If you’re a FinTech and want to diversify your offerings (while maintaining complete brand control) you have two options: develop a solution yourself, or white label it.
While opting to build from scratch might be reasonable for some, the benefits of white labeling often outweigh the investments required for in-house development. Unsure if a white labeled solution will suit your business? Consider the following.
White labeling refers to a fully supported product or service that’s made by one company but sold by another. Opposite of co-branding, where a product integration would require two companies to share the spotlight, white-label products are acquired without branding.
This means the brand that assumes the white-labeled product saves time and money that would have been spent developing a comparable product in-house, without sacrificing their brand ownership of the new solution. Instead, the business can focus energies on scaling and maximizing overall revenue from the purchase.
If the answer is yes, it might seem simple enough to opt for centralized development. After all, you know and trust your own team, and you’ll be able to keep close tabs on ground-level customizations.
Even so, there could still be benefits to white labeling.
If you’re working under a short deadline—maybe you need the launch of this product/service to get you out of a profit jam, or it will align with a slim marketing window for your target consumers—white labeling has the benefit of expediency.
Especially in the case of SaaS products or other software embeds, development is a lot of trial and error that could be streamlined if you choose a prepackaged solution. Cutting to the chase will also save the resources needed to pay for that trial and error.
Ask yourself the same for the white-label solution. If this cost estimate seems much lower than what you would have to allocate in-house (in most cases, it probably is), then you might consider setting up a few meetings.
Research whether the capital solution you envision is already on the market and available as a white label. You might have to do some digging to find the service that fits your needs, especially in the case of complex technologies, CaaS, or SaaS solutions. While outsourcing will always have the benefit of a niche-expert eye, keep weighing the cost of the venture against the potential profits.
Many business owners will jump on in-house development simply because they get hung up on the nitty-gritty specifics of what they want the end product to look like and fail to see the potential in the services available to them.
White-labeled solutions may come with software development kits (SDKs) that will provide you with the tools to customize the offering for branding and functionality requirements. Keep an open mind when you take to the white-label market.
Here at Yardline, we developed a first-of-its-kind Capital as a Service (CaaS) white-label solution that’s taking seller resource platforms to new heights they would have had to scale for years to reach on their own. When you partner with Yardline, you leapfrog the pain points and simply reap the rewards of our expert-designed tech and capital resources.