What the Hell is White Label Banking? And What Is It Not?

Imagine running a fast-growing e-commerce business, and your customers are asking for more than just products—they want a full financial experience with your brand. They want branded checkouts, payment cards, or even a loyalty-driven debit card. But here’s the problem: you’re not a financial institution (FI). So how do you offer these services?

This is where white label banking comes in. It’s a shortcut that allows companies like yours to offer financial services without becoming a bank or regulated entity from scratch. By partnering with an existing licensed provider, you leverage its infrastructure, compliance, and technology to provide branded financial products, all while you focus on your core business.

But what exactly is white label banking, and what is it not? Let’s examine this concept and explore how it’s transforming businesses across the globe with real-world use cases.

What’s the Big Deal with White Label Banking?

Think of white label banking as a collaborative relationship between non-bank companies and licensed financial providers. You get to build a branded financial experience for your customers, while the heavy lifting—compliance, regulatory frameworks, and backend technology—is handled by the provider.

Imagine you’re a fast-moving fintech company. You want to roll out digital accounts, payment cards, or even crypto wallets under your brand. Instead of spending years building financial infrastructure, you team up with a Banking as a Service (BaaS) provider to launch in months.

Story: How Revolut Built Its Early Offerings

Take Revolut, the London-based fintech giant. When it first launched, it didn’t have a banking license. Instead, it offered services using the infrastructure of established financial entities through white label agreements. By partnering with Lloyds Bank and Barclays, Revolut was able to provide branded prepaid cards and currency exchange services while focusing on its unique value proposition—borderless money. It wasn’t until later that Revolut applied for its banking license and started building its own infrastructure.

How White Label Banking Really Works

White label banking relies heavily on BaaS providers. These platforms offer all the necessary banking functionalities through APIs (Application Programming Interfaces). Essentially, APIs connect your business to the financial services offered by the licensed partner, such as account creation, lending, payments, and even digital wallets.

Let’s say you want to launch your own branded payment card. Instead of reinventing the wheel, you integrate with a BaaS provider. The provider handles everything from card issuance to regulatory compliance, while your team focuses on marketing and customer experience.

Uber’s Journey into Financial Services

Uber is a perfect example of how a non-financial company has tapped into white label banking. In partnership with Green Dot, Uber launched Uber Money, a service offering digital wallets, debit cards, and the ability to track earnings in real-time. All of these services are branded under Uber, yet the heavy financial infrastructure and compliance are managed by Green Dot. 

Common Misconceptions About White Label Banking

There are a few myths floating around about white label banking that need to be addressed:

1. It operates outside regulations.
   False. Just like traditional banks, white label banking adheres to strict regulatory frameworks. In fact, the compliance burden is typically handled by the licensed financial institutions that provide the white label services.
   
   

2. It’s only for big corporations.
   Not true. Small and medium-sized businesses can also benefit from white label banking. Take Monzo, a UK-based challenger bank that started as a small fintech company using white label solutions to quickly launch digital accounts and prepaid cards.
   
   

3. You always need to partner with a traditional bank.
   False. You don’t have to work with a traditional bank to benefit from white label solutions. Many Electronic Money Institutions (EMIs) offer similar services like payment processing, debit cards, and digital wallets. Depending on your business needs, you can partner with an EMI or other licensed financial providers.

Shopify's Fintech Ambitions

Shopify wanted to help its merchants accept payments, offer loans, and manage cash flow. By partnering with Stripe and Cross River Bank, Shopify introduced Shopify Capital and Shopify Balance, providing financial services to its merchants under its own brand. While Shopify focuses on enhancing the merchant experience, the financial compliance and infrastructure are handled by its partner institutions.

White Label Banking vs. Traditional Banking: What’s the Difference?

In traditional banking, everything is managed under the bank’s brand and control—from technology to customer service. But with white label banking, branding control shifts to the non-bank business. You get to customize how the services look, feel, and interact with your customers, while the licensed financial provider takes care of regulatory and operational complexities.

The Role of BaaS Providers

BaaS providers like Intergiro, Solaris or Railsr are the key enablers of white label banking. They provide companies with the API connections to offer services like lending, payments, or card issuance, all while ensuring regulatory compliance.

Vivid Money and Solaris

Take Vivid Money, a German fintech startup that wanted to offer high-end financial services without building everything from the ground up. It partnered with Solaris, which provided the licensing, compliance, and back-end infrastructure needed to launch their own mobile banking app. Vivid Money was able to focus entirely on creating an intuitive and engaging user experience, while Solaris handled everything under the hood.

Future Trends in White Label Banking

The white label banking sector is growing rapidly, with the market expected to expand at a compound annual growth rate of 10.6% from 2021 to 2028. As embedded finance and open banking continue to evolve, white label banking will play a critical role in shaping the future of financial services.

More businesses—both large and small—are realizing that offering financial products under their own brand creates new revenue streams, builds customer loyalty, and sets them apart from the competition.

Final Thoughts

So, what the hell is white label banking? It’s a gateway for non-financial companies to offer comprehensive financial services under their brand without the hurdles of obtaining a banking license or building complex infrastructure. It’s the perfect solution for businesses looking to enter the world of finance swiftly and affordably while focusing on what matters most—their customers.

Whether you’re an e-commerce business looking to offer branded payment solutions or a fintech startup aiming to disrupt the market, white label banking provides the infrastructure, compliance, and agility you need to succeed.

Frequently Asked Questions (FAQs)

What is white label banking?
White label banking enables non-financial businesses to offer financial services under their brand using the infrastructure of established financial institutions. It allows companies to offer products such as savings accounts, loans, and payment cards without having to acquire their own banking license.

How do BaaS providers support white label banking?
BaaS providers like Intergiro, Solaris or Railsr deliver the backend technology, compliance, and infrastructure needed to launch financial products via APIs, allowing companies to brand and customize these services.

Can small businesses benefit from white label banking?
Yes! White label banking isn’t just for large corporations. Small businesses can leverage these services to offer customized financial products and quickly enter the financial services market.

What’s the future of white label banking?
As the demand for embedded finance grows, white label banking will become more widespread, allowing businesses of all sizes to offer tailored financial services without the burden of building or maintaining banking infrastructure.