The word “API” and “White label” are often used within the same breath in FinTech. They are used to describe a way in which companies can leverage a pre existing framework to more efficiently deploy an application. Really, they are two separate directions into the market, which we should understand more clearly. Both have advantages and limitations.
About API:
API (Application Programming Interface): is simply a list of commands (typical investment events) that follow a common format. It is used so that an individual program (e.g. P2P Lending or Wealth Management Platform) can communicate with another system directly (Payment processor) and use each other's functions. APIs can be leveraged to create full workflows and sets of commands that perform pre-set functions and meet needed requirements.
About White Label:
White label means there is no “label” and you can place your own branding and logo within the preexisting framework and integrations. White label websites are full stack monolith is design which makes them easy to start and work with.
White Label advantages are clear. One can easily replicate a single look, feel and function of a FinTech platform with minimal input. For some the speed to market by taking a pure off the shelf solution fits within their model. It’s advantages can also be its limitations. Changes in regulation, compliance or operational structure are not easily adjusted as you are using existing fixed workflows defined by the IT provider. Think of this as a car that is already built but you are painting it red.
Using the same analogy for API’s, you have all the parts of a car in front of you and they need to be put together. The API model advantages are it allows for flexibility around look, scalability and workflow. The “front-end” can look however the end client desires, code extensions can be added to accommodate complex calculations or simply adapt existing processes for expansion into a new market.
The “open endedness” of the API structure can also be its limitation. Users of this model need to understand their operations well, or be working towards mapping out their offline processes either internally or with help of a consultant.
Clients wanting to use the API method to enter the FinTech space, get in touch with Crowd Valley to leverage our ecosystem of consultants, experts, developers and industry leading Digital Back Office that bridge the gap into fintech.
About the author - Pete Woodard
Pete has worked within FinTech since 2013 across a broad range of security applications serving multiple verticals. He has scaled Google Venture backed startups in the AdTech space before joining Crowd Valley. Originally from Canada with a education background in Mechanical Engineering and Marketing. Pete has helped to open up new global markets in the digital investing and lending space. When not firmly rooted in the London FinTech scene he enjoys travelling, always mixing business with pleasure. He has spoken to over 1000 digital investing entrepreneurs, which makes him a valuable resource for trends in new security models.
Pete has worked within FinTech since 2013 across a broad range of security applications serving multiple verticals. He has scaled Google Venture backed startups in the AdTech space before joining Crowd Valley. Originally from Canada with a education background in Mechanical Engineering and Marketing. Pete has helped to open up new global markets in the digital investing and lending space. When not firmly rooted in the London FinTech scene he enjoys travelling, always mixing business with pleasure. He has spoken to over 1000 digital investing entrepreneurs, which makes him a valuable resource for trends in new security models.
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