In any industry where competition between organizations try to be on top, there’s no shortage of people trying to have the upper hand, and the fintech space is no different. While things such as creating a better user experience and cutting transaction costs are valid ways of going about it, it is great to consider using white-label fintech platform software solutions. White-label products across multiple industries are quite a common occurrence according to Kindgeek. So what exactly does it mean when it comes to fintech?
Well, buckle up, because that’s exactly what we’re going to get into. Not only will we look at what white labeling in this specific space is, but we’ll also check at why this path can be advantageous!
What these solutions entail
White-labeling in general is simply a business practice where an organization purchases products from another operation, which it then rebounds as its own for sale. If you’ve ever been to a supermarket and saw various products with their logo on them, these were most likely white-labeled. Among the many industries that have seen this practice are the following:
- Food and beverages
- Cosmetics
- Fitness and clothing accessories
- Phone Accessories
The growing fintech industry has a pretty outstanding growth. It actually was worth over a quarter of a billion dollars as of 2022, is naturally complex. After all, anything that’s digitizing finance is going to be, and this means that the software that has to be developed to not only provide success to you, but more importantly, great service to customers has to be built. As you would imagine, building these tools from scratch is no easy feat.
Main services
So if that’s not your expertise, you could still be a fintech company by buying software from a provider and then rebranding it. What you, as the company would buy from these providers is what’s known as a white-label fintech platform. Among the many financial services that are delivered to fintech companies by those creating the software include the following:
- Online payments
- Bank statement checking
- Taking personal loans
- Making deposits, and withdrawals
- Issuing of virtual cards
The terms
Behind the product’s creation and rebranding is the partnership that exists between the creator of the platform, and the one’s reselling it. Among the concerns people have with this type of partnership is that at first glance, it may not exactly lay out what either party gets out of it. If you have these concerns, and they descale you from going this route, look at the following to see what all of it means:
- The creation of the product is handled by the provider
- Rebranding is handled by you, without any trace of the developer’s fingerprints on the product
- Control in terms of pricing, marketing, and distribution is handled by you
- Interactions with customers are also controlled by you, who are in charge of the service, sales, support
- Both parties profit from the sales of the product, with the provider typically getting a fixed fraction of the revenue
While white-labeling fintech isn’t what you want, there are other methods of being a fintech company without creating the software. These include things such as outsourcing, and affiliate partnerships, which while different from white-labeling, have the same desired goal.
What the platforms have to be
For you to benefit from fintech white labeling, you have to make sure that the product you’ve bought can compete with the very best in as many ways as possible. If a white-label fintech program, for example, has features that don’t fit it or aren’t implemented with the best technology, being competitive is going to be a problem. Other areas of the platforms that should be up to par are as follows:
- Branding: this is the element that you take care of, and thus, it should stand out
- Security: as this is fintech, security is of utmost importance, which means taking every precaution, something that can be done by researching what your specific software needs to be safe, and seeking help to address it
- Customization: the people who have built the solution should do so in a way that makes it easy to change things to match the brand
The accompanying benefits
There’s a reason why even larger organizations that can afford to build from scratch are choosing to go about things this way. The first reason has already been hinted at, and that’s the cost of creating fintech from the ground up, which could be quite expensive. Having something ready-made, and only needs branding and customization on your part costs less.
Said customization is in itself, another benefit as the white-label fintech is typically built in a way that allows for modification on your part. With costs cut, and customization a possibility, the time spent on the entire project is shortened, which means that launching the product is done at a much faster pace than the alternative. This makes it so that you can put your product out there in the market before everyone else, putting you firmly in a position to benefit from the market.
Doing things in this white-label way also gives you access to professionals who know what they’re doing on several levels. Things such as regulatory compliance, security, as well as industry best practices aren’t what many want to focus on. With experts handling them, you not only focus on other areas but avoid all the inevitable issues that could arise should the things you don’t want to focus on aren’t tended to.
Final thoughts
After going through everything that has been discussed today, the one word that can be used to describe white labeling in the fintech space is convenient. If you use white-label fintech platform software solutions, not only do you save time, and costs, but you’re able to focus on other elements of your operation that will help grow it in the long run. For this to be the case, however, the people you’re partnering up with need to be of good quality.
If the solution delivered to you is no good, it is not going to give you an edge. So, as you consider white labeling, find a trustworthy provider who will offer quality platforms.
