Many organisations grapple with whether to build or buy software. However, focusing on the how before the why, what and where is unlikely to set your project up for success.
Both buying and building come with their own advantages and disadvantages, and in some cases, a combination of the two is the ideal solution..
Advantages and disadvantages of buying or building
Buying software involves lower upfront costs, often includes training, and avoids the need for extensive recruitment and hardware purchases. One of the key advantages of buying is the speed of launching the solution. There's no time-consuming team-building process or complex internal regulatory requirements to manage.
On the other hand, building a solution allows for a dedicated team focused solely on the project. Leaders can make decisions faster without third-party delays and have the flexibility to adapt without fixed budgets or external constraints. However, building a solution can also involve more coordination, potentially causing delays and added complexity
If your financial services firm aims to deliver market-leading personal financial solutions, buying a platform capable of offering a variety of services like banking, payments, and aggregation would be beneficial. Building a platform of that scale may be beyond the resources of many organisations.
But if complete development control of the digital experience is strategically vital, it's best to focus on building the solution quickly and testing it. Look for providers with a clear suite of APIs, such as Moneyhub’s API recipes, to simplify development execution.
Mythbusting buy vs. build
‘Buy’ options can not be customised
One myth is that "buy" options can't be customised. The truth is, customization is always possible if it brings value to the customer. A buy solution can often be tested with early adopter customers, allowing businesses to implement off-the-shelf capabilities while making smaller customizations along the way.
The need for speed?
While out-of-the-box build solutions can be fast for simpler requirements, buying solutions often create long-term value and brand relationships faster due to their extensive and pre-built impact. Building complexity, however, takes time. Once an in-house solution is in place, updating it is usually faster than buying a new one. A buy solution can help get a bigger option to market quickly, which can build a strong business case for further investment or future in-house development.
‘But I want to look different’
Concerned about looking identical to other organisations using a buy solution? Configurations and customisations can create a unique experience while still staying on brand. However, if you have a unique approach vital to your proposition, building the solution with API integrations allows for a tailored experience powered by the right data and information.
You don't really "own" the solution if you buy it
Another myth is the idea that buying a solution means you don't really "own" it. While buying does involve purchasing the intellectual property, enterprise relationships often allow for discussions about data, branding, and even the user experience. Consider whether owning the software is necessary if it's an app that belongs to your customers. If technology is core to your product model, an API solution within an existing infrastructure or a new solution could be the strategic choice.
Build vs. buy - is it really the question you should be asking?
Many providers now offer both buy and build options. Moneyhub, for example, can address both paradigms and has vast experience in solving complex customer requirements. By focusing on solving customer problems and delivering new experiences in the fastest way possible, companies that understand the value of their proposition and adapt to their clients' changing needs will enhance their chances of achieving goals and unlocking opportunities.
The buy vs. build conversation should not be the primary focus. Instead, prioritise understanding the problem you're trying to solve and how to deliver the best outcome for your customers. Whether you choose to buy, build, or combine both approaches, your customers' needs should always be the most important consideration.
Want to explore what Open Finance can do for your business (and your customers)? Just get in touch →