Should your bank build or buy credit review software?

Giulio Camerini, Steve Krase
6/28/2022
Should your bank build or buy credit review software?

Many internal loan review groups are increasingly doing more with the same or fewer resources. When such demand begins to seem impossibly heavy, tech-based solutions and upgrades can streamline processes and enhance the capabilities of review specialists.

Two options exist for upgrading or replacing a current loan portfolio analysis system:

  • Building a customized platform in-house, perhaps with assistance from a third party
  • Purchasing an existing platform from a third party

Ask these six questions before launching a project to build credit review software

Ask these six questions before launching a project to build credit review software

Many banks explore proprietary, custom-built credit review software through in-house or third-party resources, but the potential flexibility of this solution can come with considerable costs or drawbacks.

On the surface, a completely customizable, in-house credit review software platform can have the benefit of providing exactly what your loan review group is looking for. But not every bank is equipped with the scope and resources to make this option work best in the long run.

Before proceeding with an in-house credit review software build project, consider these questions:

1. Does your bank have the resources to build and implement your own solution?

The build process will require internal resources, but standard operations must still be able to function effectively.

2. Do you have a comprehensive plan for what the platform will provide?

Developers can’t be expected to fulfill expectations if they don’t have a full, concrete vision of what you want.

3. How long would a solution take to develop and test?

Delays and setbacks are inevitable, so generally it’s best not to rely on best-case estimates.

4. Would your solution be scalable?

Ideally, the solution could accommodate a potential increase in data and users, even on short notice.

5. Do you have the resources for future maintenance, upgrades, and enhancements?

Solutions continually evolve, and your system will need to stay up to date to prevent a repeat cycle of rebuilds and potential security flaws.

6. How likely is it that the builders of your platform will be around in the future to perform fixes and upgrades?

A specialized system requires specialized knowledge, and turnover might leave your bank without the expertise needed. Without this expertise, you might have to start from scratch or reach out to a third party, which means restarting the process.

In addition to exploring these questions, it’s important to accurately estimate the cost of a software build project. Many banks underestimate the true costs by assuming best-case scenarios and overlooking potential complications and hidden long-term costs. The costs of delays, scope creep, and future maintenance easily can cause a software build project to balloon far beyond its original budget.

Consider the full capabilities of existing platform options

Consider the full capabilities of existing platform options

Implementing a platform licensed from a third-party vendor can eliminate many of the concerns that accompany an in-house build, but it’s still important to clarify precisely what the credit review software can provide.

Questions to ask include:

  • Does this software meet our loan review needs? If not, can it be easily adjusted to do so?
  • What types of data can be entered into the system?
  • How extensive is the implementation process in terms of time, effort, and complexity?
  • Does this organization collaborate with its users and frequently update the product?
  • Where is data stored, and what security measures will protect it?
  • Who will be responsible for addressing any problems within the system?
  • What is the time frame for vendor support and future upgrades for this platform?

Moving forward with a third-party platform can help keep expectations reasonable and overall costs more fixed compared to the uncertainties of a complex, custom software build project.

What can your bank expect from Crowe Credit360 for Loan Review Departments?

What can your bank expect from Crowe Credit360 for Loan Review Departments?

Our specialists bring deep industry experience to banks looking for comprehensive yet well-tailored portfolio analysis software solutions. We have designed a reliable, flexible, and heavily supported credit review platform, and we also use it ourselves.

We can have your team ready to go on the program within a day, eliminating painful implementation exercises. From there, industry loan review specialists will help you train your team on the credit review software and share valuable peer insights along the way.

See how Crowe Credit360 for Loan Review Departments can help your team save time and money.

Have more questions?

Find out what a comprehensive, cost-effective credit review software solution looks like for your bank. Schedule a consultation with a Crowe specialist to assess your loan review department’s needs and learn which technology solutions can meet them.
Guilio Camerini
Giulio Camerini
Principal, Financial Services Consulting
Steve Krase
Steve Krase
Principal, Financial Services Consulting