Launching a mobile app with embedded finance is a game-changer for any bank and fintech business. But the path to getting there can be complex and expensive. This podcast episode cuts through the noise, exploring the two primary routes to mobile app development: in-house and white-label. We'll break down the advantages and disadvantages of each, focusing on cost, time to market, and strategic considerations like IP ownership and scalability. Tune in to learn how to choose the best approach for your specific needs and maximize your chances of app success.
All right, welcome back everyone. Today we're going to be diving into this whole world of building financial apps. It's a challenge, right? Every bank, every fintech wants to have that app that really, you know, wow is their customers, makes their lives easier. But how do you actually get there? And we've got some research here that's pretty interesting. It actually breaks down kind of the two big paths, you know, in-house development, building yourself, or taking that white label route.
And let me tell you the cost comparisons here. Oh, yeah. And the potential pitfalls are pretty wild. Some things I don't think people really think about.
Yeah, a lot of hidden things that can really trip you up. Yeah, totally. Yeah. So to help us navigate all of this, we've got a fintech expert from Verestro, a company that's, you know, making some serious ways in the white label app phase.
Thank you. Thanks for joining us. Glad to be here. Okay, so let's unpack this.
Let's say, you know, you're a banker of fintech and you get this killer app idea. Yeah. And the surface, building it in-house. I mean, that sounds pretty tempting.
Yeah. Right. Yeah. You hire a team of, you know, amazing developers.
You have total control. Every little detail. That's it's the dream. It's the dream.
But our research is throwing up some, some pretty big reality checks. Mm-hmm. What are some of the things that people often underestimate about going in-house? Oh, so many. I think about timelines.
Okay. Oh, we'll just, we'll whip up an app in a couple of months, no problem. Right, right. That's just not reality.
Our research is showing, I mean, most in-house projects, you're looking at 12 to 24 months, at least. Wow. Easily. And then there's the cost.
Yeah, the cost. Yeah. Everyone wants to know about the cost. Yeah, even a small team, you know, you need a project manager, UX designer, a couple iOS and Android developers, someone for the backend.
You're looking at at least 36,000 euros a month, minimum. Whoa. Yeah. Okay, yeah, that's a, that's a number that makes you stop and think.
Right. And that's not even, we haven't even talked about maintenance yet, right? Ongoing maintenance, servers, security updates, all that stuff. All of that. It's starting to feel less like a dream and more like a big commitment.
A very serious financial commitment. Absolutely. Yeah. Okay, so that explains why our research talks about these technical compromises.
Right. Even if you have the budget, if you're a smaller team, you're forced to make some tough choices. What kind of choices are we talking about? What are these trade-offs? Well, think about the classic one. Okay.
Native app versus hybrid app. Right, right. A native app built specifically for each platform. So iOS and Android, you get the best performance, the best user experience, but you're essentially building two separate apps.
Oh, so your cost just exploded? Yeah, it can get really expensive. Okay. Hybrid app, on the other hand, one code base works across platforms faster and cheaper to develop. But maybe not as slick, maybe not as performant.
Yeah. And for a financial app, I mean, think about it. User trust is everything. That's a seamless experience.
You don't want a laggy app. You don't want it crashing all the time. That can really make or break you, I think. Absolutely.
And this is where choosing the right development path is critical, especially for those of you working with a limited runway. Yeah. Yeah, for sure. Okay.
So we've painted a pretty intense picture here of the in-house route, but it's not all doom and gloom. Our research does point out a big plus, total freedom. Oh, yeah. Right.
You have that control. If you've got a truly unique vision and the resources, you can do whatever you want. Yeah. For some companies, that control is non-negotiable.
So the question is, is it ever worth going in-house? Yeah. Especially for those just starting out. Or is the research kind of pushing us firmly towards that white label camp? You know, there's not a one size fits all answer. It really depends, truly revolutionary concept, big budget, in-house might be the way to go.
But for most, I'd say, especially early stage fintechs, those who want to validate their idea, get to market quickly. White label makes a lot of sense. Okay. So let's pivot that.
Let's dive into this white label approach. Can you break it down for us in, you know, simple terms? What does it actually mean to go white label? Why is it becoming so popular? Yeah. So think of a white label app, like a pre-built foundation for your banking app. We've done a lot of the heavy lifting.
