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White Label Solutions Vs. Custom Development Services: What to Choose


11 min read

Digitalization is a costly and lengthy process; this is true. Because of this, many business owners face a complicated choice between buying software private label or white label solutions or investing in the tailored precision of custom development. 

In this article, I want to highlight the unique attributes, applications, and considerations that should guide your decision-making process.

Why Is It Important to Choose the Right Path for Business Development?

Making such a choice can impact a company’s operations, scalability, and long-term success. Each path holds distinct advantages and potential pitfalls, necessitating a thorough understanding of the nuances involved.

Most importantly, both of them will consume your business resources, so it is imperative to figure out initially what solution you will go with. Even considering that you can change your decision later, you must know that the resources and time spent can affect the product’s overall performance and business.

How to choose the right path for Business Development?

What Does White Label Software Mean?

A white label software (or solution) is a pre-built product or service developed by a software development vendor or other merchant but designed to allow another company to rebrand it as its own. Essentially, it enables a business to offer a product or service without investing the time, effort, and resources to develop it from scratch.

These solutions are a cost-effective way for businesses to enter new markets or offer additional services without requiring extensive in-house development. They allow companies to quickly analyze. This extensive service portfolio places Galileo ahead of its competitors in the fintech payments sphere.

Use Cases: Fintech startups, neobanks, and other businesses looking to launch branded financial products quickly and efficiently.

Examples of White Label Software

Fintech Core

Fintech Core is a white-label modular solution explicitly created for banking and payment products. It contributes to more accessible and faster product launches, smooth integration with third-party vendors, and seamless regulatory compliance. Additionally, businesses can enhance their offerings by collaborating with a reliable white label API integration company for extended functionality and connectivity with external services.

This system acts as a banking core, providing businesses with payment functionality like an engine, APIs, and front- and back-end. It’s suitable for any platform and will present as a native app for both iOS and Android. 

Fintech Core can be applied in creating neobanks, digital wallets, money transfers, marketplace payments, mobile wallets, payment acceptance, general ledger, and other fintech products. 

Use cases: The best use cases for Fintech Core are fintech startups, as it contributes to fast time-to-market; retail banks, since Fintech Core integrates electronic billing and payment options seamlessly; established products that seek to customize their business operations and add new features.


Binance’s white-label exchange platform businesses can tap into the booming cryptocurrency market without the extensive development and infrastructure investment typically required. This streamlined approach opens up new opportunities for entrepreneurs and enterprises seeking to enter the digital asset trading space with agility and confidence.

Crypto wallet providers can seamlessly integrate trading functionalities into their applications, offering users a comprehensive financial experience within a single platform. Token issuers gain the ability to establish markets for their cryptocurrencies, fostering liquidity and accessibility for their digital assets. Payment service providers can facilitate smooth crypto-to-fiat conversions, bridging the gap between traditional and digital currencies. 

Use Cases: Cryptocurrency startups and existing financial institutions can launch crypto trading and tokenized asset marketplaces with Binance white-label. The solution also can enable the trade of digital assets

Navigate the choice between white label and custom development with DashDevs' expert guidance

Pros Of White Label Solutions

Now that you know about white label software as much as you need to judge, let’s talk about the benefits of this technology.

1. Cost-effectiveness

White label solutions, including software private label or white label solutions, offer a cost-effective alternative to in-house development. They eliminate the need for extensive research, development, and testing, as the core product is already available. For you, this means investing less in the start and getting a decent opportunity to gain more financing in the future by showing off your existing product.

2. Time-saving and Fast-launch

White-labels come pre-packaged and ready to deploy. Hence, you can bypass the lengthy development process and launch their product or service much faster. The speed-to-market advantage is critical in capturing market share swiftly, especially if the market niche you’re going for is relatively new or with low competition.

3. Reduced Technical Expertise Requirements

Implementing a white-label solution often requires less technical expertise than developing a custom solution from scratch. Businesses can leverage existing technologies without hiring a large team of senior developers.

4. Pre-Established Market Presence

Many white-label solutions come from established providers with a proven track record. Leveraging a reputable white-label solution, you can tap into the provider’s existing market presence, benefiting from its brand reputation and customer base. 

Cons Of White-Label Solutions

Now, moving on to the limitations, I must say that even the best brands of white-label solutions aren’t a “silver bullet,” so to speak. They have their own challenges, limitations, and disadvantages that won’t be noticeable at first glance. Usually, those bottlenecks come out with time after using or scaling such a solution.

1. Lack of customization

White label solutions are pre-built and may not cater to highly specific or unique business requirements. Customization options are often limited, posing challenges for businesses with distinctive needs or those aiming for a unique user experience.

