Build vs. Buy: Making the ISV Choice

The debate around Build vs. Buy isn’t new; it’s been relevant since the first Independent Software Vendors (ISVs) entered the market. However, with the rise of open-source and perceived “free tools,” it’s unsurprising that, in recent years, more banks and financial institutions are considering self-built, home-brewed solutions instead of investing in proven software.

Bailing Water or Fixing the Hole?

The appeal of having full control and flexibility over the design, architecture, build, and deployment of a custom solution is understandable, but is it wise? In the words of Kelvin Henney, “If you imagine you're in a boat, and you're taking on water, the first thing you do is start bailing the water out. Over time, you'll get very good at bailing out water, but is that the skill you want to develop, or do you want to spend some time fixing the hole?”

Look at the Bigger Picture

As an ISV offering a CCM tool that sits at the heart of banking ecosystems to ensure critical customer communications are delivered, we often see self-built solutions introduced to address what seems like a simple requirement. But while today’s need may focus on a single content type, such as client statements, what happens months or a year later when a broader range of documents must be managed or stored with customer IDs?

Self-build might appear attractive when addressing a single, isolated content need, but rarely do operational needs stop there. Don’t focus solely on the ‘now’—consider what your future communications and customer journeys might require.

Concentrate on What You Do Best

The term “value proposition” is widely used, but often without fully appreciating its meaning. With self-build, there’s often a perception that it’s the cheaper option. But when all costs are considered - such as the opportunity cost and hidden expenses - it often isn’t.

In a bank’s digital transformation, the real value comes from delivering improved client interactions, hyper-personalized communications that cater to individual client accounts, retaining customer loyalty, and growing account value. Our product's, Lasernet and Autoform DM, is purpose-built to achieve that, with a roadmap shaped by our team, global partners, technical advancements, and input from over 130 banks in our user community.

Compare this value with the cost of developing, maintaining, and supporting an in-house solution. The missed opportunities alone are costly, not to mention the growing technical debt, which increases as time passes. Remember, technical debt isn’t just something you’ve “accrued”; it’s a burden that continually demands higher repayments over time.

Keeping Up with the Regulators

Operating in a regulated industry further increases technical debt through the constant need to align with evolving regulations. The Lasernet Banking platform enables organizations to do this seamlessly, providing robust audit tools to meet stringent regulatory demands. By partnering with a vendor that is ISO27001 certified and aligned with DORA, SOC2, and other global standards, you ensure compliance through both the product and the vendor.

More than Just a Product – A Partner on your Journey

When you choose us, you’re not just buying software; you’re investing in the trust, reliability, and expertise of an ISV with over 30 years of experience. With a global footprint spanning 57 countries, our solutions are backed by 24/7 support from our team and partners.

Considering these compelling points, it’s difficult to justify a self-built solution over a proven, specialized product that offers not only functionality but also the peace of mind that comes with reliability and scalability.

Formpipe provides the leading document composition, delivery and storage solution for core banking platforms. Find out what we do to enhance customer journeys, create deeper engagements and provide greater transparency in banking.