White label banking

White label products are sold by retailers with their own branding and logo but the products themselves are manufactured by a third party. White labeling occurs when the manufacturer of an item uses the branding requested by the purchaser, or marketer, instead of its own.

The end product appears as though it has been produced by the purchaser. White label products are easily spotted on store shelves, as they have that retailer's own name commonly known as the "store brand" on the label—for example, Whole Foods Market's " Everyday Value" line of products. White label products are manufactured by a third party, not the company that sells it, or necessarily even markets it.

The advantage is that a single company does not need to do it all: one firm can concentrate on producing the product; another on marketing it; and another can focus on selling it, each according to its expertise and preference.

White Label Product

An advantage of private label brands is that they do not include specific marketing costs. Further, if a supermarket has an exclusive deal, then average transportation expenses could be lower and the company would benefit from distributional economies of scale.

Because of lower transport costs, the retailer could sell the product for less and reap a bigger profit margin. Private label brands have become increasingly popular, which suggests that consumers are becoming more sensitive to price and less loyal to their favorite traditional brands.

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Although technically, white label products may in appear in any industry or sector, large retailers have done quite well with them. In the United States, retailers were quick to follow Tesco's precedent. White labeling in the U. Private label branding is not limited to the supermarkets segment. Major electronics manufacturers of top-tier mobile phones and computers often put their brand names on cheaper-priced white label products to expand their offerings.

Banking as a Service and White Label Banking: when what's important is not the bank

White label products don't always need to be tangible items. Service offerings also have adopted white labeling. Some banks, for example, use white label services like credit card processing when they do not have these services in house. Furthermore, businesses that have no banking operations often extend branded credit cards to their customers, which also is a form of white labeling.

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For example, L. Bean Inc. A major benefit of white label branding is that it saves companies time, energy, and money in terms of marketing costs. Does this mean that Costco makes all of the Kirkland products you see on the shelves? Not at all.

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They simply contract with various producers that have agreed to put their products into the Kirkland packaging. A Kirkland-branded product often sits next to the national brand that actually makes the product on the shelf—identical products, different names, the national brand selling at a higher price.

Costco has further blurred the line between national brands and private labels by using premium offerings and co-branding strategies with the likes of Starbucks SBUXQuaker Oats, a subsidiary of PepsiCo, Inc. Interestingly, both consumer product and retail executives tend to believe that co-branding between retailers and traditional national brands is a win-win situation.

Small Business.T his past week I was introduced to a new bank that was just launched in the last few months called Simple. Their aim is to make banking smarter, more intuitive and more simple. This post is more about something that I saw when I was looking at the Simple FAQ page, a quick line at the bottom of the article that got my attention because I knew I had seen it elsewhere.

A few of the companies that use The Bancorp Bank as their banking partner You might recognize a few! As you can see there is quite the range of companies that use The Bancorp Bank as their banking partner, from prepaid debit cards to checking accounts and more.

At the time of writing, they have over private label affinity and partner programs nationwide. So The Bancorp Bank provides banking services for a huge range of financial products ranging from prepaid and debit cards to checking accounts like Simple. So just who are they? From their site:. The Bancorp, Inc. The Bancorp Bank is an FDIC-insured branchless commercial bank that delivers a full array of financial services and products both directly and through more than private-label affinity partner programs nationwide.

Our regional community bank division serves the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region. Today, Bancorp remains a leader as one of the few banks in the country dedicated to providing private-label banking and technology solutions for non-bank companies. In other words they provide the banking backend and expertise that non-banking companies need in order to start up their own bank, affinity program or private label bank brand.

Private-label affinity and partner programs can mean anything from banks like Simple, to pre-paid debit cards at your local university or via Suze Orman and a range of other things.

So how does a company that deals in private label banking make money? The same way other banks make money. Whenever someone uses a debit card to make a transaction, they make money for facilitating the payment. They make money from holding deposits and then lending out the money. They also make money from selling other services like wire transfers.

They make money from private label pre-paid cards, and unredeemed pre-paid cards. Basically they make money off of a wide range of normal everyday banking transactions. What does all this mean for you as a consumer? Not sure it really matters a whole lot for us as consumers, except that we need to know and realize that our deposits are going to the partner bank, and not to the other company we signed up with.

Make a smartphone deposit with Simple, your money goes to The Bancorp Bank. What are your thoughts on private label banking? Do you think having a company that engages in this practice frees up other enterprises to come up with more innovative banking products and concepts like Simple?

It can be important to examine why you're switching banks. Here are some great questions to ask yourself before you choose your next account.

You might be missing out on better rates or better customer service at another bank. It might be time to break up with you bank. Chime Bank is an interesting new banking option with an automatic savings and rewards program that makes saving money pain free.The transformation of the banking sector is an unstoppable process.