2. Limited scalability

White-label solutions aren’t designed from the ground up to accommodate extensive customization. So, the scalability of your company can become a significant hindrance with all the limitations. 

3. Branding challenges

I believe, white-label solutions are a shortcut to market. However, they may not fully align with a company’s branding strategy. Integrating the white-label solution with the existing brand identity can be challenging, potentially leading to a disjointed user experience.

4. Competitive landscape

Since white-label solutions are accessible to multiple businesses, different companies can offer similar or identical products or services. It strips you of the time advantage, as your business becomes less unique. Or it means that you simply have to find more options to interest people.

5. Hidden technical threats 

Depending on the provider, there may be underlying technical vulnerabilities or limitations in the white-label solution that are not immediately apparent. Leading to unexpected technical challenges or security issues down the line, such issues will require additional resources for resolution.

What Does Custom Development Mean?

Custom development, also known as bespoke or tailor-made product development, refers to creating software, applications, or solutions specifically designed to meet the unique requirements and specifications of a particular individual, business, or organization. Unlike off-the-shelf solutions or white-label products, custom development involves building a system from the ground up, starting with a blank slate.

In custom development, every aspect of the software is crafted according to the client’s specific needs, including its functionality, user interface, features, and integrations. This approach allows for a high degree of flexibility and the ability to address complex or specialized tasks that may not be covered by pre-existing solutions.

5 Industries Where Custom Development Is Prevalent

  • Finance: Financial institutions often require bespoke solutions for services like trading platforms, risk management tools, and compliance software. Custom development ensures these systems align with internal workflows and the necessary level of business operations customization.
  • Healthcare: Custom solutions are vital for electronic health records (EHR) systems, telemedicine platforms, clinical research applications, and healthcare analytics tools. These need to be tailored to meet the complex requirements of the healthcare industry.
  • Manufacturing: Customized software improves process control, production management, quality assurance, and inventory tracking. These solutions optimize operations in manufacturing and improve efficiency.
  • Gaming: The gaming industry is simply too varied. Custom development is crucial for creating interactive games, gaming engines, and virtual reality (VR) or augmented reality (AR) experiences. These require unique functionalities and user interfaces.
  • Education: Educational institutions and e-learning platforms often require custom learning management systems (LMS), courseware development tools, and virtual classrooms. 

prevalent industries for custom software development

Pros Of Custom Development

Despite consuming more resources, custom development also gives you more in return. Let’s take a closer look at its benefits. 

1. Complete control and customization

Custom development allows businesses to have full control over their application’s design, features, and functionalities, ensuring it aligns perfectly with their unique needs and requirements.

2. Scalability

When the software architecture is designed, it always regards scalability as one of the main parameters. This is why customer software solutions can be adapted and expanded as a business grows, preventing the need for a complete overhaul or migration to a new system.

3. Competitive differentiation

A bespoke solution can set a business apart from competitors. It can provide unique features and functionalities not readily available in off-the-shelf or white-label solutions, offering a distinct advantage in the market.

4. Long-term cost-efficiency

While upfront costs may increase, custom development can lead to long-term cost savings. Licensing fees or subscription models won’t limit businesses, and they can avoid the costs associated with adapting generic solutions to fit their specific needs.

Cons Of Custom Development

1. Higher upfront costs

I already mentioned that a custom solution typically requires a larger initial investment. This can be hindering for smaller businesses with limited budgets.

2. Longer development timelines

The development process can extend over several months, potentially delaying the desired product or service launch.

3. Need for technical expertise

Implementing custom solutions demands a team with the necessary technical expertise proficient with the technologies you want to use and experienced in your niche since every requirement and regulation is unique and sometimes might even be tied geographically.

4. Maintenance and updates

Custom solutions require ongoing maintenance and updates to ensure they remain secure, compatible with evolving technologies, and aligned with changing business needs. This necessitates a long-term commitment of resources and expertise. 

Factors To Consider When Choosing Between White-Label Solution and Custom Development 

#1. Business Goals and Strategy

Short-term vs. Long-term Objectives

Custom development tends to align better with long-term strategic goals, offering a tailored solution for sustained growth. On the other hand, if you’re looking for something more practical that would better work for short-term objectives, a white-label solution might be a thing for you. 

Market Positioning

White-label solutions may create a more standardized market presence, as multiple businesses may utilize similar products or services. Custom development, in turn, creates a unique market proposition, enabling businesses to differentiate themselves with specialized features. 

#2. Budget and Resources

Financial Considerations

Custom development will cost higher upfront, but it may offer long-term cost efficiency. White-label solutions can be more budget-friendly but may involve ongoing licensing or subscription fees.

