Selecting a model for launching a fintech solution is a crucial step in developing a digital product. At this stage, it is essential to determine which approach will be more profitable and effective for the business: purchasing a ready-made solution, utilizing a SaaS service, acquiring a license, or developing a custom solution from scratch. Each option has its own characteristics, and the appropriate choice depends on the goals, budget, and long-term strategy. It is also crucial to find a reliable technology partner that provides fintech software development services, such as Kindgeek, as the experience and expertise of the selected company directly impacts the quality and success of the project. This article will help you understand the pros and cons of each approach.

When Should You Choose a SaaS Banking IT Solution?

Suppose you are a beginner and plan to start with a relatively simple solution that offers basic functionality without incurring a significant initial investment in your fintech project. In that case, you should consider a SaaS banking IT solution. But you should understand from the very beginning that SaaS will provide standard features, which means that the customization options will be limited.

Pros of the SaaS banking IT solution model:

1. The ability to launch the system within three months.
2. The ability to make minor changes to suit your business requirements, including changing business logic, branding, and changes to end-user applications, etc.
3. No need to maintain an IT team for implementation and support.

Cons of SaaS banking IT solution model:

1. SaaS banking IT solutions offer pre-developed functionality with ready-made integrations, thereby limiting the need for additional development of new modules or custom integrations.
2. The system is offered with the hosting of the provider. Therefore, there is no possibility to deploy it on your servers.
3. You should be prepared to increase the fee on a monthly basis if the number of clients or transactions increases. Very often, this is unprofitable.

When Should You Choose a Software License?

If you already have an operating business with a customer base, product portfolio, and a clear vision for business development, or you have a clear understanding of the future portfolio of your products and have a budget for software, then you should choose a software license for banking software. With this model, you can create new integrations and make various changes to the ready-made solution. Compared to SaaS, a software license for banking software offers more opportunities for customization and modification and also provides long-term savings on monthly payments.

Pros of a software license for a banking IT solution:

1. Combination of wide functionality and fast time to market.
2. Compared to SaaS, you have more options here, particularly in terms of choosing any hosting.
3. A large team of IT specialists is not needed.
4. there is a chance for customization.
5. Control over data, because the data is on your side.

Cons of a software license for a banking IT solution:

1. In most cases, you will not be able to make major changes using your own IT team and will need to request changes from the vendor.
2. You need to estimate all costs in advance, including hosting (on-premise or cloud) and any additional software costs — database server, system software, etc.

When Should You Buy a Ready-Made Banking IT Solution With Source Code?

Do you want to launch your fintech software quickly and are not ready to spend many months or even years on internal development? Then a ready-made banking IT solution or buying a platform with source code is the right choice for your customized solution that meets your needs today and in the future.

Pros of a bank platform with source code:

1. Having the source code at your disposal (at least for end-user applications) gives you more customization options.
2. Ideal for a group of companies, as you can obtain a solution for multiple companies at the price of one. Most likely, you will not pay extra for each new company.
3. Control over all data. All data is on your side.
4. Ready-made banking IT solution, approved by regulators.
5. The ability to try the system before you buy — no surprises, compared to software developed by you.

Cons of a source code banking platform:

1. Acquiring a source code platform is quite expensive and requires significant investment at the initial stage.
2. Management from the vendor and training for setup and changes are required at the initial stage.

When Should You Develop Your Own Software?

Do you have specific requirements for the functionality of your banking IT solution? Is it critical for you to have control over all data and development? Is there no solution on the market that meets your requirements? Then, creating and developing your own solution is the right choice. However, it is essential to consider that creating, launching, and maintaining software in the long term will require significant financial resources and a qualified IT team.

Pros of in-house development:

1. Full control over the development process, including functionality and interfaces. There are no restrictions on customization, changes, and adding new features both now and in the future.
2. Proprietary rights to the software code and applications.
3. Independent technology, not owned by external suppliers.

Cons of in-house development:

1. High implementation costs that are difficult to calculate and predict at the very beginning. Schedules and deadlines may change, and actual costs will most likely exceed the budget.
2. The scenario of creating software from scratch in a relatively short time is not possible.
3. To implement the idea, a team of experienced specialists is needed. Its formation may require a lot of time and investment.

Conclusion

A successful launch of a fintech product requires a thoughtful approach to choosing an implementation model. Ready-made solutions are suitable for a quick start, SaaS — for reducing the technical load, and custom development will provide maximum flexibility and adaptation to specific business tasks. Regardless of the chosen path, the key factor remains cooperation with a professional team. A properly selected fintech software development partner will help to avoid critical errors, take into account important nuances, and build a sustainable product with growth potential. We recommend paying attention to Kindgeek, a reliable and well-established company in this field.