The provision of financial services is changing and becoming services and platforms which can host new channels, products, associations and opportunities. The well-known communication guru of financial technology companies fintechs Chris Skinner gives an example which makes it easy to understand the concept of BaaS by comparing it to Software as a Service SaaS.

These services used to cost you a fortune, but are now free or near enough.

white label banking

Businessman and cloud computing researcher Ulrich Scholten defines Banking as a Service as follows in the prestigious online publication Fintech Weekly : "End-to-end process, ensuring the comprehensive completion of a financial service, provided via the Internet on demand and managed within a specified timeframe.

It is about moving from the traditional model where the pieces are packages in a monolithical block to a dynamic system based on micro-services and APIs accessible through the internet. It's "APIficiation" of banking. Companies not necessarily banks which provide this type of Banking as a Service and White Label Banking services are often the ideal outlet for fintechs.

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They start as Neobanks and then become Challengers. For example, before getting a banking license, the German N26 operates in 17 eurozone countries including Spain used the white label Wirecard Bank to offer debit cards to its customers. BaaS is an "opportunity. Banks that manage to get involved and offer their services, not necessarily for free, in this new wave of digital services will gain more customers and become more competitive.

An example is his solution for taxis and public transportation: banks are offered a system whereby taxi drivers bank customers themselves can receive services from bank's customers or third parties and charge their fees through the bank's systems.

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It's always a win-win situation for the banks. Most fintechs are already using these technologies. Sectors such as microlending Vivus,Wongaetc. White Label Banking enables new companies to provide financial services which improve their offering by using products from a white label supplier, and Banking as a Service facilitates on-demand, fast and complete performance of these services.

These are two different albeit complementary strategies for banks and fintechs to grow and generate revenue. In the United Kingdom, Raisin, which compares more than 65 savings products, entered into a partnership with Starling Bank to use its APIs to open accounts for its customers, among other options.

Everybody wins.

With Starling Bank's BaaS servicescompanies including banks and financial firms as well as retailers and brands are able to develop and scale new customer products e. In Spain, Raisin kicked off its first partnership with the German N26 in N26 customers were able to arrange European deposits available through Raisin from the bank's app. Unnax is the first company of its kind in Spain," he stated.Create your own platform to enable customers to manage their finances in one place.

White Label PFM revolutionizes the way end-customers manage their finances and offers a degree view of their financial life. The solution provides advanced personal finance management tools to improve user experience and drive customer engagement to a whole new level.

Give them a reason to engage with your app on a daily basis, raise their trust by providing helpful notifications, and improve customer satisfaction with useful advice and insights to help them take their financial health to a higher level and keep it in check.

With the help of Salt Edge Data Aggregation API, your end-customers can link all their accounts, including those held in other banks, to your app.

Daily financial planning can be automated by implementing the flexible functionality of White Label PFM, which enables end-customers to easily manage financial budgets, schedule payment of bills, and more.

It will be easier for your customers to achieve their financial goals when they can track their progress. Get a first-hand experience with our global leading software to see the full range of opportunities that are unlocked for you and your company.

An aggregated view of all accounts With the help of Salt Edge Data Aggregation API, your end-customers can link all their accounts, including those held in other banks, to your app.

All types of accounts: current account, savings, checking, mortgage, loan, insurance, etc. Bank statement with transaction details Account holder information Notification alerts for balance thresholds Request a Demo Global Data Aggregation. Financial Planning Daily financial planning can be automated by implementing the flexible functionality of White Label PFM, which enables end-customers to easily manage financial budgets, schedule payment of bills, and more.

Saving Goals. Setting up a Saving Goal and tracking progress through a linked savings account Estimating how much time achieving goals will take Personalizing goals by adding categories and photos Getting notifications on goal progress Request a Demo. Payments via Open Banking Channels. Transfer funds between accounts Make instant payments Pay invoices Make national and international transfers Request money from a friend Open Banking Payment Gateway.

Job title. How did you hear about us? Which product are you interested in? Strong Customer Authentication Solution.Private labeling has long been a pervasive strategy in retail, where products are made by third party manufacturers and sold under a retailer's name. The cost to manufacture is often much lower than reselling another brand name, resulting in higher margins and increased revenue for sellers.

Smartly is one of Target's many white label brands Target. Retailers who implement this strategy also maintain wholesale control of the brand, including packaging and pricing, which generates product exclusivity as well as promotes customer recognition of and loyalty to the brand.

Possibly the biggest benefit of private labels, however, is that they eliminate the pains of having to design and build a new product — especially when entering a new market. By outsourcing the entire process and leaving those details to the experts, sellers can instead focus on what they excel at: branding and marketing the finished product. Because the benefits of this strategy are so multifaceted, it's no wonder private labeling is moving beyond consumer goods and gaining traction in service-based industries.

