White label digital bank: 8 advantages for your business

Published on Oct 11, 2022.

reading time 14 minutes reading

The timing could not be more opportune for digital banks: with financial inclusion on the rise and the advancement of digital payments There are countless opportunities around the world. In fact, the market is promising for companies that want to offer their own financial products and services – and using a white label digital banking platform can be the simplest and most efficient way to do this.

Despite significant advances in the payments sector and banking in recent years, there is a lot of room for growth. According to data from Development Bank of Latin America and the Caribbean (CAF), 41,67% of adults on the continent still did not have access to bank accounts in 2021. This highlights a great potential for bankarization to be explored, especially in Latin America.

Added to this is the fact that the market has undergone a major transformation in recent years, with the arrival of new players who are not originally from the financial world. In addition to fintech, companies from different sectors – such as Retailers, transporters or industries – have engaged their audiences by offering financial solutions.

The fact is that create your own digital bank can be profitable and strategic for businesses of all sizes and segments. And the way to do this quickly is through a white label digital banking platform.

In this article, we will show you why this can be a straightforward and, above all, advantageous option for your business.

 

Why Latin America is a promising market for digital banks

 

While Latin America still has a long way to go in terms of banking, the region has also stood out globally for its adoption of financial services online.

As research shows, YouGov Global Profiles, approximately 38,9% of Latin Americans with smartphones use banking apps several times a day, well above the global average of 23,5%. This growing engagement reflects a opportunity valuable for companies that want to enter this expanding market.

The region also leads in digital financial transactions, with 39,2% of consumers using their smartphones daily to pay bills. In addition, 62,6% look for ways to invest their money, demonstrating an increasingly disinterested target audiencepostto consume financial products.

With technologies such as white label and Banking as a Service (BaaS), companies can access this market more simply and with reduced costs, personalizing digital financial services. This opens up opportunities for different sectors, such as retail and transportation, to enter the financial market and offer competitive digital solutions.

 

Understanding the term “white label”

 

The term White label, literally translated as “white label”, refers to products or services developed by a company and offered to others so that they can be customized and marketed under the buyer's brand.

In the corporate context, this strategy is a practical alternative for organizations that wish to expand their areas of activity. without need invest all the time, resources and effort necessary to create a solution from scratch.

In the financial sector, white label platforms play a key role in enabling companies, banks and fintechs accelerate the development and launch of financial products.

This strategy becomes even more powerful when combined with the concept of Banking as a Service (BaaS), which provides the technological basis for these services to be integrated in a simple and efficient way.

 

White Label and Banking as a Service: the combination that transforms the financial sector

 

Through APIs (Application Programming Interfaces), white label platforms facilitate the integration of robust services, such as digital accounts, card issuance and payment management, in customized systems.

The difference is in flexibility and customization: solutions are tailored to reflect the visual identity and prospostthe brand value, ensuring a unique experience aligned with the expectations of end customers.

With the support of the model Banking as a Service, companies from any segment – ​​from retail to transportation and technology – can enter the financial market with competitive solutions, without the need to build complex infrastructures from scratch. This approach reduces costs, accelerates time-to-market and eliminates technical barriers, allowing companies of all sizes to expand their operations in the financial sector.

Platforms such as those provided by fintech companies such as Dock, offer a combination of operational security e flexibility. This enables organizations to focus on growth, engagement and innovation strategies, while delivering high-quality financial products to their customers in a hassle-free and efficient manner.

White label solutions allow for a financial universe “as a service”:

financial universe as a service

 

The concept of white label digital banking

 

The white label digital bank is an example of the application of the “white label” strategy. Therefore, it is a 100% customized bench with your company's brand and which has a technological partnership which develops the entire structure of financial products and services through APIs.

An example of a white label digital banking platform is the Banking da Dock, which allows any business or institution offering financial services, hiring technology in format plug-and-play and just developing the front-end with your brand.

Through our global and modular API platform, it is possible to offer your customers a complete digital account, with all banking operations and loans, including:

  • Bill payments;
  • Instant payments;
  • Transfers;
  • Invoice generation;
  • Recharges and vouchers;
  • Personal loans;
  • Remunerated accounts.

 

We also take care of all the regulatory part and treasury, allowing your business to focus on what’s most important: attracting new users and developing the financial solution.

Want to see it in action? Check out some use case from different industries:

 

Discover 8 advantages of using a white label digital banking platform

 

Now that we have covered the main concepts and definitions surrounding the subject, it is time to list the benefits of a white label digital banking platform can provide to your business.

 

1. Streamlining deployment and optimizing processes

From the point of view of creating a digital banking, the white label model speeds up implementation and represents a low cost for developing products or services.

