Facing increased competition, companies are trying to stand out and stay in the game.
Some of them decided to use the White Label commercial technique allowing them to benefit from a product or service, without having to mention the brand.
The term White Label has been used for many years and in many sectors: IT, retail, insurance, etc.
Approved establishments in the banking and payment services sector offer non-bank players the opportunity for them to present solutions from the world of financial and payment services to their own customers, without mentioning their service provider. This is called “Banking as a Service” (BaaS).

I- Focus on the Concept of Banking as a Service

A- Origin and Definition of the Concept

The term “Banking as a Service” (BaaS), comes from the computer software and the “Software as a Service” (Saas) mode.

Obtaining a banking license, which is a highly regulated business, is often a long, difficult and complicated procedure. The BaaS concept allows non-banking players to offer financial services directly to their customers.

Through APIs (Application Programming Interfaces), the approved institution sets up a secure communication system with the non-banking company. The functionalities offered are integrated into the customer journey and grant him direct access to financial or payment services via the website or application of the non-banking goods or services supplier.

This process therefore allows companies in any sector of activity to offer a range of additional services to their customers such as mobile bank accounts, debit cards, loans and payment services, without having their own bank license.

These products or services are also customizable. For example, the colours of a bank card can be chosen according to the graphic charter of the company that offers it and even a logo can be affixed to it...

B- The Role of Approved Establishments Acting as Service Providers

First, the accredited institution listens and advises then produces an estimate and a schedule according to the solution needed by the client company.

Second, the accredited institution contributes its expertise. It makes its technology available and offers tailor-made solutions. The product or service can be personalized in the colours of the client non-banking company.

Thirdly, the approved establishment takes care of the technical part, especially at the development level. It can also support software maintenance and update.

With such a White Label system, the non-bank client company will be able to use the solution of the approved service provider under its own brand, without needing to mention it.

Here are some examples of companies offering their solutions in the White Label mode.

• Expedia Private Label offers its solution and its White Label content to business partners, which will allow them to sell all Expedia products under their own brand, with a 100% customizable site. For example, by using Expedia Private Label as a white label, the Ryanair airline can present hotel nights to its customers in addition to its flight offer.
• Onlinetravel offers its services for the creation of online travel agencies, including the configuration of a customizable site (colour, logo, widget) and access to a large product portfolio (hotels, airlines, destinations).
• Mangopay offers its functionalities in white label, such as the integration of a customizable payment page on a web or mobile application.
• The Olkypay payment institution can support companies that so wish in issuing and personalizing their private bank cards to their employees and/or their end customers.
• Olkypay also offers exchange platforms a White Label offer allowing them to provide payment accounts to their customers that can be used for inflows and outflows of funds in the context of conversions between euros and cryptocurrencies.

II - A Win-Win Model

Today, the outsourcing of services is developing more and more in Europe. Some companies use service providers or manufacturers to outsource part of their business. They then use, among other things, White Label services and techniques.

This commercial technique has several advantages.

A- Benefits for Service Providers

Offering their services as a White Label allows financial services or payment institutions to expand their customer portfolio.

One of the feedbacks is that satisfied customers tend to recommend said products and services to those around them. Word of mouth is once again becoming, directly or via social networks, a means of getting known.

B- Advantages for Non-Banking Companies

Adding financial and/or payment services to its basic services makes it possible for a company to expand its service offer without technical or regulatory constraints.

Using a service provider providing a proven and already operational solution limits risks.

Having a payment solution in the image of your company (logo, colour, etc.) that incorporates the supplier's know-how is a fast, efficient and inexpensive solution.

In summary, the concept of “Banking as a Service” (BaaS) refers to a commercial technique allowing non-banking companies to benefit from a financial product or service, without having to mention the brand that developed the solution, thus freeing them from certain constraints.

The White Label outsourcing for the provision of an extra service makes it possible to integrate it at a lower cost into an existing offer, either to meet a customer’s need or to create one.

To find out more about solutions offered by the Olkypay payment institution, please visit this page.