requires significant investments in the IT team, testing and debugging. With the purchase of a ready-made platform, you can reduce costs and implementation time. White-label products are built by expert teams, utilise cutting-edge technology, undergo rigorous testing and comply with regulatory requirements. Quick Start Avoid lengthy development and testing phases – with off-the-shelf solutions, you’re faster to introduce new features and offer them to customers. Understand the product Get to know the product upfront, testing and customising it before launch.

Advantages of white-label banking platform

Saving time and money

Building a product from scratch is a process that requires resources, often significant resources. It’s money and time, as well as risks for mistakes and unforeseen problems. White-label products offer ready-made, proven solutions, and this allows businesses to benefit from them quickly and without hassle.

Flexibility and scalability

Typically, off-the-shelf solutions are equipped with a variety of features and can be customised according to business needs. In addition, white-label solutions provide the flexibility to scale services. Let’s take the example of a retail business looking to expand its operations.

Using a white-label e-commerce platform, a startup can easily integrate multiple functionalities such as inventory management, customer relationship management, etc.

Expertise from the best in the industry

White-label providers tend to have powerful expertise and cherish their reputation. They focus on the quality of their solutions. Otherwise, no one will recommend them or buy from them.

Being able to focus on what you do best.

Instead of spending effort, money and time on something that is beyond the expertise of your team, you buy an off-the-shelf solution and focus on developing your product. Let’s take Shopify as an example.

The leading e-commerce platform uses Stripe to process its online transactions and thus frees up its time to focus on providing the best user experience to build an online shop.

It’s not white-label – after all, the point of such co-operation is not to let end customers know about it – but this example illustrates the point well: one of the largest e-commerce platforms is outsourcing electronic payments.

Disadvantages white-label banking platform

Reputational risks

If a white-label product has flaws, consumers associate them with your brand. Updates, service and any problems – if the supplier has a problem with it, so do you. So make sure you are offered a sustainable solution and a reliable partnership.

Benefits are important, but trust is paramount. It is also worth finding out whether providers are willing to customise the product to suit your needs and provide timely assistance to you or your clients.

It’s not a unique solution

White-label products are designed for a wide audience of users, as vendors offer their solutions to numerous distributors, not just you. So be prepared to pay separately for additional functionality or customisation outside of the WL service package.

White-label solutions in online payments

In online payments, the white-label model has opened up a whole world of possibilities: companies can offer sophisticated payment solutions even without having large resources to design and build their own service.  The two main white-label solutions in this area are payment gateway and payment orchestration.

 

White-label payment gateway

So, the first product is a white-label payment gateway also known as a SaaS PSP, where SaaS stands for Software as a Service and PSP stands for Payment Service Provider. It is an off-the-shelf payment solution that businesses can implement to accept payments under their own brand or provide payment services. With SaaS PSP, a business gets all the tools it needs to accept payments on its own: a personal account for online merchants, a payment page, technical documentation, and an admin panel where its team can manage all merchant onboarding processes.

Along with this, to the whole PSP infrastructure is added the expert team that maintains it: the provider provides conscientious technical support and advises on any issues.

A white-label payment gateway is often chosen by PSP start-ups. As a rule, they already have their own contacts with acquiring banks and payment systems, but the team is small and the resource for developing services for merchants and payers is limited.

When these businesses connect a white-label PSP, they get a full-fledged payment service that includes:

  • merchant portal: a personal account where online merchants can work with payments;
  • payment page adapted for all screens and devices;
  • The documentation by which their clients will customise payment;
  • A user-friendly admin panel for your team to connect online sellers and manage their projects;

All services with which online sellers will work are designed in the corporate style of the WL-client and hosted on its domain. Therefore, neither partners nor payers guess that the business uses the WL platform.

Setting up and basic customisation of a SaaS PSP takes about two weeks. Meanwhile, developing a payment gateway from scratch takes about two years and costs at least $1.5-2 million.

White label banking platform – general information

White label is a solution that allows companies to use an off-the-shelf product or service developed by another company under their own brand.

Advantages of this solution

White label solutions for payment services are ready-made technology platforms provided to partners to support payment and money transfer processes. The advantages of such solutions are obvious:

  1. Reduced time for product development and launch. Companies can focus on promoting their brand and marketing campaigns.
  2. Cost savings. White label solutions are ready-to-use platforms.
  3. Flexibility of customisation and integration. White label platforms provide the ability to customise functionality to meet the specific needs of the partner. Partners can use APIs to integrate payment services into their software or website.
  4. Expanding the functionality of partner products. With white label solutions, partners have access to tools that can significantly improve and complement the functionality of their products. This allows them to compete with other companies on the market.
  5. Increased brand awareness. The brand partner uses white label solutions that have already proven themselves in the market, this increases recognition and enhances customer loyalty.

White label service is a great choice for companies that want to grow their online payments business as efficiently and quickly as possible.

What is white label personalisation and why it is more profitable than developing your own platform

White label personalisation is the process of customising and changing a standard interface to suit the unique needs of a particular business or brand. It can involve adjusting the logo, colour scheme, fonts, texts and other UI elements to create a unique and distinctive experience for users and customers.

Commissioning white label platform personalisation can be much more cost-effective than developing your own payments platform:

  • Firstly, developing your own platform requires significant time and financial costs, as it is necessary to create all the components of the platform from scratch: from design to testing and implementation. At the same time, personalisation of the white label platform allows to significantly reduce time and financial costs, as most of the components have already been created, and it remains only to adapt them to specific needs and brand them.
  • Secondly, personalising a white label platform allows for a significantly faster time to market, as an already existing platform allows you to get started as soon as you make the necessary changes and adaptations.
  • Thirdly, ordering platform customisation offers the opportunity to get the high quality and reliability of already tried and tested and well-established technologies.

White label platform personalisation is therefore a more cost-effective and faster way to build your own payments platform.

How it works and who it suits

A payment service that uses a white label solution provides its customers with a complete payment service under its own brand.

White label solutions for payment services can be useful for various companies and businesses that want to provide online payment services. They are great for startups and small companies that do not have their own infrastructure and the ability to build a payment system from scratch.

White label solutions can also be useful for large companies that want to expand their business and offer their services in new areas. For example, for banks that want to start providing online payments to their customers, but do not want to invest in developing their own payment system.

Advantages of white label banking platform

  • Ready-made payment aggregator to quickly launch your e-payment business.
  • Fully customise the solution to suit your brand and design.
  • Connection to various payment systems and banks.
  • Technical support and staff training.
  • Flexible payment terms.

Our payment aggregator is suitable for a variety of businesses including online shops, online services, mobile apps, fintech startups and more.

We guarantee reliability, security and high quality of our services. In addition, our pricing policy provides flexible tariff plans that depend on the volume of transactions. This allows our clients to reduce the cost of payment services. We provide training and support to ensure effective use of the platforms and guarantee their safety and security.

In conclusion, White label banking for payment services is a great option for those who want to develop their business in the field of electronic payments and do not want to develop their own payment service from scratch.

If you are interested in developing your payment service using this solution, leave an application on the website and our manager will contact you as soon as possible to discuss the details of cooperation. Don’t miss the opportunity to quickly launch your own payment service!

RUE customer support team

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CONTACT US

At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 661 75988
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Phone: +48 50 633 5087
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

Finwyn Consultancy LTD

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