Why Financial Services Companies Prefer Custom Software
15 Jun 2018 | Jeffrey Palermo
In an industry as regulated as financial services, you would think there would be one or two standard solutions to the biggest issues you’re facing. Those regulations, however, are exactly why there can never be a “one-size-fits-all” software solution.
Here are some of the primary reasons why many, if not all, financial institutions tend to prefer custom developed software solutions over off-the-shelf ones:
There is no question financial services organizations are overwhelmed by the volume of reporting required by federal, state and even local governments. In other words, a custom developed software solution that comprehends the totality of an organization’s regulatory ‘footprint’ is often preferable to the lowest-common-denominator approach of off-the-shelf software. Well-crafted custom software can provide a tailored reporting workflow that addresses regulatory compliance issues more responsively, with less overall stress to your systems and your team.
There is no question the security of financial information is one of the top priorities for financial services companies. Criminal organizations and foreign nations hostile to the U.S. have sprung up in recent years with the sole purpose of coming up with ways to gain access to personal and corporate financial data through financial institutions’ systems. To stay ahead of the hackers, financial services companies need software solutions that include robust, continually-updated security measures, ensuring peace of mind to the organization, its investors, and its customers. Because financial organizations use a mix of cloud-based and on-site systems, software made specifically for that organization can go a long way toward keeping the hackers at bay.
Every blink brings another financial services company into view. Staying ahead of the competition, in terms of new services offered, risk abatement efforts and, especially, security, is essential to your organization’s long-term stability and growth. Building a better mousetrap than the competition, finding ways of creating and maintaining a competitive advantage, is mission critical in the financial services industry. Developing financial services software specific to your business and your customer needs will give you the edge you need to remain competitive.
Technology continues to grow and change. Ten years ago, who had heard of blockchain applications? Yet today, according to a report by PwC, “In 2016, nearly every major financial institution was experimenting with blockchain.” While staying on the bleeding edge of technology is not necessary, nor even wise, for financial service companies, it pays to be able to have a robust, stable and modern technology infrastructure. In other words, custom software solutions can be built to be responsive to changing times, changing regulations and changing technology.
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