Businesses looking to develop new offerings and product functionalities can now easily outsource entire technology stacks and tedious regulatory administration.

White label banking is part of the open banking ecosystem Business Insider Intelligence. As tech giants like Apple, Amazon, and Google deepen their financial services plays, banking and personal finance tools have become a prime opportunity for fintechs and smaller firms to leverage private labeling to compete, and for established players to unlock new revenue streams. Here's a look inside how private labeling is transforming the banking industry— and which products are on the rise.

White label banking is another term for private label banking or banking-as-a-service BaaSin which banks open up their application program interfaces APIs to let third parties build their own financial products with existing infrastructure. White label banking accelerates the builder's go-to-market strategy by removing regulatory, legal, and technical obstacles.

White label banking services enable fintechs and third parties to showcase a sleek, company-branded frontend, while leveraging an established bank's license, regulatory compliance, and technology on the backend to offer core banking features that rival major institutions'.

Some examples of mobile banking apps built with white label features include:. Across industries, digital technologies are democratizing information to spur more competition and innovation. Because of this, the trend towards "open access" will only become more pervasive. In the banking industry, particularly, the open banking movement has been unfurling from its epicenter in the UK and stretching across the globe for the past few years.

White label banking and BaaS technology are no longer brand new technologies in the industry, but firms that get involved now will still be ahead of the curve by the time regulation becomes mainstream. The UK's Competition and Markets Authority has already enrolled the nine biggest banks and building societies in its Open Banking Directory, and others are coming soon. After that, it won't be long before other countries follow suit with their own regulations.

Incumbent banks around the world that invest in open banking platforms now — before it's mandated — will be rewarded with new revenue streams, an early boost in demand, partnerships with tech-savvy fintechs, and an overall competitive advantage against newcomers in the space.

To stay ahead of trends like white label banking, Business Insider Intelligence is launching a Banking coverage area in September. Tailored for top decision-makers in the financial services industry, this vertical covers digital transformation across the industry, including open banking and BaaS, consumer and business banking, mobile and online banking, digital account opening, and neobanks. Account icon An icon in the shape of a person's head and shoulders.A white-label product is a product or service produced by one company the producer that other companies the marketers rebrand to make it appear as if they had made it.

The name derives from the image of a white label on the packaging that can be filled in with the marketer's trade dress. Its origins can be traced to vinyl records.

This created a situation where certain respected or well-connected DJs would have exclusive copies of material, immediately increasing demand on certain big records. White label production is often used for mass-produced generic products including electronics, [4] consumer products and software packages [5] such as DVD players, televisions, and web applications. Some companies maintain a sub-brand for their goods, for example the same model of DVD player may be sold by Dixons as a Saisho and by Currys as a Matsuiwhich are brands exclusively used by those companies.

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Some websites use white labels to enable a successful brand to offer a service without having to invest in creating the technology and infrastructure itself. Many IT and modern marketing companies outsource or use white-label companies and services to provide specialist services without having to invest in developing their own product. Most supermarket store brand products are provided by companies that sell to multiple supermarkets, changing only the labels.

In addition, some manufacturers create low-cost generic brand labels with only the name of the product "Beer","Cola", etc. Richelieu Foodsfor example, is a private label food manufacturing company producing frozen pizza, salad dressing, sauces, marinades, condiments, and deli salads for other companies, including Hy-VeeAldiSave-A-LotSam's Club[7] Hannaford Brothers Co. Smaller banks sometimes outsource their credit card or check processing operations to larger banks, which issue and process the credit cards as white label cards, typically for a fee, allowing the smaller bank to brand the cards as their own without having to invest in the necessary infrastructure.

In Southern California, City National Bank is the largest check processor in that half of the state, because in addition to checks issued by its own customers, CNB processes checks for the customers of more than 60 smaller Southern California banks.

white label banking

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white label banking

Views Read Edit View history. By using this site, you agree to the Terms of Use and Privacy Policy. Look up white label in Wiktionary, the free dictionary.Based on our number of consumer checking accounts, we can go toe-to-toe in sheer numbers with some of the biggest banks in the country.

No minimum balance.

white label banking

No overdraft fees. Your very own bank, made to order. We work with large aggregators of consumers like T-Mobile to leverage their brands and existing workflows to acquire customers with very little expense. BankMobile's checking accounts carry fewer fees and partners can customize the experience and brand as their own. We collaborate with our partners to develop their own customer incentives and rewards. Get in touch with us Read the press release.

Everybody wins. Companies win in this model by:. Advantages 16 years experience delivering B2B2C white label banking. Proven adoption methodology. Modern digital banking experience with customer-centric platform. Superior access to low-cost services for customers. Scalable revenue model. Executive oversight. Fully-supported implementation. Dedicated relationship management. Administrator support. Automated program reporting.

Marketing support. Our special sauce Low Cost of Acquisition Less.

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