Digital customer engagement is becoming essential in financial services, with customer portals playing a significant role in consumer interactions for activities such as making payments and managing account details. Financial institutions face a crucial decision when it comes to implementing or upgrading these portals: whether to build an in-house solution or partner with a vendor.
Lawrence Buckley discusses the implications of this choice, highlighting the operational, compliance, and cost considerations involved. An internally developed portal allows for customization but requires substantial investment and commitment over time. The development process can span 1–3 years and necessitates resources for UX/UI design, back-end development, compliance monitoring, security updates, and ongoing maintenance.
Alternatively, partnering with a trusted vendor can offer a more efficient path to launching and maintaining a portal. Vendor solutions often come with built-in compliance features, scalability options, regular enhancements, and support for accessibility. These solutions typically allow quicker deployment within months and provide predictable costs while integrating seamlessly with existing loan management systems.
Buckley advises companies to evaluate their internal expertise and capacity before deciding on an approach. Key questions include assessing the opportunity cost of redirecting resources from core lending operations to software development and determining the urgency of launching the portal to meet consumer expectations.
To assist companies in navigating this decision-making process, an expert-informed guide titled "Build vs. Buy: The Critical Customer Portal Decision That Impacts Your Operations and Bottom Line" is available. This guide offers a comparison of both approaches along with insights into hidden costs and planning considerations.
The strategic decision regarding customer portals extends beyond technology; it significantly impacts business operations and long-term growth potential.