In a constantly evolving environment, financing companies face a major challenge: innovating to stay competitive while managing IT systems that are often complex and inflexible. Traditional approaches of either developing custom solutions from scratch ("Build") or acquiring standard software from the market ("Buy") show their limitations in terms of agility and time-to-market. To address these challenges, more and more players are turning to a hybrid "Buy + Build" approach that combines the best of both worlds: proven and configurable software components, complemented by specific developments. This strategy allows for greater flexibility and faster time-to-market, while controlling costs and risks. In this article, we will explore why "Buy + Build" is emerging as the new way forward for innovation in the financing sector, and how to successfully implement this approach.

The Limitations of Traditional "Buy" or "Build" Approaches

Historically, financing companies had two main options for their IT systems, each with its advantages but also significant limitations:

The Drawbacks of the "Build" Approach

Developing custom solutions allows for tools that are perfectly tailored to business needs. However, this approach has several major disadvantages:

• Significant costs and delays associated with specific developments, which tend to drift
• Technical debt that accumulates over time, making future maintenance and evolutions increasingly difficult and costly
• Lack of agility to quickly adapt to new market demands and regulatory changes

The Limitations of the "Buy" Approach

Purchasing standard software from the market provides access to proven functionalities at a lower cost. But this approach also has its drawbacks:

• Generic solutions poorly adapted to the specificities and constraints of each company, often requiring workarounds
• Limited customization possibilities without entering into costly specific developments
• Lack of flexibility to keep up with the rapid evolution of the company's offerings and business processes

The Need for a Third Way

Faced with these limitations, it has become critical for financing companies to find an alternative approach that reconciles agility and cost control. This is the key challenge of a "Buy + Build" strategy that more and more players are adopting, combining standard but configurable software components with complementary specific developments. We will detail in the rest of this article the advantages of such a hybrid approach and how to successfully implement it.

The Benefits of a Hybrid "Buy + Build" Approach

To overcome the limitations of "Build" and "Buy", more and more financing companies are opting for an intermediate approach combining off-the-shelf software components with complementary specific developments. This "Buy + Build" strategy offers many advantages:

A Winning Combination of Robustness and Flexibility

The main strength of "Buy + Build" is the ability to rely on a proven and efficient application base, while retaining the possibility to complement it with specific developments to closely match business needs. This is particularly valuable for high-growth companies that need to be able to support increasing volumes while adapting to new products or markets.

For example, Orion Leasing chose the Basikon platform for its international expansion. Thanks to its high configurability, Basikon allowed them to easily adapt to the specifics of each country (connections to local credit bureaus, compliance with regulations, etc.) while relying on a robust and scalable contract processing engine. As a result, they increased their leasing portfolio by 60% in one year!

Accelerated Time-to-Market for New Offerings

With an application base already operational, "Buy + Build" significantly reduces the time-to-market for new offerings. Instead of starting from scratch, it's just a matter of configuring the product and developing only the specifics. This is a decisive advantage for players like Leascorp who need to regularly launch new services for their partners. Thanks to Basikon, they can now deploy a new channel in less than a week instead of several months.

Better Cost and Risk Management

By capitalizing on existing software components and targeting specific developments on added value, the "Buy + Build" approach allows for better cost and risk management compared to a from-scratch project. This is a crucial issue for startups like Calvin that need to both stay within budget and meet deadlines to succeed. With Basikon, they were able to set up a complete leasing platform in just 4 months, freeing themselves from low value-added tasks.

The "Buy + Build" approach thus appears as a particularly relevant third way for financing companies seeking to reconcile agility and cost control. But how can it be concretely implemented to reap all the benefits? This is what we will explore in the next section.

How to Implement a "Buy + Build" Strategy Step by Step

Adopting a "Buy + Build" approach cannot be improvised. To reap all the benefits, it is important to follow a structured approach in several key steps:

1\. Precisely Define the Need and Priorities

The first step is to assess the existing situation (processes, tools, pain points, etc.) and clearly qualify the short and medium-term needs, involving all stakeholders (business, IT, partners, etc.). The objective is to clearly identify the standard scope that can be covered by market components, and the specific needs that will require ad hoc developments.

This is the work done by Arrawaj, a major microfinance association in Morocco, to merge the systems of the foundation and its subsidiary into a single platform capable of managing the entire financing and payment process. By precisely qualifying their needs, they were able to define the right mix between the standard functionalities of the Basikon solution and the specificities to be developed.

2\. Choose an Open, Flexible and Secure Platform

The choice of the solution that will serve as the foundation for the ""Buy + Build"" strategy is crucial. It is essential to ensure that the selected platform is:

• Open, with an API architecture allowing easy integration of third-party components and distribution of financing services in seamless digital journeys
• Flexible, offering advanced capabilities for parameterization and customization of business processes without development, via no-code/low-code tools
• Secure, robust and scalable to support growth and meet the regulatory requirements of the sector

This is what Solfiz found with Basikon to digitize its equipment rental business. The platform allows them to finely configure their workflows and contracts, easily connect their partners, and industrialize their processes in a secure environment.