As we have seen, by adopting this type of platform it is not necessary to have a robust internal team, as well as to commit so many resources to structure and equipment. Not to mention the process optimization, since part of the solution development is already ready, tested and validated.

 

2. Speed ​​in go-to-market

Since much of the solution is already developed, the time to market is significantly reduced. This allows the business to start operating and consolidate more quickly.

 

3. Reduce operating costs

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.

 

4. Generate new revenue

Offering personalized financial services to customers opens up opportunities to generate new revenue, diversifying the product portfolio.

 

A good example is cosmetics companies that operate with direct sales and offer a digital bank to their consultants, making payments faster and optimizing costs. This allows consultants to invest more in their operations, increasing sales and strengthening the bond with the brand. Discover a case study of an important company in the sector.

 

5. Increase the portfolio

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 relying on a white label digital bank, development is accelerated and customers can start using the features in less time.

Another interesting case is the easy increase in the portfolio of financial solutions: a retail company that already offers a digital account, for example, can easily engage its audience with other products such as credit card products or loans.

 

6. Attract and retain customers

By expanding the range of services offered through a white label digital bank and helping its customers access the financial universe for different day-to-day demands, the business also manages to improve the relationship with your audience and make them even more loyal.

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?

 

7. Get to know your audience’s profile better

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.

Using a white label digital banking platform allows your company, bank or fintech to maintain the control over data, such as transaction information and customer profiles.

This data is essential to better understand the public's behavior, identify their needs and offer more customized solutions.

 

8. Stay ahead of the competition

With access to quality data, your company can implement differentiated strategies, such as smarter credit offers or the creation of new features that align with customer expectations.

This not only improves financial experience of the user, but also positions your brand ahead of the competition in a dynamic and competitive market.

 

Need a white label digital banking platform? Count on us 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.

Our objective is unlock the full potential of your business so that they can be everything they want to be, making finances increasingly simple and without ties.

 

See how Dock supports your business in creating a digital bank

 

build your own digital bank with your brand and without bureaucracy. Discover white label solutions from Dock, and benefit from the expertise of those who have more than 75 million active accounts.

Banking

Leverage your core business and unlock your business potential by implementing financial services with our platform Banking.

  • Digital account: Offer features like a traditional bank, including a full digital account, cards and more, all customized with your brand.
  • Pix: take advantage of the scalability and security of Pix to offer to your customers means of payment instant and versatile.
  • Barcoded bills: provide convenience and security with a widely accepted and easy-to-use payment method, without the need for a bank account.
  • Voucher marketplace: Attract and retain customers with exclusive offers, creating strategic partnerships and expanding your brand's visibility.

 

Cards & Credit

Enjoy the most complete and robust platform Cards & Credit, which includes payment processing to create the best experiences with total flexibility, using the licenses of the Dock or your own licenses. Check out the possibilities:

 

  • Credit card: create your own credit card operation, white or (private-label, with exclusive design.
  • Multi-benefit card: Offer white label multi-balance cards to optimize employee benefits.
  • Global card: allow transactions in foreign currencies in a practical and convenient way.
  • Prepaid and debit card: build customer loyalty with prepaid cards, physical or virtual, for individuals or legal entities.
  • payroll card: credit card with invoice payment deducted directly from payroll.

 

Fraud Prevention

Provide a safe and reliable journey for all your customers. With innovative technology in prevention to fraude, Dock authenticates, detects and prevents risks in your operation. Count on features such as:

 

  • Biometric Authentication: The solution uses biometric technologies and facial features for identity authentication, ensuring security and an innovative experience.
  • Background Check : Simplify customer data validation with a single API, reinforcing security in the new customer acquisition process.
  • Auntfraudand transactional: improve transaction security by reducing false positives and improving the approval rate, with comprehensive protection and instant communication.
  • Multichannel Communication: use personalized and effective communication, via channels such as SMS, WhatsApp and email, to validate transactions, prevent fraudes and ensure safe interaction with customers.

 

Transform your business with white label solutions from Dock and create a personalized digital bank to boost your operation with security and innovation! Talk to our team!

 

White-label digital bank: Takeaways from this article

 

  • Digital banks represent a promising market for companies that want to create their own banks without necessarily becoming a banking institution.
  • Providing financial services and products is easier when using a white-label digital banking platform.
  • The white label digital bank is a bank that is 100% customized with your company's colors and brands and, most importantly, relies on a technological partnership that develops the entire structure of financial products and services.
  • Having your own digital bank can be advantageous for paying employees' salaries, marketing financial products and generate new revenue, as well as improve relationships with the public and build customer loyalty.

 

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