Availability of Technical Expertise

Custom development requires a skilled technical team or access to specialized developers. Conversely, white-label solutions may be more accessible to businesses with limited technical expertise. Some of them would require only moderate technical knowledge, while others might need more expertise but still will be less demanding.

#3. Time Constraints

Urgency of Market Entry

White-label solutions provide a faster route to the market as they have everything built in. For example, Fintech Core offers businesses a banking core, enabling them to start their business from scratch just with this one solution. Custom development, however, involves a longer timeline due to the development process.

Development Timeline

If you opt for custom development, you should be ready to pour a lot of time into planning, architecture, design, development, and testing. This may not be suitable for businesses with urgent market entry needs.

White-labels can be easier in that regard, though some only provide back-end services, which means that design and testing will still take time.

#4. Branding and Identity

Importance of unique branding

Custom development will help you create and preserve unique branding. White-label solutions typically don’t offer this kind of customizable option. However, it is still possible to create a unique brand with some effort. For example, you can integrate with other services to provide your customers unique features or create eye-catching designs.

Customer perception

Custom solutions can convey a sense of exclusivity and commitment to quality. However, white-label solutions can be as effective if they meet customer needs and expectations.

#5. Scalability and Flexibility

Future growth plans

Custom solutions can be tailored to accommodate specific growth plans and evolving business needs. White-label solutions don’t offer such scalability, so you should think about further growth from the start and plan your finances for future upgrades.

Adaptability to changing market needs

Custom solutions offer greater flexibility to adapt to emerging market trends and changing customer preferences. White-label solutions may have constraints in this regard, depending on the provider’s update and customization options.

DashDevs software experts can work with either direction

When to Choose White-Label Solutions?

  • When you need a fast launch! If you need to enter the market quickly or seize a time-sensitive opportunity, white label software development offers a faster route to launch. They come pre-built and can be implemented rapidly, saving you valuable time (remember that without proper time to market, your niche would be taken and your solution wouldn’t succeed). 
  • When you need to minimize development and operational costs! White-label solutions can be more cost-effective than building custom solutions from scratch. They often involve lower upfront expenses and reduced ongoing maintenance costs.
  • When you or your team lacks the specialized technical skills! If you need additional resources to develop and maintain complex software or systems, white-label solutions provide a ready-made alternative that doesn’t demand extensive technical know-how.
  • When you don’t want to risk everything you have! Custom development projects carry inherent risks, including budget overruns and delays. White-label solutions often come with a proven track record and established reliability, reducing the risk associated with untested software.
  • When you need to test before launch to understand if users need your product! Before committing to a custom-built solution, you can use a white-label solution to test the waters and gauge customer demand. It allows you to validate your concept without a significant upfront investment. Consider integrating scalable functionalities using a white label API integration company to assess user engagement more comprehensively. Don’t just buy a code in that case, I think it would be better for you to just subscribe to a service.


Looking for the optimal solution for your business, a thoughtful evaluation of your unique requirements is paramount. By weighing the advantages and disadvantages of both custom development and white-label solutions, you pave the way for a strategic decision aligned with your objectives.

Should the path forward remain unclear, seeking counsel from industry experts can provide invaluable insights, ensuring your choice harmonizes seamlessly with your business vision. If you want to opt for a white-label solution, you can check out our Fintech Core page. 

If you decide custom development is better for you, contact me to learn more about how we do it in DashDevs

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Table of contents
What Sets White Label Apps Apart from Custom Apps?
White-label apps are pre-built applications developed by third-party vendors, designed to be rebranded and resold by other businesses. In contrast, custom apps are tailor-made solutions developed from scratch to meet specific business requirements. The key difference lies in the level of customization and control each approach offers.
What Types of White Label Software Exist?
White label software spans various categories, including fintech solutions, marketing platforms, and communication tools. These pre-built solutions cater to different business needs, offering companies a cost-effective and efficient way to enter new markets or expand their service offerings without extensive in-house development.
What are the Types of Custom App Development?
Custom app development encompasses various methodologies, such as native, web, and hybrid app development. Each approach has advantages and is chosen based on factors like performance requirements, target audience, and platform preferences. Tailoring the development process to specific needs ensures a unique and optimized solution.
Is White Label Development a Good Choice for Startup Businesses?
Yes, white label development is often a smart choice for startups. It allows them to launch quickly, saving time and resources. Startups can leverage existing solutions to test their business concepts, enter the market faster, and focus on building their brand rather than developing a product from scratch.
How Does Custom App Development Compare to White Label Software for Businesses?
The choice between custom app development and white-label software depends on specific business requirements. Custom app development offers unparalleled flexibility and a tailored solution but can be resource-intensive. On the other hand, white label software provides a faster, cost-effective option suitable for businesses looking for ready-made solutions to enter the market swiftly.