When a legacy financial institution decides whether to outsource an innovative solution that it needs or to try and develop it in-house, this is a standard decision of whether to build or buy. They first analyze how well custom-made fintech solutions meet their current needs, particularly their pain points. If the solution covers more than 70-80% of their requirements, they may proceed with implementation. Other factors are also considered, but coverage analysis typically comes first.
These factors include:
- Access to Specialized Skills: Fintech companies specialize in innovative financial technologies and have teams with deep expertise. By opting for a custom-made solution, financial institutions can leverage this specialized knowledge.
- Reduced Development Costs: Developing a solution in-house can be expensive due to the need for specialized talent, infrastructure, and longer development times. Custom solutions are often more cost-effective as they spread development costs across multiple clients.
- Faster Deployment: Fintech companies often have pre-existing frameworks and components that can be quickly customized to meet the institution’s needs, significantly reducing the time required to deploy a new solution.
- Reduced Implementation Risk: Fintech firms have experience delivering similar projects and can navigate potential pitfalls more effectively, reducing the risk of project failure or significant delays.
- Scalable Solutions: Custom-made fintech solutions are designed to scale with the institution’s needs, allowing for growth without requiring substantial reinvestment in technology.
Dmytro Karaptan has a bachelor’s degree in Business Administration from the International Science & Technology University and a Master of Business Administration from Kyiv National Economics University. He also received his Project Management Professional (PMP) certification from the Project Management Institute and is a Microsoft Certified Dynamics Specialist.
Dmytro joined Digicode as an ERP Program Manager to establish its ERP implementation business line, which helps SMBs implement appropriate Microsoft Dynamics 365 ERP solutions.
His team helps automate supply chain and finance processes and integrate them with external tools and systems. By gaining a deep understanding of clients’ businesses, his team delivers tailored ERP systems and provides comprehensive go-live support.
