Invisible assistance: Why you should opt for white labels software solutions in fintech
Choosing solutions for fintech businesses is a fairly complex process, which involves cybersecurity issues, compliance with legal regulations, and customization to meet specific customer needs. However, it is possible to access a category of software products designed to relieve business owners of headaches and give them all the tools they need to cover their needs in a short period of time. We are talking about white label software solutions, which move the entire industry towards a more convenient and niche implementation of services. Let’s try and explore this matter, sometimes using examples of WL Global white label exchange solutions for cryptocurrency domain.
What is a white label solution?
In a generic sense, a white label is a type of partnership in which one company produces goods or services and another sells them under their brand. The concept of the white label was originally used in the American record industry. Back in the 1950s, manufacturers produced vinyl records without a label (that is, with a white label) so that retailers could put their company's name on them. Later on, the term moved to other industries and became widely used in e-commerce, manufacturing, software development, and finance technologies.
In IT, the white label concept is used for product development. This model was first used in 2001: an online cell phone sales service offered a rebranded version of its website to other companies. Now the concept of the white label has taken on a much broader meaning, including both software development and the delivery of a set of business services for rent. As a white label exchange and brokerage software provider, we would like to sort this out on the doorstep and avoid confusion. Let's take a quick look at both models.
White label (or turnkey) software
White label software is a category of turnkey products or solutions that are delivered to customers unbranded. Buyers brand the software as they wish (e.g., adding a branded color scheme and logos to the white label crypto exchange's client interfaces) and then provide access to the platform's functionality to end-users.
Speaking of fintech, the adoption of white label exchange or brokerage software is beneficial for all parties involved. The developer gets more customers for the product he has already created, and the business with a cost-effective turnkey cryptocurrency exchange solution, for instance, can offer their clients the requested services, and the end client benefits from software created by experienced developers.
White label services
A white label service provider takes on an entire business line, completely covering the range of services the reseller requires. The white label service helps clients with no experience to open entire divisions and perform labor-intensive tasks. This model can be compared to a rental business, where all that is required from the client is a financial investment and possibly the resources for marketing campaigns to advertise the new service line. A good example is a Forex brokerage white labeling, which essentially gives a client the license and puts the entire range of necessary resources, including the software component, into their hands.
Advantages of white label software solutions
Any fintech business facing the challenge of implementing a new service has two possible solutions — to fully develop the necessary technological framework independently or to purchase a white label product or solution from a vendor. We have discussed this dilemma in detail in another publication, but we think it is necessary to emphasize again some possible advantages that white label software solutions offer.
Reduced amount of initial investment. With the cost of in-house development staff eliminated, software solutions such as turnkey crypto exchanges and FX brokerages help save significant resources at the initial stage. Such savings are beneficial for any type of company, but especially for startups, which often have very limited budgets.
Minimized time-to-market. After the development stage, the software still needs to be tested and debugged, and these stages alone can easily take you an entire year. It's hard to imagine that in today's market environment someone can afford to wait that long to test a single business theory. In the case of using a turnkey software solution, the time to market can be limited to literally a couple of months, and some WL Globlal solutions allow you to launch in a few weeks.
Post-launch maintenance. Reliable white label software developers ensure support and updates of solutions and products after the launch on the client's platform. This removes the need for the customer to spend resources on the maintenance of purchased technology throughout the duration of the cooperation. For example, some users of turnkey crypto exchange by WL Global have been receiving continuous updates and support for years.
Who can benefit from white label software solutions
White label software solutions can cover different needs of fintech businesses.
Emerging projects that require a quick market entry
There are many young players in the cryptocurrency market who have their own vision of where the industry will develop, but they are unwilling to waste time and resources to develop their own white label crypto exchange software. It is for such projects that our solutions like White Label Crypto Exchange are created, which provide businesses with all necessary software tools in one package, depending on goals and objectives.
Businesses that need a replacement for an existing solution
The situation when an existing solution ceases to meet the needs of the business as it expands and grows is not uncommon. The problem is that in fintech, the transition to a new solution, even if it’s the best on the market, can be extremely painful and resource-consuming, and you need to find a provider that makes the process as seamless as possible.
Businesses that need to diversify their software tools to attract new clients
The field of financial technology is constantly evolving, and over time, thanks to new software instruments, categories of customers who previously could not be reached suddenly become quite accessible. In this case, white label software can come in handy and help quickly bring a new service to market, assuming that the business has the support of a reliable provider.
Four frequently asked questions
In our experience, customers who are considering purchasing a white label software solution are often concerned about these two issues. We will try to dispel the doubts associated with them.
“Why don't you provide the source code?”
— The reluctance of the developer company to provide the source code of the solution to the potential client, as a rule, has nothing to do with mistrust or a desire to hide possible architectural flaws. For a white label solution provider, the source code is usually a kind of trade secret and a guarantee that they can continue to sell the solution in a relevant market.
“If we don't have access to the source code, don't we lose control over all technical processes and the ability to modify the solution as per our needs?”
— Being able to control the technical component of your trading platform is not so much a privilege as a burden. Therefore, in order to relieve yourself of this burden and free up more resources for business development, you come to a reliable white label solution provider WL Global. You can discuss with your software vendor any possible changes and options for developing the technical foundation of your business, and the development team will bring them to life. In our opinion, this is a real privilege. For example, the WL Global dev team is always open to any suggestions that help improve our products and solutions. Our partner companies employ a sufficient number of specialists to ensure the implementation of valid requests from customers.
“How do I make sure you don't disappear and I don't stop getting support for the solution?”
— Checking a potential solution provider for reliability is not as difficult a procedure as it might seem at first glance. You can look at the time the company has already spent on the market, at the technology stack used, at the number of customers who use this provider's solutions and ask some price-related questions. All of this will add up to a fairly clear initial picture. You can also read our detailed guide on how to choose the best software vendor for your business.
“How do I differentiate myself from your other customers, since I know the terminals and other components within the same solution are identical?”
— Components of our white label solution are quite accessible for customization with designs developed by a customer. Even personalization options for mobile terminals can be discussed with a white label solution vendor who has sufficient resources. On the other hand, always remember that at the end of the day, it's always what's under the hood of the solution or product that counts. The UI component is certainly important, but the uninterrupted operation of the platform is critical, and it ends up having a much bigger effect on customer retention.
Final thoughts: white label model as the backbone of the domain
The white label model not only extends a helping hand to private customers but also contributes to the healthy development of the entire industry. Thanks to WL, companies qualitatively improve customer experience and services, fundamentally new solutions appear on the market, cross-industry cooperation develops, startups get access to reliable infrastructure and can develop their products, which, in turn, spurs competition in the market. In contrast to more traditional and sluggish models, white label solutions can solve customer problems quickly, cost-effectively, and point by point at the same time.
You can estimate the cost and choose the necessary features for our White Label Crypto Exchange solution right here.