Separating API from White Label

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.