Build vs Buy

Pete McIntyre, the liquidity expert

Written by Pete McIntyre

June 18, 2024

Realiti® is the only liquidity intelligence platform to offer real-time, 360° visibility across all liquidity forms—cash, securities, and CBDCs. You get controls that seamlessly facilitate cross-enterprise liquidity and capital optimization.

Recognized as the industry’s best-in-class solution for regulatory confidence, Realiti is transforming the landscape for banks, exchanges, and funds of all sizes. Realiti isn’t just a tool; it’s your liquidity lens.

But why wouldn’t you build your own?

Build vs. Buy: 5 key factors to assess

By combining continuous investment, client collaboration, R&D focus, and regulatory compliance, Planixs maintains Realiti as a cutting-edge solution that meets the future needs of market participants.

The cost benefits of buying versus building depend on various factors, including the specific needs of the organisation, the complexity of the solution required, and the long-term strategic goals. Here are the benefits of each approach.

Cost

Build: Requires a large development team and significant financial investment. This includes hiring skilled developers, project managers, and other professionals. In-house solutions often exceed the budget.

Buy: Buying a software solution often offers more cost-effective options and financial packages tailored to meet budget objectives. We bear the expenses of developing, testing, and maintaining these custom features.

Time

Build: Can be hard to set a realistic end-date due to requirements definition, design, and build phases. Building a solution from scratch typically takes more time, delaying the time it takes to realize returns on the investment.

Buy: Realiti is a ready, proven, and low-risk solution that can be implemented in a matter of months or even weeks. We have the resources in place to quickly get a solution up and running.

Success

Build: An unproven in-house solution carries risks of functionality and performance issues. The organization is responsible for ongoing maintenance, updates, and upgrades.

Buy: Tried and tested solutions from experienced software experts with vast experience working with treasury teams and addressing banking challenges. Long-term supplier relationships provide ongoing training and support.

Regulator Approval

Build: Real-time liquidity management solutions need to be viewed positively by regulators. External factors like regulatory changes or technology advancements may incur additional costs.

Buy: Realiti is already being used by numerous banks worldwide and has been approved by local regulators. Planixs commits to updating Realiti® to incorporate changes in local and global regulations.

Long-term resilience

Build: Legacy technologies may not be suitable for real-time challenges. Building on existing legacy solutions adds complexity and cost.

Buy: Software companies investing in R&D can shape future requirements to suit banks. Realiti is continuously enhanced to meet evolving regulatory and data requirements.

What you need to consider and why

Before deciding to build a real-time liquidity solution, you must carefully evaluate costs, expertise, time frames, regulatory compliance, integration, scalability, and security,. You will also need to consider potential resource constraints and the advantages offered by external vendors in terms of focus on core competencies, rapid technological advancements, vendor expertise, faster time-to-market, and maintenance support. Here is a quick checklist:

Scalability  Buying may be more cost-effective for smaller to medium-sized organizations, while very large enterprises may find value in building for scalability and specific requirements.

Industry Standards   In some industries, compliance and adherence to industry standards may be more easily achieved through purchasing solutions designed with those standards in mind.

Rapid Changes   If the market or technology landscape is changing rapidly, buying can be more cost-effective as vendors are likely to update their solutions to meet new requirements.

Core Competencies   Organisations need to assess whether software development is a core competency. If not, buying may be more cost-effective, allowing the organisation to focus on its primary business goals.

The Planixs ‘Fit-for-Purpose’ Commitment

Planixs ensures that Realiti remains a fit-for-purpose through:

1. Continuous Investment: Planixs has already invested tens of millions of dollars in developing Realiti and will continue to invest in its ongoing development. This investment is aligned with a product roadmap aimed at adding new features and increasing functionality to meet evolving market needs.

2. Client Collaboration: Planixs actively collaborates with a large number of financial services organizations to design and enhance Realiti. The insights gained from working closely with clients are used to inform product development, ensuring that Realiti remains relevant and aligned with industry requirements.

3. R&D Focus: Planixs prioritizes research and development efforts to stay at the forefront of advancements in real-time treasury software. This focus on R&D enables Planixs to identify and incorporate emerging technologies, industry best practices, and regulatory changes into Realiti, making it a future-proof solution.

4. Compliance with Regulations: Planixs commits to updating Realiti to incorporate changes in local and global regulations. This dedication to regulatory compliance ensures that Realiti remains suitable for use in the marketplace, even as regulatory requirements evolve.

Get expert advice on building liquidity confidence

You are warmly welcome to ask us any questions. Book a call to get expert advice from Planixs, we’d love to talk to you.

You can book a consultation with one of our team members to get expert advice here.

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