To select a white label digital banking platform is not a trivial task. Not only because the market of white label banking platforms is very fragmented with lots of providers, but also due to the lack of information on which provider operates in which country. In addition the market trends are changing rapidly and new solutions come into play every day, making it difficult to keep up to date.
Besides, the reason for choosing a white label banking platform is quite particular, as this decision has far reaching consequences and needs to be taken with careful consideration. This is not only because of hidden costs or integration issues, but mostly because of performance and security concerns, which might influence customer acquisition and retention rates significantly.
Many clients engage with a single white label banking platform since they don't have the resources, knowledge or skill sets to develop their own in-house offering. The choice of a specific provider is mostly based on the quality of technical documentation and business references available on their website. However there are many other factors that need to be taken into account when selecting a white label digital banking platform.
In this article we have listed these factors and given you some guidance on how to select the best-suited white label banking platform for your bank or financial institution. The decision which provider to choose might impact not only your business growth but also the long term sustainability of your company, so please take your time and consider all the points below carefully.
1. What is a white label platform?
A white label solution or white label banking platform makes it possible for banks to rebrand third-party platforms as their own offering, without modifications. In most cases clients only see the bank's logo on the login screen of the system, while all other features are available in their original layout.
Many providers offer white label banking platforms to start with, which allows banks to focus on branding, marketing and UX/UI design while minimizing development efforts. This is especially convenient for small financial institutions that have limited resources or skill sets in technical application development. However this might also serve larger companies who are looking to launch their product at a fraction of the time it would take them to build an in-house offering.
2. What are the benefits of white labelling your digital banking platform?
There are several reasons why banks choose to white label third party platforms, but mostly it boils down to these 4 factors: cost efficiency, speed to market, security and regulatory compliance.
Cost efficiency: Most of the digital banking platform providers offer white label solutions that allow banks to rebrand their system, while only having to tailor some front-end components on top of the original software. This saves you not only time but also money in development costs, while still allowing full customizations and branding on the front-end.
Speed to market: Banks might need a digital banking platform as soon as possible, and often turn to white label providers for fast track solutions. By choosing a rebranded platform your bank can be live within weeks instead of months, which allows you to launch new products or service without spending valuable time in development.
Security: This is not directly related to the white label model, but represents a major concern that needs to be taken into consideration when selecting your bank's digital platform. In recent years security breaches were exposed in many banking applications which consisted in the theft of several million euros from client accounts. Most often these incidents happened because providers did not pay enough attention to security and privacy issues when designing their systems.
Regulatory compliance: The customer data protection directive (or GPDR in Europe) requires financial institutions to use a third-party provider for digital services whenever possible, instead of building and maintaining custom systems. This is one of the reasons why white label platforms are gaining popularity in the industry. Using third parties means that you are sharing responsibility for data protection, protecting your customers from potential violations of GDPR.
3. What factors should I consider when choosing a white label digital banking platform?
With all the major providers and hundreds of small companies offering these solutions it is easy to be overwhelmed by the sheer amount of white label providers available. However, there are few factors that matter the most when selecting the best-fit platform for your company.
Quality of development: This point should be at the top of your list when evaluating different white label products. You should always make sure to inspect the source code before you sign a contract with any provider, as this is what will determine the performance, scalability and security of your platform. The code also represents what you are getting in terms of backend functionality, so make sure to pick one with modern architectures that can help improve speed, stability and security.
Design: This is by far the most important factor when choosing a provider because clients will judge your application almost solely on this. The UI and UX of your platform will make the first impression with your users and therefore it is essential to invest in a white label platform that can provide you with modern, clean and user friendly front-end components.
Flexibility: For your digital banking solution to succeed, it should be able to offer tools that help you generate new revenue streams. The platform should be open and customizable, allowing you to integrate with a wide range of third party services that facilitate your business. Some providers even allow white labeling for their mobile apps which can increase brand awareness and provide users with a unified experience.
Integrations: It is important to consider from the start what kind of integrations you need for your platform. Modern white label solutions include a range of APIs that connect to third party services, which can offer additional functionalities according to your needs and business goals. This includes social media login, customer profiling, single sign on and other types of integrations.
Support: Choosing a provider based only on the cost of the platform is not a smart business decision. You should also typically look for a company that provides reliable customer care and technical support, as you will be able to get all your questions answered quickly and efficiently when issues arise.