“Buy vs Build” and the optimized middle ground: integration
Beyond the binary choice of build or buy, a compelling third option exists: integration. This approach enables lenders to capture benefits of both buy and build approaches, and reduces the risk of disadvantages of either option over time. Integration offers lenders the choice of bringing or building their own internal solutions that are proprietary or unique to market, and integrating those solutions with a purchased platform like Peach.
Peach is an event-driven, highly configurable, API-first platform which makes integration possible across a range of capabilities from its comprehensive and resilient ledger, to borrower communications to agent servicing tools. Lenders can access off the shelf solutions through Peach’s servicing suite, making it possible to rapidly deploy to market while building internal tools over time. It’s a blend of buy and build made possible through integration with the portions of the Peach platform that the lender wants to supplement their own tech stack, reserve internal resources for proprietary internal projects, and optimize time to market product releases.
Let’s break down the considerations for an integration approach such as one with Peach.
Advantages of Integration:
- Resource effectiveness: It can be more cost-effective than a full custom build and potentially more flexible than a monolithic off-the-shelf solution.
- Focused customization: Customize configuration, not code. Prioritize internal resources to customize lender-owned systems, while leveraging Peach’s API-first, highly configurable variables to achieve market fit.
- Flexibility and scalability: Migrate existing portfolios or launch new ones in our flexible infrastructure that supports multiple product types. Our cloud-native platform scales up or down as needs change.
- Speed to market: Implement new product configurations quickly in time with business launch to market requirements. Use existing systems, integrate new ones, or transition between while getting the best of internal resources coupled with external expertise.
- Access to Specialized Expertise: Integration allows lenders to tap into the specialized capabilities of other companies. Peach continues to improve the platform to offer lenders the modern solutions and tools needed to remain current in the market.
Considerations for Integration:
- Make sure systems connect smoothly: Successful integration depends on good, readily available connections (APIs, etc.) enabling access to data for many use-cases. Using an API-first approach allows for easier updates and additions without causing disruptions.
- Get the right experts involved: Integrating different systems can be complex and requires technical knowledge. Combining the internal team's expertise with the integration platform's experts ensures a successful outcome.
- Keep data flowing correctly: It's essential that data moves easily between systems. The integration platform should provide clear visibility into lender data and any related events.
- Choose a partner who understands the business: Working with a partner who knows the challenges of loan management and servicing will lead to better, long-term results. They can create tailored solutions, saving lenders time and money.
Conclusion: Choosing the Right Path
In today's dynamic lending environment, the conventional 'build versus buy' decision could be answered with “both” through the strategic advantage of integration. This approach empowers lenders to leverage the speed and cost-effectiveness of off-the-shelf solutions while maintaining the focused customization and control of bespoke development. Integration, particularly with a platform like Peach, allows for the optimal allocation of internal resources towards core, differentiating systems, while harnessing external expertise and API-driven flexibility for loan management and servicing.
Peach provides an event-driven, highly configurable, and API-first platform that connects with existing systems, enabling rapid market entry while maintaining data integrity and ensuring scalability. By partnering with Peach, lenders gain access to specialized domain expertise and a platform designed for a high degree of configurability, effectively mitigating the limitations of both pure 'buy' and 'build' strategies. This allows lenders to create a tailored technology ecosystem that is both agile and robust, adapting to evolving business needs and technological advancements, and ultimately driving sustained competitive advantage.
With Peach, it’s not a binary decision to build or buy, we offer the best of both options through integration. Contact us today to setup a discovery meeting.