As the floor plan industry grows and becomes increasingly complex for banks to manage, the need for enhanced wholesale finance software has grown exponentially. Banks can no longer rely on manual processes and outdated systems to administer their lending operations. In response, they need to implement technological changes to the way they do business - but the question remains if they should deploy in-house resources to build their own new systems or contract a vendor with a pre-existing solution.

Choosing the right approach will vary depending on the unique circumstances of your bank’s resources and needs for its floor plan solutions. We believe banks need to carefully consider their options before diving into a new software build.

Considerations for Building Wholesale Finance Software

Does your bank already have a robust IT department and experienced software engineers? Do they have a successful track record of building out new software solutions? Do they have capacity to take on a new infrastructure project? Or will you need to hire a team to implement your solution?

Building a new software solution internally will require resources for development and ongoing maintenance. If your bank has an established team, this may be a viable option but assumes they have the bandwidth to dedicate time to a new project. Banks may need to expect longer timeframes for implementation in case of competing internal priorities. This could still be a costly and time consuming endeavor.

Considerations for Buying Wholesale Finance Software

On the other hand, wholesale finance software vendors are highly focused on their niche. They are more nimble in developing features and fixing bugs, especially as it relates to future maintenance. Vendors have already taken the time and monetary investment into researching, developing and testing their software. They often have a holistic view of the industry, ensuring that your bank is leveraging the most effective solutions.

Wholesale finance software vendors can help you scale more quickly - as you need more features or access to certain processes, you do not need to wait for your team to build it out. It can often be as simple as purchasing an add-on or accessing a previously unused feature. However, banks should evaluate the full scope of features available to them from a third-party vendor. If there are specific requirements or sets of features that are unique to your bank that vendors cannot or do not offer, it may be worthwhile to develop them internally.

Additional Considerations

From a regulatory perspective, buying a solution can also help your bank achieve compliance more quickly and efficiently. Your internal team does not have to constantly keep track of updates and spending on legal resources.

Banks must be mindful of choosing the right partner in place of an internal solution. An optimal vendor solution will be able to have flexible and customizable solutions that fit your bank’s needs. Purchasing a software solution that adds complexity will require even more partners or internal resources in the future.

If you have a portfolio and are looking to upgrade how you operate, consider contacting our team of experts today to learn more about the best technology solutions for your inventory financing needs. We are proud to work with Sopra Banking Software to offer a comprehensive, trustworthy, and user-friendly loan management system.