Future Trend In Banking: Gold Labeling
by. Ron Shevlin
The practice of white-labeling — offering products developed by a third-party, but branded under the distributor’s name — is common in banking.
No, I’m not talking about this:
Although, come to think of it, that might be more common in banking than I realize.
PFM providers like Geezeo and Money Desktop “white label” their offerings through banks and credit unions. White-labeled mobile banking, P2P solutions and remote deposit capture capabilities are all commonly found in the world of banking.
The next few years will see the emergence of a new trend in banking: Gold-labeling. Banks and credit unions offering already branded products and services.
The popularity of white-labeling isn’t hard to understand. On one hand, it takes a fortune to create a nationally recognized consumer brand. And the other hand, most banks and credit unions are hard pressed to find the funds to develop new products, services, and technology solutions that are speculative in nature.
The PFM market is a great example. Geezeo and Wesabe both started life with the intention of becoming a direct-t0-consumer brand. Both ran into the brick wall called reality. Geezeo made the transition to white-labeling early enough, Wesabe didn’t.
continue reading »