What is Banking as a Service White-Label and What Benefits Does It Have?

When you start a business, you face typical troubles such as payment system construction, generating revenue, increasing brand awareness, and customer attraction.

Banking as a Service is a smart solution that can you to solve these problems,

achieve business goals and reach a new level of business development. Now let’s find out the way Banking as a Service works and its benefits for the business.

What is Banking as a Service?

Banking as a Service (or BaaS) is a solution for financial products and services that allows businesses to transfer money, track payments, and carry out transactions. It is a cloud-based model that provides the connection to the bank system via API to get the data. The main aim of its platform is a fast and effective payment service.

Banking as a Service is a platform that gives a license to banks to integrate online banking services straight into your business. Therefore, your non-bank service can offer the clients such as money transfers, payment services, loans, and debit cards.

You do not need to wait for the license and be able to get the benefits of using a BaaS without delay.

In regard to white-label services, it means that you use a ready-made solution with your label and design, so banking services are carried through the branded product of your business.

What opportunities Banking as a Service gives?

The functionality of BaaS meets the necessary needs of a small business such as accounting, client management and business flow automation. For example, the platform is a  reliable banking general ledger that gives a primary source for data management of all financial operations and info matching with the banks, third-party solutions, and business actants. AI/ML-oriented databases give more functionality for reporting and real-time financial analytics.

It helps with the integration of data analytics functionality on the top of the ledger layer. These opportunities can be useful for different types of businesses such as e-commerce platforms, retailers, healthcare providers, and other companies that deal with payment processing during business operations. They as well open up the following advantages for your business: revenue increasing, speeding up entering the market, and boosting brand awareness.

Benefits of integrating BaaS

According to the opportunities of this platform, your business will receive the advantages that can help you to distinguish between other companies on the market.

Banking as a Service gives many benefits to your business, however, we highlight 4 of them which are the most important for building a new business.

Increase revenue.

For example, Amazon was able to earn over $1 billion in 2019 through the integration of BaaS into consumer and merchant financing. Using BaaS gives you the ability to focus on customer and product experiences, while the developers team is responsible for building and implementing software for your business.

No need to get a banking license. Getting the license takes a long period of time and capital investment. Therefore, choosing a BaaS is a good solution to start your business in the short term without significant contribution.

Boost brand awareness. Every time when the clients use the card, they meet your brand. It increases brand awareness of your product and builds a long-term relationship with your customers by analyzing customers` behavior and understanding their needs. Also using white-labeling banking boosts retention and creates a positive attitude to your brand by creating a strong association with your product.

By optimizing your core banking operations with a Banking as a Service, you can get more revenue, improve the payment process, speed up entering the market and boost awareness of your brand.

The SDK.finance develops banking as a service white label that you can use to integrate the payment process into one system and collect the data out of them into one real-time database. The company designs BaaS which clients can integrate with mobile applications, e-commerce carts, and clients’ accounts.