What is white labelling?

White labelling is a business model which involves a financial institution creating a product or service (e.g., bank accounts, payment cards, loans) which is then branded and distributed by a partner, which could be a financial or non-financial entity. For instance, a retail chain might offer a branded credit card issued by a bank.

Key findings

• Widespread adoption: Over 35 per cent of surveyed banks in 2025 reported using white labelling, with applications ranging from payment services to credit products like Buy Now Pay Later (BNPL) and open banking services.
• Diverse partnerships: Non-financial entities, such as digital platforms and marketplaces, are increasingly acting as partners, leveraging their customer reach to distribute financial products.
• Cross-border potential: White labelling is not limited to domestic markets; it is also being used to expand services across borders.

Opportunities

• Cost efficiency: Providers can leverage partners' infrastructure and brand visibility, reducing marketing and operational costs.
• Expanded offerings: Partners can offer a broader range of financial products without needing their own licenses.
• Increased customer base: Both providers and partners can reach new customers.
• Financial inclusion: Digital distribution can make financial services more accessible, especially regarding the geographic distribution and fee models.
• Innovation and competition: It prompts innovation and lowers entry barriers, promoting a more dynamic financial market.

Risks and challenges identified by the EBA

• Transparency issues: Consumers may struggle to identify the actual service provider or know whom to contact for complaints.
• Opacity of the cost structure: Consumers may receive inaccurate, incomplete, or contradictory information and the terms and conditions applicable might not be clear.
• Fraud risks: Reduced clarity in roles and responsibilities can increase vulnerability to fraud. Even more, fraudulent activity may occur due to weaknesses in partner CDD or oversight practices.
• Regulatory complexity: Supervisors face challenges in monitoring these arrangements, especially when partners are non-financial entities or operate across borders.
• Operational and reputational risks: Both providers and partners may face risks due to the fragmented value chain and potential misconduct by the other party.

Next steps:

The EBA plans to:

• Enhance supervisory convergence by integrating white labelling into the 2026 Union Strategic Supervisory Priorities.
• Improve consumer awareness through better disclosures about the roles of providers and partners.
• Continue monitoring the evolution of white labelling through regular assessments.

EBA’s press release and the reports can be found here