3\. Adopt an Agile and Iterative Approach

To get the most out of ""Buy + Build"", it is essential to adopt an agile project approach, proceeding in an iterative and incremental way:

• Start with core processes that can be quickly covered by configuring the solution
• Identify quick wins for immediate optimization (automation of manual tasks, elimination of re-entries, etc.)
• Then progressively enrich the platform with specific functionalities and connectors with the ecosystem

This is the approach implemented for example by Calvin, which deployed in only 4 months with Basikon an end-to-end digital leasing platform. By starting with digitizing core processes, then adding portals for its partners and APIs to its banks, Calvin was able to very quickly offer a seamless digital experience to its customers.

By following these best practices, the implementation of a "Buy + Build" strategy allows for quickly equipping oneself with an open and agile digital platform, key to an augmented customer relationship. Many examples of recent successes in the financing sector attest to this, as we will see.

Key Success Factors of a "Buy + Build" Approach

Beyond the implementation approach, the success of a "Buy + Build" strategy depends on several key factors that are important to consider:

The Importance of a Reliable and Committed Technology Partner

The choice of the partner who will provide the base platform is crucial. Beyond the technical aspects, it is essential to ensure its solidity, its capacity for long-term support and its willingness to co-innovate.

This is what Orion Leasing found with Basikon for its international expansion. Thanks to the commitment and flexibility of the Basikon team, the project could be completed in only 4 months, continuously adapting to the specific needs of Orion Leasing in each market. This trusted partnership allowed them to increase their portfolio by 60% and conclude a strategic partnership with Apple in the Baltic region.

The Need for Agile and Collaborative Project Governance

Combining specific developments with the integration of a market solution requires particularly agile and collaborative project management, transparently involving all stakeholders (business, IT, partner, etc.).

Calvin particularly appreciated the quality of the support from the Basikon team in driving the project. Beyond the technical dimension, a true partnership was formed, with the Basikon team playing an advisory role to challenge and optimize Calvin's processes. This close collaboration was a key factor in meeting the tight project deadlines.

The Challenge of Well-Conducted Change Management

Adopting a new platform that transforms working methods represents a major change for teams. It is crucial to anticipate and support this change management to ensure employee buy-in.

This was an important issue for Arrawaj whose project with Basikon involved merging the systems and teams of two entities. Thanks to regular training and communication actions, and the ergonomics of the Basikon platform, employees quickly and massively adopted this new unified work environment.

By keeping these key success factors in mind, and drawing inspiration from the best practices of players who have successfully implemented it, any financing company can benefit from a ""Buy + Build"" strategy to gain agility and competitiveness. This is the key to successful digital transformation and making innovation a sustainable competitive advantage.

Examples of Successes of Companies that have Adopted "Buy + Build"

Many financing companies have already chosen a "Buy + Build" approach to gain agility and competitiveness. A look back at some inspiring success stories:

Leascorp: Gaining Flexibility to Boost its Partner Network

Leascorp, a financial leasing specialist, chose Basikon to support the strong growth of its business. Thanks to the flexibility of the platform, Leascorp can now finely configure its workflows and offer its partners either an integrated portal to generate contracts, or a direct connection to their CRM via API.

Result: a 300% increase in its partner network and a significant gain in productivity for the teams, who can focus on higher value-added tasks. Leascorp can now deploy a new channel in less than a week, compared to several months before.

Arrawaj: Unifying its Systems for More Efficiency and Synergies

The Arrawaj Foundation, a major microfinance player in Morocco, selected Basikon to merge the systems of the foundation and its payment subsidiary into a single digital platform. In just 18 months, Basikon deployed a complete solution covering the entire process, from contract management to accounting, including payments and collections.

With this unified platform, the Arrawaj Foundation and its subsidiary have significantly improved their operational efficiency and can now launch new products in an accelerated manner. The solution has also enabled them to offer customers a seamless digital experience with a mobile application.

Orion Leasing: Leveraging an Agile Platform to Conquer New Markets

Orion Leasing, a Lithuanian leasing specialist, called on Basikon to support its international expansion. Thanks to the adaptable nature of the platform and the tailored approach of the Basikon team, Orion Leasing was able to quickly deploy in new countries by easily integrating with local ecosystems (credit bureaus, registers, KYC, etc.).

In less than a year, Orion Leasing increased its portfolio by 60% and its partner network by 80%. The platform also allowed them to fully digitize the customer journey with a self-care portal and online subscription tools.

Calvin: Starting its Business on a Solid and Scalable Foundation

To launch its leasing brokerage business in Switzerland, Calvin needed a robust and flexible platform, capable of easily connecting to its partner banks. They chose Basikon for its ability to cover all needs (partner relationship, contract management, accounting, etc.) in a simple and modular way.

In just 4 months, Calvin was able to start its business with a fully digitized system, from simulation to electronic signature, including contract management. A real growth accelerator that allows them to focus on the relationship with their partners and customers.

Solfiz: Transforming its Model for More Resilience and Performance

Solfiz, an equipment rental specialist, chose Basikon to digitize its business and gain agility in the face of the Covid crisis. Thanks to the great flexibility of the platform, Solfiz was able to evolve its model by integrating new services and managing a growing number of partners in a fluid and secure way.

The migration of its existing partners to the new platform was done quickly, with significant improvements in terms of process fluidity and security. Solfiz can now add new partners and products in a simple and fast way.

These success stories demonstrate the relevance of a "Buy + Build" strategy for financing companies seeking to combine agility and cost control. By relying on an open, flexible and secure platform like Basikon, and by co-constructing their solution with a committed partner, these players have been able to transform their information system into a real lever for growth and innovation. An inspiring approach for the entire profession!