“White label” banking is one that provides its customers or users with high-quality technology, financial services, thus improving the offer of other entities that provide the same financial services. To meet this objective, banking and financial institutions make use of alliances with Fintech companies, which are requested for their flexibility and speed in the development of new technological platforms, which provide clients with fast and effective solutions, becoming more efficient and competitive companies. Below we will share some characteristics of “soft brand” banking.
Flexible infrastructure and platform
A “white label” service provider must have a flexible platform and infrastructure that allows the service they provide to improve and evolve (continuously) to be competitive and maintain good relationships with its customers. This type of platform is cheaper and easier to implement, which avoids incidents that occur with its own platforms, which tend to be more expensive and less flexible.
Advanced security systems
Any banking platform or software can have vulnerabilities or suffer attacks, so it is important to have high-security standards; for example, it is recommended that the Fintech that provides this service has experience protecting against external attacks and using the latest generation tools in the field of security.
This characteristic allows us to respond to business opportunities and customer needs in a profitable, efficient, and timely manner; each financial and banking institution has different characteristics, which must be understood and understood to anticipate any type of need that may arise in the process.
Support in the value chain
Providing a branded platform helps the partner bank improve its own customer experience and maintain good customer relationships. The white-label service provider must provide a full range of services, including onboarding processes, which will allow rapid adoption by end-users.
In this evolution, the bank decides to acquire services from a Fintech, allowing it to operate with a certain independence. For its part, the bank obtains valuable information about the market that helps it develop additional solutions and has the exclusivity and control of the services developed by Fintech.
Payroll payment system
In addition to traditional payments (which are already a standard in the market), other areas such as payroll payments have a great boom and popularity. Financial payroll technology is a battle to move up the deposit and payment value chain. As we saw in our previous article entitled Trends in Fintech in payments, “pro-payroll” Fintech companies offer banks and companies various solutions to make group payments effectively and flexibly.
Freedom for the end user to decide
Service providers propose new functionalities and share them with their clients, forming an ecosystem that integrates all actors to allow the end consumer to make the best decision for their financial needs. The user has an interface through a platform created by a “white label” bank that allows access to high-quality financial services.
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