Whitelabelling is the current catchphrase being thrown into every FinTech conversation – while many of us are now familiar with the term, we understand that you may still be getting to grips with it, and we want to help you better grasp the concept, and how it can benefit your business.
Though whitelabelling is thought to be beneficial to businesses, how can it boost your business and why is it more beneficial? More importantly, which factors of whitelabelling contribute to the success of your business, and how does it work?
What are whitelabel solutions?
Firstly, let’s examine what a whitelabel solution is. Whitelabelling is a service offered by some FinTech companies who have created solutions and tools which can be integrated into your API with your branding. This allows businesses to make use of the Fintech’s products, tools and services without having to dedicate resources to in-house development.
This is often used in e-commerce, banking, digital marketing, and similar businesses.
Whitelabelling can be simplified as per below:
- A third party creates a product or service.
- They on-sell their products or services to other businesses without branding.
- These businesses customise the products and services and add their branding to it.
- They on-sell their products and services to the public.
You might be wondering how this benefits the FinTech company? But because their products are being used under another brand, they don’t have to focus much on marketing. They can allocate their time to improving their products and services, and expanding their offerings.
In turn, the business that makes use of these products or services doesn’t have to focus on developing solutions. Instead, they can focus on marketing and upselling their products.
It’s a mutually beneficial business partnership.
What is a whitelabel platform?
As we now know, whitelabelling allows companies to add their branding to products and services that they purchase from FinTech companies.
But, what is a whitelabel platform?
A whitelabel platform is like an existing online application or online service that is already developed. It is sold as a whitelabel (blank) solution and the branding and customisations are added to the platform on a case by case basis.
Banking-as-a-Service (BaaS) and open banking are becoming increasingly popular, which means that FinTech companies enable businesses to integrate their products and services and provide financial services under their own branding.
This is a game changer for businesses as now they no longer have to build a financial platform from scratch, but can opt to use a whitelabelling solution and simply integrate it into their APIs (application program interface).
This is a cost-effective solution for any startup looking to enter the market. Accessing whitelabel solutions is far cheaper than hiring a team of developers to create a product that already exists. As in the case of offering financial services – many platforms already exist and can be easily acquired.
What factors contribute to the success of whitelabel FinTech projects?
While whitelabelling is on the upswing, not all whitelabelling solutions are successful. For a FinTech whitelabelling project to be successful there are some boxes that need to be checked before starting out. This can help you when deciding which whitelabelling product to make use of.
Make sure the solution is customisable . If the whitelablleing service cannot cater to your needs, that means that your clients’ needs will also be let down.
Different whitelabel services offer different features. It is important to choose one with the features that you will need to run your business successfully.
Ensure that the whitelabel product or service offers seamless and painless integration with your API. There is no place for bugs, particularly if you are in the financial sector and offer financial services.
An important element to consider when choosing your whitelabel service is to ensure they offer after sales support. Ensure your whitelabel service comes with a support system that allows you to easily navigate and solve problems.
When selecting your whitelabel service provider, make sure the cost of the service can easily fit into your budget. It only makes sense if it is more cost effective to use their service than building your own solution.
What are the primary benefits of a white label financial platform?
Many businesses make use of whitelabel solutions simply because it brings them many benefits. Here are some reasons why a whitelabel solution is beneficial to your business:
Making use of a whitelabel platform can save you both time and money. You can save money because you do not need to hire a team of developers to create your solution, and time, because you do not have to wait for the product to be completed by the developers (it is already existing and simply needs to be integrated with your API).
Whitelabel solutions also offer the convenience of starting your business quicker. This ties in with the time you will be saving on development, but ultimately means you can launch and get into the marketplace faster, transacting with customers and focusing on your core business as opposed to the back-end.
Making use of whitelabel solutions offers you quality assurance. This is because the product was developed by professionals, and has been tried and tested by other companies. This allows you peace of mind in knowing that the solution you are making use of has been tested extensively, rendering it a quality product.
Expands your offerings
Whitelabelling is a great way to set yourself apart from the competition. It allows you to expand your offerings in a short amount of time, while remaining cost-effective. Making use of ready-made products and services allows you to simply add your branding and focus on marketing.
Having a whitelabel partner can give you a competitive advantage in your field. At PayPugs we offer whitelabelling solutions for financial products and services. We offer a ready-made banking infrastructure to allow for your global expansion. Together we can create better payment experiences by allowing you to send and receive money via the fastest payment rails at the lowest fees and exchange rates. Book a call with one of our consultants and see what we have to offer.