Which Companies Benefit the Most From Becoming a Neobank?

A white-label digital bank has many viable use cases that benefit various businesses like credit unions, forex exchanges, and payment providers. With use cases including spend management, account aggregation, customized financial products, rewards systems, and the passwordless solutions that accompany each case, neobanks help financial institutions provide more robust services for their customers. 

With all its one-of-a-kind solutions, a digital banking platform can transform how each of the aforementioned institutions delivers services and attracts attention from underserved communities and demographics. Plus, they can monetize their respective customer bases and benefit financially from instituting neobanks into their framework. Here’s how these companies benefit from becoming a white-label digital bank. 

Credit Unions are Rapidly Joining the Neobank Framework

Credit unions have gradually been teaming up with neobanks to enjoy the benefits of a digital banking platform, including cheap and efficient financial services, vital accessibility for clients, and the ability to pool talent from across the world to provide clients with good services without geographical restrictions. 

Last fall, four reputed credit unions collaborated to launch a digital banking platform to serve low-to-moderate-income (LMI) customers to eradicate racial and economic disparities throughout the financial industry. Credit unions typically provide scaled services that are affordable and secure for lower-income makers. By turning to neobank solutions, they can provide more flexible services while creating more access (including bilingual services) and removing barriers to affordable service. Considering that the number of neobank users between June 2019 and 2021 jumped significantly, it’s wise for credit unions to establish a white-label neobank. 

Forex Exchanges Also Benefit From Going Digital

Neobanks have long been at the forefront of cross-border payments and foreign currencies. With a digital banking platform, forex exchanges can eliminate expensive remittance procedures and create more innovative cross-border solutions so people can exchange foreign currencies and send money to other countries hassle-free. With high cross-currency markups on international debit cards, usually up to 4%, and carrying cash not necessarily being the safest option, neobanks are providing a safe and cost-effective haven for forex exchanges to offer comprehensive services to their consumer bases. 

Neobanks eradicate high markups on currency exchanges and provide transparency on fee structures that are often lacking when dealing with foreign currency exchanges. They also eliminate formatting issues that typically occur between domestic and overseas banks. And, with a white-label digital bank, forex exchanges boost their degree of automation, improving the quality of their systems and their financial framework with technologically-enhanced solutions. 

By introducing a white-label neobank platform, forex exchanges can capitalize on using a virtual and plastic multicurrency debit card that’s fee-friendly and comes with no restrictions. For European entities, neobank adoption also allows them to create multicurrency IBAN/DACH accounts to conduct seamless exchanges at any time. 

Payment providers can leverage payment gateways so accept payments from people worldwide in different mechanisms and currencies, using updated digital technologies. And, payment remittance providers can makes money transfers, bill or invoice payments more seamless by using the blockchain technology that makes neobanks easy to use. 

How Other Financial Institutions, Industries and Communities Benefit From a White-Label Solution

A digital banking solution is very nuanced and ensures that various financial institutions benefit financially and infrastructure-wise from its technological advancements. 

By moving away from gradually outdated methods of traditional financial institutions, neobanks prevent customers from having to visit bank branches physically. This constitutes a massive convenience for communities and diasporas. Considering that some neobanks are also integrating social media features into their functionality, financial institutions can also widen their reach by serving people and areas they couldn’t previously reach. 

With a white-label neobank, traditional financial institutions like payment providers and microloan institutions can better serve their customers. Considering that a white-label neobank includes hundreds of payment gateways and a customizable interface, the institutions mentioned above can better provide personalized, customer-friendly services that allow them to win customers and financially capitalize on the increased customer base. 

Additionally, with a white-label digital bank, mobile telecommunications services can also take note of the customer experience benefits that neobanks provide. Neobanks pride themselves on being as customizable and agile as possible to enhance customer experience and improve marketing opportunities for institutions and enterprises. By focusing on customer support, providing quick navigation with their interfaces, and creating the ability to open accounts in minutes, neobanks create innovations that telecoms companies can use and replicate. Also, with the increased emphasis on technology, eliminating branches, providing operational transparency, and offering real-time spending notifications to customers, white-label neobanks have specific use cases that institutions outside of the financial sphere can wholly benefit from for the foreseeable future. 

Going forward, noebanks offer significant advantages that place various companies and enterprises in a more powerful position to serve their communities and diasporas without much overhead, optimizing costs for themselves while saving their customers considerable money. A white-label neobank is secure, has multiple capabilities that traditional institutions can’t provide, and will provide competitive advantages for them in the marketplace.

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Author Bio:

Serge Beck, CEO & Founder, Optherium Labs

Serge Beck is a serial entrepreneur, venture capitalist, IT specialist, and blockchain ambassador.

Serge has over ten years of experience on Wall Street and over ten years of experience as a venture capitalist.

Beck is the CEO and Founder of Optherium Labs, a global fintech company developing blockchain solutions to reform defective functions within financial and security infrastructure. He is driven by his belief that people deserve sounder, more secure financial services in our tech-driven world and is committed to eradicating current problems detrimental to end-user experience through the creation of synergized, decentralized products.

Earlier in his career, Beck was responsible for engineering some of the most critical and innovative technological infrastructure at premier financial institutions, including Bear Stearns, Republic National Bank, HSBC Bank and Merrill Lynch, where he revolutionized the way market participants could operate through advanced software development.