"Buying versus building" online direct lending software - the dilemma facing financial services firms looking to meet the speed and service that Millennials and GenZ will demand from their loan provider. So what are the considerations for each and which should win the battle for precious IT budget:
> SPEED TO MARKET
No doubt the approval stage of your digital lending concept plan has already taken forever. Now you're ready to get started...
Speed to market - Build?
First consideration: how long will it take you to:
...launch in 12-18 months?
Speed to market - Buy?
If you found a trusted digital lending software partner (like Madiston), how long will it take you to:
...launch (depending on your configuration) in 90 days?
Score: Build 0 Buy 1
> THE RISK
Which is the route that is most likely to deliver such a transformational lending product, on-time, on-budget and with your reputation intact...
Risks - Build?
Do you and your team have the skills and experience in-house to:
Even the FCA have said that many firms have underestimated the complex systems required so there is a significant risk of project over-run.
Risks - Buy?
Does your trusted software partner (like Madiston) have:
If the system you're buying has been successfully delivered and supported elsewhere, then your decision to buy is easily justified.
Score: Build 0 Buy 2
> THE COST
If you look at the digital lenders in the market today that have built their own systems from scratch you will find eye-watering sums have been invested to date...
Cost - Build?
Have you included in your 5 year costings:
The cost of running and supporting critical software in a regulatory environment is well known and the cost of getting it wrong is more.
Cost - Buy?
Will you know the costs of your bought online lending system up-front including:
Having this information up-front enables you to budget more accurately and why bear the burden of industry-wide changes on your own?
Score: Build 0 Buy 3
Find a trusted partner (like Madiston) for your digital and marketplace lending that can quickly deliver a system at less cost and less risk, that is proven, gives you the ability to add your "extra value" and keep up with your growth plan. We might be biased but the logic stacks up!