The core functionality is already there. User registration, account management, basic transactions, maybe even some pre-integrated payment gateways. So you're essentially getting ahead, you're skipping that whole build from scratch phase? Exactly. And that time saving is massive.
But, and our research really stresses this, choosing the right vendor is absolutely key. And things you have to consider, like the technology behind the app. Is it native? Is it hybrid? What's that user experience like? You don't want to be stuck with an app that, you know, reflects poorly on your brand. Right.
Because ultimately, even though it's white label, your customers are going to associate it with you, not the vendor. Exactly. And that's why customization is so important. Can you truly make this app your own? Beyond just putting your logo on it, can you tweak the design? The user flow? Really make it yours.
Yeah. We've got a lot of our listeners asking right now. Absolutely. And then you want to look at the vendor's experience, have they worked with other banks, other fintechs, what's their track record? And of course, pricing, what are the upfront costs? What about ongoing maintenance? Well, speaking of cost, our research throws out some pretty interesting numbers here.
White label development can be significantly cheaper than in-house. I mean, we're talking sometimes as low as 40,000 to 60,000 euros. And the ongoing maintenance. Something like 4,000 to 5,000 a month.
Yeah, it's a huge difference. Huge difference. And we haven't even talked about the speed. With white label, you could be up and running in the market with a functional app in a matter of months, sometimes even weeks.
Yeah, it can be a real game changer, especially in this world, you know. Fintech moves fast. Okay, so white label is sounding pretty tempting right now. But full transparency, our expert today is from Varestrow, you know, a company that specializes in white label banking app solutions.
So I have to ask, how does your offering stack up against all these things we've been talking about? What makes Varestrow stand out? That's a great question. So we're really passionate about building solutions that empower banks and Fintechs to launch quickly without compromising on quality. And we've packed our app with features specifically designed for this industry. Okay, so hit us with some of those features.
What are we talking about? What would our listeners get if they partnered with you guys? Well, for starters, we have robust eKYC solutions, essential for compliance. Right. Got to have that. We have integrated payment options so your users can move money seamlessly.
We've got NFC support so you can explore contactless payments, tap to pay. And if you're thinking about corporate cards, we can handle that too. Wow, okay. You guys have thought of everything.
Now you mentioned speed earlier. How quickly can a company realistically launch an app using your solution? It really depends on how much customization they need, of course. But if they're happy with our core design, just want to add their branding, colors, logo, we can have an app ready to go in two weeks. Two weeks.
Yeah. For more complex projects, unique features, integrations, we're usually looking at around three months. Three months. Still, incredibly fast compared to the 12 to 24 months we're talking about for in-house.
That's a serious advantage. It is. So talk about customization a little bit more. Because I think that's one of the big concerns people have, right? With white label, that lack of control.
It's a common concern for sure. But we take customization very seriously. We want our clients to feel like they really own their app. We offer a ton of flexibility.
Logo changes color, sure. But also custom animations, unique icons, different languages, loading screens. Even the look of the cards themselves, it's not just a basic risk in. That's impressive.
And you mentioned language options. Which is huge. For anyone going after a global market. Right, we understand that.
Global reach means catering to different languages. So we've made it easy to adopt the app. We even offer a web-based solution for some of those text changes, adding new languages. So you don't always need a developer for that.
That's really smart. Takes a lot of the headache out of that whole process. Yeah, for sure. I also love that you offer two distinct design options.
A classic look and then a more modern, trendy one. It's like you're giving your clients the best of both worlds. Yeah, we want to make sure there's something for everyone. Whether you're a traditional bank going for that established feel or a disruptive fintech chasing the latest trends.
Makes sense. And for those who need something even more tailored, you offer an SDK, right? For those who want to really get under the hood. Absolutely. Our SDK gives developers direct access to our core functionalities.
So if they want to build a truly seamless experience across their platforms, consistent branding, consistent functionality, that's the way to go. Okay. I have to say, I'm really impressed with what you guys are doing. It sounds like you've really thought through all the challenges here and come up with some pretty innovative solutions.
