White label is banking that provides new users with high-quality technological financial services that improve the offer of other banking service providers, using alliances with Fintech companies that provide facilities for the rapid development of personalized platforms in order to offer their customers customers a more competent and efficient online banking. It is a concept that seems simple at first glance, but we often see that implementing new technologies does not always excite the banking sector very much, hence there are still banks that “fight” for the permanence of legacy technology, which leads to budgets for technological innovation, they are relegated to maintenance tasks for obsolete or uncompetitive platforms.
Traditional banking must inevitably adapt its system to the future; a good alternative is to form alliances in order to provide more efficient services to keep its customers satisfied. In the last decade we have seen that traditional banks’ partnerships with fintech (which offer white label solutions) have grown and expanded, which has allowed traditional banks to offer more competitive services. Next, we mention some central elements of “white label” banking to have a scalable service proposal that is sustainable over time:
Flexible platform and infrastructure
A “white label” service provider must be attentive to the permanent evolution of the service in order to be competitive and maintain good relationships with its customers, and it must also have an adequate technological infrastructure that fully adapts to the current needs of end customers. just as we mentioned in our previous article titled 5 Advantages of Banking Software.
For the customer to have a good experience in online banking, it is essential to have a friendly and intuitive platform that is easy to use for the end user, since it is useless to have an “advanced” platform but that users have problems to use it or it seems complex or difficult to use.
A quality service always has to be the north and the main objective of a white label bank, for which it is essential to have a service that works 24 hours a day and 7 days a week, in addition to having effective communication channels for you can have immediate feedback and provide all facilities to the end customer.
Support in the value chain
Banking as an online service must be like an end-to-end process that guarantees the complete completion of a financial service, meeting demand through the Internet, and managing within the reasonable time. In short, it is about moving from a traditional model, where the pieces seem like a “monolith” to a dynamic system that is based on microservices and accessible APIs, having the Internet as a vital tool.
Having support in the value chain means that in addition to being a platform that provides assistance to a partner bank, a “white label” service provider must have a wide range of services, including incorporation processes, that allow a rapid adoption by end users, as well as having a support of its online platform (front, middle and back office) which will allow the platform to be stable and not present failures.
What the future holds
The banking revolution still has a long way to go, in the coming years this trend will become increasingly evident and essential, which is why banks must gradually eliminate their bureaucratic barriers that prevent the implementation of new technologies and efficient processes.
What do you think about this topic? Do you know of any other characteristics of white label banking that you would like to mention?
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