What is White-Label?
Simply put, white-label means purchasing a standardised "solution". While you cannot change the core functionality — such as services, products and compliance management — you can change the brand logo and user interface.
In the fintech space, a white-label arrangement means a licensed company packages its licence permission, system infrastructure, back-office support and human resources into a solution and rents it to a third party. The third party can then provide relevant services under the licence, enjoying the licensed company's complete operating system without any build cost, allowing it to focus on its own brand development.
Benefits of White-Label
- Time savings — No need to prepare complex application materials or endure a lengthy approval process
- Cost savings — Applicants know upfront the exact cost of setting up a white-label company and subsequent operating fees, without developing independent IT infrastructure, website maintenance, legal counsel or recruiting licensed personnel
- Focus on business development — The white-label provider handles all mid- and back-end operations and compliance issues
- Stay current — The main licensed company already has a complete back-office system, reducing labour and time costs for updates
- Flexible agreement model — You can customise your own service pricing and fee structure, not bound by the main licensed company
White-Label vs. DIY Licence Application
White-label and DIY licence applications each have their merits. OuXin believes white-label is more suitable for start-ups looking to enter the fintech space rapidly — it helps businesses enter the market quickly and reduce costs. Regulatory authorities are also more receptive to this gradually-improving business model.
DIY licensing is better suited to companies with a clear brand and market plan, typically more complex organisations with greater brand uniqueness that can help them stand out in the fintech field.