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Crowdz White Label Overview - Financial Institutions
The Crowdz White Label program gives financial institutions and banks the ability to automate their trade finance programs, and to integrate processes that they can deploy within an embedded integration onto their own platform.
What is the Value That the Crowdz White Label Solution Provides?
We give financial institutions and banks the ability to automate and digitize their trade finance programs. The current business models of financial institutions focus on serving large-sized customers, and they usually rely on a white-glove approach to handle them. Since these larger customers typically have a well-recognized reputation and a vetted financial history, it makes it easier for financial institutions and banks to determine the risk involved with funding such customers, and ensuring a return on investment. What this model neglects, however, is a massive pool of small to medium-sized businesses (SMBs) that would qualify for the same type of funding. Due to a lack of transparency around the company health of these SMBs, determining the risk involved with purchasing their unpaid receivables is an extremely manual and time-consuming process.
With our white label solution, financial institutions and banks are able to automate and digitize a lot of these clients into a seamless, integrated process that they can deploy within an embedded integration onto their own platform. Our platform also offers a proprietary risk model, called the SuRF Score that helps banks and financial institutions with the underwriting process for SMBs.
We also handle the upfront registration, KYC/KYB, and AML. Basically, we want to do a lot of the legwork so that our partners understand what the funding opportunity is for each potential client. The ability for us to do this in an automated fashion gives them a better throughput model, and also allows them to service long-tail clients they otherwise wouldn’t have had the ability to fund.
How Does the Crowdz White Label Solution Work?
The Crowdz White Label solution starts with our golden set of code, which is based on our global receivables finance platform called Avalon Marketplace. When we’re building out a new white label platform, we take a copy of that code, and move it over to the domain that will define how the white label works. Crowdz White Label offers a highly customizable experience for our partners. One of the key features of the solution is the ability to add and customize modules to meet the specific needs of each partner. Additionally, the platform can be “skinned” to reflect a partner’s brand, with the ability to change colors, fonts, and logos to match a partner’s existing branding. This allows financial institutions to seamlessly integrate the Crowdz White Label solution into their own systems, without any mention of Crowdz, making it appear as though it is part of their own system.
For companies that prefer not to use the white label solution, we offer the option to integrate into their system via API. This allows for a seamless experience for the partner. For example, a partner’s registration process can be completed on their own site and then they can simply use the API to access Crowdz’s platform for uploading receivables and completing transactions.
What is the Cost Structure?
The cost structure of the Crowdz White Label solution is flexible and straightforward. The discount for the Seller is determined by the financial institution, and is also determined by the SuRF Score. As far as the fee structure, we use an operational fee that we take off of the funding, and that’s done at the transaction. The rest of the spread, or the discount that’s offered to the seller upon repayment, is then captured by the financial institution in terms of an APR. Over the course of a year, we see traditional APRs ranging from 8-15%.
The other option we have is a subscription model. This option would include a quarterly, monthly, or an annual subscription. This allows the partner to utilize an “all-you-can-eat” model based on how many transactions they want to do per month, per quarter, or annually, and just pay a subscription. Our pricing is definitely geared towards what is favorable for the financial institution from the start, and how that would scale up after the first few quarters of operation.
Hear from our Chief Growth Officer, Steve Boderck, as he provides additional insight around the Crowdz White Label solution.
Interested in learning how our white label solution can work for you? Book a demo with one of our team members here.