Well, thank you. We're always trying to push the envelope and make things easier for our clients. Yeah. It feels like you're striking that balance, right? Offering a really robust platform, future rich, but also giving clients that flexibility to make it their own.
That's exactly what we're going for. We don't think anyone should have to choose between speed and quality or affordability and customization. I love that. So for our listeners, it might be feeling a bit overwhelmed right now.
Let's take a step back and recap some of the key takeaways. You know, building a banking app as we've seen is a complex undertaking. It is. A lot of factors to consider are cost, time to market, the expertise you need.
It's a lot. And research really makes a strong case for at least considering that white label route, especially early on. Definitely. And I think the biggest takeaway here, regardless of which path you choose, is to really understand your own needs, your long-term goals, what features are your must-haves, what's your budget, how quickly do you need to launch? Those answers will guide you to the right solution.
Such great advice. Don't just jump in without a plan. Figure out what success looks like for you. Exactly.
And then you can use the path that aligns with that vision. Now, our research also has this real-world example that I think illustrates this perfectly. Oh, yeah. It talks about two companies, both with a great idea for a new financial app.
One goes a traditional route, in-house. Yeah. Takes their time, wants to get everything perfect. The other chooses a white label solution, prioritizing speed, getting to market faster.
Oh, I think I know where this is going. This is the classic tortoise in hair, isn't it? It totally is. Yeah. The company is building in-house.
They spend 18 months, maybe two years. They're meticulously crafting this perfect app. Meanwhile, the white label company. They launch a functional, well-designed app in six months.
They're already onboarding users, getting feedback, and building their brand. They're out there, iterating, improving based on real data. While the other team's still stuck in development. Yeah, it's a tough lesson.
Yeah. But it happens all the time. It does. Right.
By the time that beautifully crafted in-house app is finally ready, their competitor is miles ahead, loyal users, revenue coming in, they're attracting investors. It's tough to catch up. Yeah, it's an uphill battle. And in a market like Fintech, that early momentum can be everything.
Absolutely. I think that's where the white label solutions really shine. They let you test the waters, validate your concept, get that real-world feedback without sinking years of development and tons of money into something that might not even work. I love it.
It's like that lean startup philosophy. Yeah, exactly. Apply to app development. Right.
And even if you decide later to go in-house, you have that data, that user feedback. Yeah. You're building on a foundation of real insights, not just assumptions. It's such a smart way to think about it.
It's not either. White label can be that stepping stone. Get to market quickly. Learn what works before you commit to that huge in-house project.
And honestly, for some companies, that might be all they ever need. It might be. Especially those focused on innovation. That ability to adapt quickly is a huge advantage.
Totally. You don't want to be stuck with some legacy app that you can't update or integrate with new features. Right. And that's something we're really focused on at Verestro.
We're always iterating, adding new features, improving our platform based on feedback. We want to make sure our clients feel like they're always on the cutting edge. Okay. So we've covered a lot of ground today.
Before we wrap things up for anyone listening who's intrigued by this whole white label approach, what's the best way for them to learn more about Verestro, about your solutions? Yeah. We love connecting with companies who are looking to innovate. Easiest way is to visit our website, restro.com. Lots of information there about our platform, our features, our approach.
You can also reach out to us directly through the site. Our team's always happy to chat, answer questions, see if we're the right fit. Perfect. We'll make sure to include all those details in the show notes too.
And one final thought for our listeners. Building a banking app. In-house white label. It's all about creating an experience that delights your customers.
That sets you apart. Absolutely. So as you embark on this journey, ask yourself, what features would really wow your users? What would make them choose your app over all the others out there? It's the million dollar question. It is.
It is. It's about finding those unique value propositions that really resonate with your target audience. Solve their pain points in a way that no one else is doing. Right.
Understanding your users. Creating something that truly adds value to their lives. And who knows, maybe the next big FinTech disruptor is listening right now, inspired to build that next killer app. I hope so.
This space is so exciting. I can't wait to see what the future holds. These two. Well on that note, we're going to wrap up this deep dive into the world of building banking apps.
Huge thanks to our expert for sharing their insights. For giving us a glimpse into the incredible work that you guys are doing at Ferestro. Well, thank you for having me. It's been a pleasure.
And to all our listeners, thank you for joining us.
