The fintech industry has witnessed remarkable growth in recent years, transforming the way financial services are delivered and consumed. Now, entrepreneurs entering this sector often face a critical decision: whether to build a fintech business from scratch or integrate with existing platforms and technologies. Both options have their merits and challenges, and understanding the factors involved is crucial to make an informed decision. In this article, we will explore the pros and cons of building a fintech business versus integrating with established platforms.

Building a Fintech Business From Scratch:

1. Flexibility and Customization:

Building a fintech business from the ground up offers unparalleled flexibility and customization. Entrepreneurs have the freedom to create a unique product or service tailored to specific customer needs. This approach enables you to differentiate yourself from competitors and build a strong brand identity.

2. Full control:

Developing your own technology stack provides complete control over the infrastructure, security, and scalability of your fintech platform. This control can be advantageous in terms of data privacy, regulatory compliance, and adapting to evolving industry trends.

3. Intellectual Property and Competitive Advantage:

Building a proprietary technology platform allows you to own the intellectual property rights associated with your product. This can serve as a significant competitive advantage and potentially open opportunities for licensing or partnerships in the future.

However, building a fintech business has its challenges:

• Time and Resources: Developing a proper fintech platform requires significant time, expertise, and financial resources. Building a skilled development team, conducting research and development, and iterating on the product can be resource-intensive.

• Time-to-Market: Building a fintech business from scratch can result in a longer time-to-market. While you have control over the development process, the competitive landscape may evolve, potentially giving an advantage to integrated fintech solutions.

Integrating with Established Platforms:

1. Faster Time-to-Market:

By integrating with existing fintech platforms and APIs, entrepreneurs can leverage the infrastructure and technology already in place. This allows for faster market entry and the ability to provide immediate value to customers.

2. Access to Established Customer Base:

Integrating with established platforms can grant access to a pre-existing customer base, saving significant marketing efforts and costs. This can help accelerate user acquisition and generate revenue more quickly.

3. Focus on Core Competencies:

Integrating with existing platforms allows entrepreneurs to focus on their core competencies rather than getting bogged down in technical development. This can be particularly beneficial if your expertise lies in areas other than technology.

However, there are some challenges associated with integration:

• Limited Customization

Integrating with established platforms may limit your ability to customize the user experience because your product or service may have to conform to the existing platform's infrastructure and design, potentially affecting your brand identity.

• Dependence on Third Parties

Relying on external platforms means being dependent on their reliability, security measures, and ongoing support. Any issues or changes in the integrated platform can impact your business operations.

The decision to build a fintech business or integrate with existing platforms depends on various factors, including your resources, expertise, time constraints, and competitive landscape.

Building from scratch offers customization, control, and potential intellectual property advantages, but requires significant investments and time. Integration provides a faster time-to-market, access to existing customers, and focus on core competencies, but may limit customization and entail dependence on third parties.

Ultimately, the choice depends on whether or not you have enough resources, time and funds to build from the ground up.

Now that has been said, If you are a startup, fintech or corporate that needs to plug into an API, we can help you get started at Bankly. Send us an email at patnerships@bankly.ng, let’s guide you on the journey to starting your fintech business or embedding financial services into your business.