Build vs. Buy: Making the right choice for Payments Intelligence

In the dynamic banking world, where data drives every decision, payments intelligence has become essential. But as banks embrace the need for real-time insights and operational efficiency, a crucial question arises: Should they build their own payments intelligence solution or buy a proven platform like Volante Payments Intelligence?

This decision is not merely technical; it’s strategic. Banks must weigh the benefits of control and customization against costs, time, and resource allocation. As the industry evolves, the choice between build and buy can significantly impact a bank’s operational agility and competitive standing.

The allure of building in-house

Building an in-house payments intelligence solution offers undeniable advantages. Banks can design systems tailored to their unique operational needs, ensuring that every report, dashboard, and alert aligns perfectly with internal processes. Maintaining full control over data integrations and updates is also appealing, particularly for institutions with stringent data governance requirements.

However, this path is fraught with challenges. Developing a comprehensive payments intelligence platform requires substantial investment—not just financially, but in time and talent. Infrastructure costs, software licenses for tools like Tableau and Power BI, and the recruitment of skilled data analysts and developers quickly add up. Moreover, the development process is time-intensive, often taking months or even years, delaying the benefits banks hope to achieve.

Once built, the maintenance burden looms large. Keeping the system updated with evolving regulatory requirements, technological advancements, and internal changes demands continuous attention and dedicated resources. Banks must ask themselves: Are we prepared for this long-term commitment, or would our resources be better spent on core banking operations and customer service innovations?

The case for buying Payments Intelligence

On the other side of the spectrum lies the buy option, exemplified by Volante Payments Intelligence. This approach offers a ready-to-use solution that integrates seamlessly with existing systems, providing immediate benefits without the prolonged development phase.

Payments Intelligence operates on a single subscription license model, eliminating hidden costs and providing banks with a predictable pricing structure. Deployment is swift, especially with its cloud-based architecture, allowing banks to harness payments intelligence within weeks rather than months.

But the advantages go beyond cost and speed. With Volante, banks gain access to comprehensive support. Maintenance, updates, and troubleshooting are handled by a team of experts, freeing internal resources to focus on strategic initiatives. This level of support ensures that banks remain agile, compliant, and competitive, even as the financial landscape evolves.

Industry trends: a shift towards buying

The financial industry’s growing preference for buying over building is evident. According to a PYMNTS report, 95% of banks are partnering with fintechs to enhance their digital products and services, with 65% forming such partnerships in the past three years. This trend underscores the value of leveraging specialized expertise, allowing banks to focus on core operations while benefiting from cutting-edge technology.

Industry experts echo this sentiment. A 2024 McKinsey report highlights that banks utilizing business intelligence tools experience up to a 20% increase in operational efficiency.

Deepak Gupta, EVP at Volante, notes, “Partnering with fintechs for Payments Intelligence allows banks to stay agile, compliant, and competitive. Our platform is designed to meet the unique challenges of the payments industry, offering real-time insights without the operational overhead of an in-house solution.”

Conclusion: A strategic choice for future-ready banks

For banks navigating the complexities of modern payments, the choice is clear. Building an in-house solution offers customization but comes with high costs, long timelines, and ongoing maintenance demands. A BI-ready tool like Payments Intelligence, however, provides a cost-effective, efficient alternative with rapid deployment, comprehensive support, and continuous innovation.

In a competitive financial landscape, where operational efficiency and customer satisfaction are paramount, investing in a proven payments intelligence solution is not just a choice—it’s a strategic necessity.

Explore how Volante Payments Intelligence can transform your bank’s operations. Schedule a demo today and take the first step towards operational excellence.