Fast developing technology and evolving consumer behavior are forcing organizations to innovate in their products and offerings to drive significant efficiency gain and consumer value. Like all retailers financial services institutions too are eager to enhance their services through novel and customized offerings and upgrading to the latest in technology. They are making efforts to customize according to customer demand regardless of the size of the market.
White labeling can be broadly defined to include arrangements where a product or service is offered under the brand of one company (the distributor) while a separate company (the provider) actually makes the product and/or provides the service. These are called white label products. White labeling allows producers access to a wider market than they would otherwise reach, and helps distributors to offer a wider range of branded products or services.
Advantages of White Labeling
The economic climate is in constant flux due to regulatory and other changes. Banking, brokering and other retail financial institutions are witnessing increased activity. White labeling offers a relatively fast and cost-effective alternative for financial institutions to benefit from this growth, without having to invest a considerable amount of time, money and effort into developing their own solution.
Time: White labeling can help financial institutions to reduce the time to introduce a new product or product range.
Effort: Organizations can widen the variety of products or services they offer without large operational inputs, even if the Provider Banks do not have the necessary knowledge required.
Cost: Reduced time to market and reduced requirement of infrastructure and operations to formulate and introduce new products in turn will reduce cost.