MicroSave's Senior Analyst, Shivshankar V. shares the benefits of white labelling and sends off a quick reminder to financial service providers on things to remember while white labelling mobile financial services.

White labelling is quite common in the financial services sector. Smaller banks sometimes outsource their credit card operations to larger banks. The larger bank issues and processes the credit cards as white label cards, typically for a fee, allowing the smaller bank to brand the cards as their own without having to invest in the necessary infrastructure. There are also white labelled ATMs where a third party sets up an independent ATM network which can facilitate cash withdrawals on behalf of multiple partner banks. Taking a leaf out of African countries, Canada and Europe, Reserve Bank of India recently permitted non-banking companies to set up and run ATMs for commercial banks. In mobile financial services sector, white labelling is becoming increasingly popular.