A Brief Guide to White Label Banking Solutions for FinTech


Trying to build a digital banking solution from scratch can be overwhelming. You need a lot of monetary and human resources to design and develop a secure FinTech app. This difficulty is more pronounced for companies doing it for the first time. To make things simpler, enter White Label software. 

This is the type of software a company purchases and brands as its own. An external service firm handles the development, while the buyer handles business development and marketing.

FinTech companies use White Label software to build a digital retail bank atop an existing bank’s framework. This situation is called White Label banking. We’ll dive into what it is and the benefits it brings. We’ll also give tips on selecting a suitable White Label banking software.

White Label Banking

A White Label bank is a financial service built atop a licensed bank’s APIs. Many FinTech companies use this format instead of building products from scratch on their own. It makes the technical aspects easier and frees time to focus on attracting customers.

Here is what happens with White Label banking:

  1. A bank opens up its framework using application program interfaces (APIs).
  2. A third party connects to those APIs to build their product.
  3. The third party brands the product and markets it as their own. Meanwhile, the bank’s backend is what powers everything.

This format saves you all the time, effort, and costs of developing a new technology stack. Instead, you take a ready-made system and customize it to fit your needs.

There are three core elements of White Label banking:

  1. The bank framework,
  2. The Banking as a Service provider,
  3. Your brand.

The Bank Framework

Traditional banks have established systems to meet customer demand and comply with regulations. Most of these systems have existed for a long time — tried and tested. To save yourself energy, you can build a solution atop the framework set in place.

The banking industry has an integrated network to share information between providers — Open banking. This system is what enables White Label banking to exist.

The Banking as a Service Provider

Say you’ve identified the bank whose framework you want to build on. You’ll need to get in touch to discuss integrations. But, banks often don’t entertain such talks from small-time customers. Even if they consider you, there’ll be many hoops to jump through.

To make things easier, enter Baas providers. These are software companies that build the Application Program Interfaces (APIs) for the banks. You can plug into the APIs to create your product instead of going to the bank for lengthy discussions.

Your Brand

The bank framework is ready. The APIs that connect you to the framework is good to go. You just need to build your product and label it with your unique brand. 

Examples of features you can include in your branded service:

  • Digital deposits/withdrawals,
  • Mortgage applications,
  • Insurance,
  • Payment processing,
  • Virtual debit/credit cards.

The crucial thing is knowing how to spread the word about your brand and attract users.

Businesses That Can Benefit from White Label Banking

The types of businesses that benefit most from White Label Banking include:


Online retail companies can boost their business by offering banking services. The type of people that shop online overwhelmingly embrace digital banking. Therefore, it’ll be easier to convert them into customers for online banking solutions.

To spice things up, online retailers can offer a lot of benefits tied to their banking services. For instance, they could include cashback or financing for customers that pay with their virtual cards.

Gig Economy

Gig economy services are those that match workers with available jobs from a pool of consumers. It could be food and grocery delivery, handiwork, caretaking, pet walking, etc.

As a gig platform grows, one way to retain customers is by offering virtual card solutions. With these cards, people earning via the platform can transact and receive money in short periods. Offering such a service is bound to increase loyalty from the user base.

Neo Banks

Neo banks are banks that operate exclusively online without traditional physical branches. If you’re starting a neo bank to offer mobile banking, it’s easier to take an existing white label platform and brand it than build a new one. This way, you can focus less on product development and more on luring customers and building a solid business. 

Neo banks represent the primary use case for White Label Banking services. The industry is growing, expected to reach $394 billion by 2026. With that figure, it should be obvious that White Label Banking is also poised for huge growth. 

Benefits of White Label Banking

White Label banking solutions confer many benefits, mainly for little startups. They include:

Cost Savings

Building a new technology stack for a banking solution is expensive. You need to pay experienced developers, and they don’t come cheap. You need a lot of computing resources, e.g., cloud storage. A banking license is also necessary.

With a White Label solution, you avoid a lot of these costs. The bank has done most of the work for you, and the APIs let you plug into their systems. 

This benefit favors small startups that have limited cash. They can build new products for a low cost and market them to create a sustainable business.

Streamlined Focus

White Label solutions eliminate the need to dwell on the technical aspects of a product. It frees more time to focus on branding, business development, and marketing.

Business Growth

It’s not only startups that use White Label banking solutions. Established businesses that want to acquire a new revenue stream can decide to enter the FinTech market. For example, American retailer Walmart provides checking accounts and debit cards.

Offering extra services is a proven way to keep customers attached to a brand and make them spend more money. 

Fosters Competition

The FinTech market is very competitive, and White Label solutions play a crucial role. Multiple firms can brand the same White Label banking software yet charge different prices. The competition leads to lower costs as they reduce prices to lure customers.

Considerations for Choosing White Label Banking Software

There are many White Label solutions ranging from good to bad. There are essential things to consider to pick a good one, including:


Ensure you pick a White Label provider with the necessary licenses and certifications to operate where your target customers are. 

Selecting a U.S. banking provider that doesn’t have GDPR compliance will prevent you from operating in Europe. Likewise, any electronic payment system in Europe must be PSD2 compliant.


You’ll be dealing with customer funds, so security is paramount. Study and understand the security features of your preferred White Label provider. 

Regulators have security standards that banking services must meet. You should include the list of regulations and ensure the White Label provider complies with them. If not, find another one.


White Label providers offer different methods of integrating their technology stack. Look for a provider whose integration process is as automated as possible. Manual customizations may be necessary, but they consume a lot of time and effort.

Support and Maintenance

The journey with your White Label provider doesn’t end after building the product. You may later run into problems that require contacting the provider for help, so choose one that offers regular support and maintenance. They’ll likely charge for this privilege, but it’s worth it in the long run.

The good thing is that Satchel meets these requirements. You can use our White Label software to issue branded physical and virtual cards. 

The Essence of White Label Banking

In the old days, people had to go to a physical branch to interact with banks. Technology swooped in to make things easier. You can now interact with banking services online from anywhere. Mobile banking has exploded in the 21st century.

White Label banking has made it easy for businesses to build FinTech products. Companies that take advantage of it can develop products faster and capture market share from legacy banks.

This growth is likely just the beginning. White Label banking is poised to become the foundation of our financial future, so why not come aboard?


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