White label digital bank: 5 advantages for your business
9 minutes reading
The current scenario is more than favorable for digital banks: Financial inclusion and digital payments are rising all around the world. The market is promising for companies looking to build their own financial services and products—a process which can be facilitated by a white-label digital banking platform.
Although the payments and banking advanced a lot in recent years, research Global Findex Database, released by the World Bank, revealed that there is still room for new ventures: currently, 150 million people in Latin America still make payments only in cash. There is, therefore, a great opportunity to banking to be explored in the region.
Also, major transformations have taken place in the past few years as new players joined the industry even if they were not originally from the financial universe. As well as fintechs, companies from different industries—such as retailers, carriers or manufacturers—have engaged their audiences by offering financial solutions.
The fact is that create your own digital bank can be profitable and strategic for projects of the most varied segments and sizes. And the way to do this in an agile way is through a white label digital banking platform.
In this article, we’ll show you it can be a seamless and, most importantly, advantageous choice for your business.
Understanding white label
As the term suggests, white label refers to a label in blank. In practical terms, it is an option for organizations looking to work on new market fronts, but without the effort, costs and time required to develop their own solution.
In the financial universe, white-label platforms enable banks and fintechs to go to market with their financial solutions through APIs. Those solutions are developed by a tech company such as Dock, which customs the final customer experience and brings the company’s look & feel to their customers. White label solutions allow a “as a service” financial universe.
What is a white-label digital bank?
A white-label digital bank is an application example of a white-label strategy. Therefore, it is a bank XNUMX% tailored featuring your company’s brand, which relies on a tech partner developing the entire infrastructure for financial services and products through APIs.
An example of a white label digital banking platform is the Banking da Dock, which allows any business or institution to offer financial services, contracting the technology in a “plug-and-play” format and only developing the front-end with its brand.
Through our global and modular API platform, you can offer a complete digital account for your customers, including all loan and banking operations, for instance:
- Paying bills
- Instant payments
- Making wire transfers
- Generating pay slips
- Making phone recharges and generating vouchers
- Making personal loans
- Having an interest-bearing account
Also, we take care of all regulatory and treasury issues, so that your business can focus on what’s most important: Capturing new users and improving your financial solution.
Want to see it in action? Check out some use case from different industries:
- Agribusiness;
- E-commerce;
- Fintechs;
- Telecommunications;
- Transporters
- Retail;
- Food Retail;
- Direct Sale.
5 advantages in using a white-label digital banking platform
Now that we’ve covered key concepts and definitions around the topic, it’s time to list the benefits a white-label digital banking solution can provide your business with.
1. Streamlining deployment and optimizing processes
When it comes to building a digital bank, the white-label model streamlines its deployment and represents low costs for developing products or services.
As we’ve seen, it is not necessary to have such a robust internal team nor allocate so many resources like infrastructure and equipment when adopting this type of platform. Processes are also optimized since part of the solution development is already finished, tested and validated.
Thus, go-to-market efforts are significantly reduced, which enables your business to consolidate faster.
2. Reducing operational costs and creating new sources of revenue
Companies that are not originally from the financial universe can optimize their financial management by relying on their own bank to make transactions, thus streamlining processes and reducing operational costs.
Also, they can create new sources of revenue by providing their customers with financial services.
A great example of this movement is presented by cosmetic products manufacturers operating in direct sales. By offering a digital bank for their sales representatives, they are able to make their payment operations more agile while also reducing costs, so that this important link between their brand and their customers can invest in increasing their sales numbers.
3. Expanding their portfolio and attracting new customers
By using a white-label digital banking platform, a company can also expand their portfolio in a more optimized manner, since a third-party is responsible for developing a variety of different products.
We can cite as an example the monitoring of the evolution agenda of the Pix in Brazil, which requires digital banks to launch new features in the shortest time after release by the Central Bank. By having a white label digital bank, development is accelerated and customers can start using the features in less time.
Another interesting case involves the financial solution portfolio, which can be easily expanded: A retail business already offering accounts, for instance, can easily engage their audience by offering new products, such as credit cards or loans.
4. Increasing customer loyalty
By expanding the range of services provided through a white-label digital bank and helping your customers access the financial world for different demands in their everyday lives, your business can also improve your customer relationship and increase your customer loyalty.
For instance, supermarkets and retail chains have a strong relationship with their consumers in many cities and communities. Those are people who already trust and turn to these businesses not only for shopping, but also for other types of services, such as paying slips, making phone recharges and more.
In those cases, adding one more point of contact (such as a digital account) builds trust in the relationship and brings more convenience to your customer’s life. After all, why would they have to go to a bank branch when they already visit their trusted point of sale every week?
5. Understanding a customer profile more deeply and staying ahead of the competition
We’re going through a moment where data is more valuable than ever for business. So, we need to recognize that it is also an asset for providing the best and most tailored financial services.
When using a white-label digital banking platform, your company, bank or fintech still holds all information on transactions, customer profiles, etc.
Based on it, your credit offering can become more intelligent, new features can be set and other services can further enhance the financial experience.
Need a white-label digital banking platform? Count on Dock!
We are the only platform that offers solutions for the entire payments ecosystem and banking and, in addition to our Banking, we also have white label solutions for Cards & Credit, Acquiring e Fraud Prevention.
By providing them, we look to unlock your full business potential so that you can achieve all your goals, making finances more streamlined and unattached.
Discover what moves us in our video manifest:
White-label digital bank: Takeaways from this article
- Digital banks represent a promising industry for companies looking to build their own banks, without the need to become a banking institution.
- Providing financial services and products is easier when using a white-label digital banking platform.
- A white-label digital bank is 100% tailored with your company’s look & feel. It generally relies on a tech partner developing the entire infrastructure for financial services and products.
- Having your own digital bank can be advantageous, for example, to pay employee salaries, market financial products and generate new revenue. As well as improving the relationship with the public and building customer loyalty.
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