Are you planning to develop a Core Banking system or an end-user application (e.g., web banking, mobile banking) for your fintech project? Then, make sure to read this article and learn more about all those considerations that you need to take into account and in which cases you should buy a ready-made digital bank solution.

In-house development can be a lengthy and often very costly project. Before starting your development project, you should assess whether the time, cost and effort spent on development will pay off, both in terms of finance and business.

So, read our article and learn more in which cases you should avoid developing a digital bank solution by yourself?

You are not planning to offer exclusive functionalities

Start your project by planning your system’s functionality. Most likely, whatever your idea is, a similar software product has already been developed and available in the market. Why should you take on unnecessary work and create what already exists? Moreover, do not expect to save money with your developments – it will not be that cheap.

Don’t reinvent the wheel if you need banking software that should provide standard functionality – for example, opening payment accounts, making payments, currency exchanges, tariffs, financial accounting, end-user applications (e.g., Internet banking or mobile banking). Instead, you can use a ready-made digital bank solution – do not waste time and money developing your solution.

It can take years to develop – but will your solution be up to date in a year or two years, taking into account the fast-paced industry and its growth in terms of technology and demand?

Of course, not all ready-made digital bank solutions are meant for you and your business because of many factors that shape your decision, e.g., functionality, security, adaptability and flexibility, customization options, availability of ready-made integrations, and more. It is worth developing your solution if you plan to provide something extra and there is no such solution available on the market like applications for end-users. For example, imagine that you want to offer different kinds of services under a single application (e.g., payments, account opening, investments, loans). Most likely, you will need to develop it internally since you will not find anything ready-made. Maybe you have a unique design in mind for your clients, or you want to have a back-office interface where you can see different services in one window, e.g., example, banking, acquiring, loans.

But even in the case when you have additional requirements for certain functionalities, it is worth combining ready-made solutions and developments from scratch. So, for example, you can get a ready-made digital banking system (Core Banking) and applications for end-users of our design. Also, you can develop a single interface for operators and integrate the banking system with other off-the-shelf products (we mean other service providers).

You do not have a team of experienced industry experts who have developed similar solutions in the past

Developing a digital bank solution or end-user applications from scratch means an additional human resource and will require both experienced professionals and time. Just finding the right people who have experience in application development is not enough! To create banking/payment products, you need those that have developed very similar systems.

In addition to the functional components and technology, you need to include many other features that client managers, AML/KYC specialists, and finance teams will work with. This requires vast knowledge and experience in information technology, banking technology, payment company regulations, customer experience, security, AML. If you are new to the market, you probably don’t have these specialists in the team. Therefore, miscalculating only one function or module may result in not being able to make any changes when the solution is ready.

Therefore, you need to understand that by buying a ready-made solution or SaaS, you are also purchasing the experience of the people who have developed it. A beginner in programming such complex systems will never replace 10 or 20 years of professional experience.

Even if you find the perfect team, it does not mean that they will be with you until the very end of the project. The loss of one crucial competence (e.g., vital employee or team) can result in a downtime of several months and losses. Then, there are risks here too….

You cannot wait one or two years for a solution to be ready

You need to allocate from seven months to a year to develop a web banking or a mobile application and a year to a year and a half for a Core banking system.

But even after completing and accepting the development, it may turn out that something does not work as planned or something is missing because you forgot to implement or develop.

Once the development of the primary system is ready, you will have to do integrations with payment service providers, e.g., providers of currency exchange services, additional payment type providers, card issuance, automatic AML/KYC services etc.

Depending on the country’s requirements, it may even happen that you are deprived of the payment institution license or becoming the issuer of electronic money since you will not be able to show the regulator a working system at a particular time. For example, some regulators give a year for go-life, some require an operating system when obtaining a license.

You have a limited budget and need to know the final costs beforehand

Most likely, you would like to calculate all costs in advance and understand how they fit your budget. Meanwhile, the final price may differ when developing your digital bank solution or an application from scratch.

The main reasons can be terms of reference that lack a professional approach, the team that lacks experience, incorrectly defined deadlines, other miscalculations at the initial stage or last but not least – problems encountered during the development phase.

The final price is influenced by different factors, e.g., complexity, functionality, infrastructure, and more. Also, it depends on whether you use internal or external resources.

Besides pricing during the development phase, you should consider the maintenance cost for your system or applications after the launch. You will need to continually monitor, update the operating system and optimize the user experience based on customer feedback and crash logs.

You do not want to have any surprises and prefer an already running solution

When choosing a ready-made digital bank solution or applications for end-users, you can look at the final product – watch a demo, test and understand how it fits for your business. If you create your solution, no matter how precise your requirements and needs are, the final product may come as a surprise. Some mistakes can be made during the development process or even planning. You can compare it to making an order on AliExpress or buying an apartment without an actual inspection but from photos. There will always be expectation vs reality.

You want to start making profit fast

When you decide to develop a digital bank solution or an application from scratch with your team or with a development agency, you need to be sure that the time, money and other resources spent on development will pay off quickly. Therefore, you must have a clear understanding of investments and returns.

Assess your capabilities, experience of the team and resources. Then compare this investment to the return on investment in terms of potential product and money. If you don’t have a clear understanding and calculation of how and when these investments will generate profits and customer flows, this can quickly turn into a pit of wasted resources and time.

You need to understand that launching a product in a year or two means starting to earn at a later phase. So, compare both options to return investments faster and decide which solution allows you to make more money quickly.

Whether looking for a digital banking system or ready-made applications, reach out to Advapay to see a product demo for the digital banking platform, mobile banking and internet banking application.


About Advapay

Advapay is a technology company providing the Digital Core Banking platform to empower fintech clients or digital banks to start their businesses and accelerate digital transformation. The platform delivers all essential functionalities, a back-to-front system and a set of tools to customise and bring new integrations. With Advapay, potential and existing customers can connect either to the cloud-based SaaS or on-premise software. Besides the technical infrastructure, the company provides business advisory and fintech licensing services. Interested to learn more, please drop us a message

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