Building and supporting trade finance software can be daunting, time-consuming and a strain on manual resources. The process can take years, and navigating the ever-changing payment and regulatory landscapes can add to the challenge.
Fortunately, financial institutions can leverage white label partnerships to provide their customers with the fintech they need without having to put up significant long-term investment. They can scale their business by drawing upon the resources of their partner.
What is a White Label Partnership?
A white label partnership is an agreement between two parties where one of them provides a product or service the other party can rebrand with their own company name and logo and offer it to their own customers.
White label partnerships are becoming increasingly popular across many industries, especially tech. They enable businesses to effectively respond to market dynamics, gain a competitive edge and maintain market leadership.
Below is a breakdown of the advantages for financial institutions in leveraging white label partnerships:
Increase Potential for Growth
Many businesses don’t have the infrastructure to scale and grow. Tapping into the technology and operations of white label partners allows financial institutions to expand their product offerings, appealing to a wider range of customers. By reaching new markets, financial institutions can boost revenue and scale their business. Further, financial institutions can more easily add new products as their customer base continues to grow without having to invest in additional infrastructure.
Avoid Unnecessary Costs
To expand upon product offerings, financial institutions would have to hire new staff or train existing staff. Engaging in a white label partnership enables financial institutions to avoid these costs and focus their financial resources on their core competencies.
Gain Access to Experts
Financial institutions can tap into the expertise of their white label partners who live and breathe trade finance software. Eliminating the time and money it takes to become proficient in the technology leaves financial institutions the ability to focus on their core competencies.
Partnering with LiquidX to Provide Customers an Industry-leading Solution
Financial institutions have long struggled with the sheer number of platforms to manage and each origination channel having different standards and formats. They’ve faced inefficiencies and costs that prevent them from scaling and growing. They’ve also struggled with historically paper-based asset classes bogged down by manual processes, leading to greater chances of risk.
In partnership with Broadridge Financial Solutions, LiquidX is the only fintech provider that can offer a complete solution connecting front-, middle- and back-office processes for financial institutions. LiquidX offers them a platform-agnostic solution, facilitating consolidation of data. Our outsourcing capabilities speed up the ability to scale and significantly cut the costs associated with growth.
LiquidX’s solution is powered by automation and digitization to mitigate risk of manual errors.
Case Study: Investment Management Firm Scaled Trade Finance Business Quickly Without Extensive Investments
An alternative credit manager (the “Manager”) with approximately $3 billion in assets under management and leveraged finance and trade finance solutions—such as receivable and supply chain finance—was looking to scale their trade finance business quickly and efficiently. They wanted to supplement their own origination programs with participation from third-party distribution programs, such as LiquidX.
The Manager and LiquidX, in alliance with Broadridge, began a white label partnership with a turnkey front-, middle- and back-office operation. Within 10 weeks, they achieved the following:
- Manager-branded platform managing origination and distribution programs for their corporate clients running working capital structures
- A platform-agnostic and comprehensive view of all trade finance programs and risk exposure, providing a holistic understanding of portfolio performance
- Ingestion of distributors’ invoice files in multiple disparate formats with flexibility to incorporate more
- Integration with the Manager’s financial institutions with wire payment capability
- Ingestion of remittance files
- Automated reconciliation of invoices
The LiquidX Partner Program
LiquidX’s white-label offering, the LiquidX Partner Program (LPP), enables financial institutions to use our technology, framework and settlement infrastructure to privately transact with your clients. Combined with our partner Broadridge, we empower your financial institution to provide working capital solutions to corporate clients in accounts receivable, supply chain finance and trade credit insurance in a single, intuitive interface.
Our trade finance software enables financial institutions to do more business, reduce costs and mitigate risk with true digitization. To learn more about the LPP, click here.
