{"id":14071,"date":"2025-07-15T14:19:17","date_gmt":"2025-07-15T12:19:17","guid":{"rendered":"https:\/\/www.contovista.com\/news_latest-news\/the-fastest-way-for-banks-to-leverage-the-potential-of-transaction-data\/"},"modified":"2025-07-21T15:12:52","modified_gmt":"2025-07-21T13:12:52","slug":"make-or-buy","status":"publish","type":"post","link":"https:\/\/www.contovista.com\/en\/news\/latest-news\/make-or-buy\/","title":{"rendered":"The fastest way for banks to leverage the potential of transaction data"},"content":{"rendered":"<section height=\"710\" class=\"hero hero--diagonal hero--blue logo-color logo-color-white no-lazy\">\n  <div class=\"container container--standard\">\n    <div class=\"hero__wrapper flex row jscb\">\n\n            <div class=\"hero__info  hero__info--small hero__info--for-standard-image\">\n\n        <!-- Article data  -->\n        \n                    <a \n            href=\"https:\/\/www.contovista.com\/en\/news\/latest-news\/\" \n            class=\"hero__go-back-link\">\n            back to the overview          <\/a>\n          <div class=\"article__data article__data--postpage flex row aic\">\n            <span>15.07.2025<\/span>\n\n                        <span>10 min read<\/span> \n          <\/div>\n                <!-- Article data  -->\n\n        <!-- Titles  -->\n         \n\n                  <h2 class=\"white\">Develop it in-house or purchase it?<\/h2>\n                <!-- Titles  -->\n\n        <!-- Description  -->\n                  <p class=\"white hero__info-description-desktop\">The fastest way for banks to leverage the potential of transaction data<\/p>\n                          <p class=\"white hero__info-description-mobile\">The fastest way for banks to leverage the potential of transaction data<\/p>\n                <!-- Description  -->\n\n        <!-- Button  -->\n         \n        <!-- Button  -->\n\n        <!-- Clients slider  -->\n                <!-- Clients slider  -->\n\n\n      <\/div>\n\n      <!-- Image \/ Lottie  -->\n              <div class=\"hero__image hero__image--standard\"> \n          <img decoding=\"async\" \n            class=\"no-lazy\"\n            src=\"https:\/\/www.contovista.com\/wp-content\/uploads\/2025\/07\/20250623-Contovista-Blog-build-or-buy_header.jpg\" \n            alt=\"\"\n            caption=\"\"\n            description=\"\"\n            fetchpriority=\"high\">\n        <\/div> \n            <!-- Image \/ Lottie  -->\n\n    <\/div>\n  <\/div>\n<\/section> \n\n\n \r\n\r\n<div class=\"breadcrumbs\">\r\n  <div class=\"container\">\r\n    <div class=\"breadcrumbs__wrapper flex row aic\">\r\n      <nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav>    <\/div> \r\n  <\/div>\r\n<\/div>\r\n\r\n\r\n<section class=\"title-copy section logo-color logo-color-dark\"  >\r\n  <div class=\"container\">\r\n    <div class=\"title-copy__wrapper\">\r\n          <h2>Partnering with External Specialists: The Smart Way to Develop Customer-Centric Solutions<\/h2>\r\n          <div class=\"textbox\">\r\n        <p>Personalised offers and value-added services delivered precisely when they are relevant to everyday life \u2013 that\u2019s what today\u2019s banking customers expect from their financial institutions.<\/p>\n<p>This is now possible thanks to AI-powered transaction data analysis. <strong>Evaluating account activity provides the insights needed for truly individualised customer experiences<\/strong>. Yet only a few financial institutions have the necessary technological capabilities in-house to achieve this.<\/p>\n<p>Against this backdrop, banks urgently need to determine how to develop customer-centric offerings as efficiently and quickly as possible. Should they build the necessary AI capabilities for transaction data analysis <strong>in-house<\/strong>, or would it be better to <strong>purchase external solutions<\/strong>?<\/p>\n<p>In the following, we take a closer look at the all-important \u201cbuild or buy\u201d question. We also explain why the smart answer for many financial institutions is not either-or, but rather a partnership. By taking this deliberate strategic approach, banks can benefit from external partners in a quick, agile, and flexible manner.<\/p>      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n<section class=\"title-copy section logo-color logo-color-dark\"  >\r\n  <div class=\"container\">\r\n    <div class=\"title-copy__wrapper\">\r\n          <h2>The Pros and Cons of In-House Development<\/h2>\r\n          <div class=\"textbox\">\r\n        <p>At first glance, <strong>developing in-house<\/strong> digital capabilities for transaction data analysis <strong>offers numerous advantages<\/strong>. The institution remains independent of third-party providers and can prioritise the fulfillment of its specific requirements. However, there are <strong>significant disadvantages<\/strong> to bear in mind:<\/p>\n<ul>\n<li><strong>Lack of resources and talen<\/strong>t: Specialists with the necessary skills for developing and maintaining systems are in short supply, and banks often lack sufficient IT resources.<\/li>\n<li><strong>Time to market<\/strong>: Software development and training AI models require a significant amount of time and numerous iterations. Rolling out new offerings gets delayed, and internal expectations, such as those from the board of directors, cannot be met quickly enough.<\/li>\n<li><strong>High costs<\/strong>: The total cost of ownership (TCO) for an in-house development is substantial, due to high initial investments as well as ongoing expenses for further model development and maintenance.<\/li>\n<li><strong>Technological complexity<\/strong>: Developing AI applications in-house places high technical demands on the company and carries risks. Mistakes can be extremely costly.<\/li>\n<li><strong>Innovation backlog<\/strong>: Launching the solution is just the beginning \u2013 banks must continuously develop and improve their applications.<\/li>\n<li><strong>Long-tail effect<\/strong>: Fully enriching transaction data is extremely challenging due to the long-tail effect. In other words, the first 70% of transactions are relatively easy to categorise. However, the effort required increases exponentially for the remaining transactions, as significantly more data is needed for accurate matching. This area, which is difficult to categorise, often includes one-off but particularly important expenses (<a href=\"https:\/\/www.contovista.com\/en\/news\/focus-topics\/data-driven-banking-in-practice\/#longtail\" target=\"_blank\" rel=\"noopener\">read more about the long-tail effect here<\/a>).<\/li>\n<\/ul>      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n<section class=\"title-copy section logo-color logo-color-dark\"  >\r\n  <div class=\"container\">\r\n    <div class=\"title-copy__wrapper\">\r\n          <h2>The Smarter Approach: Buy, But With the Right Partner<\/h2>\r\n          <div class=\"textbox\">\r\n        <p>The disadvantages and risks listed above show <strong>that a complete in-house development is only worthwhile if the financial institution already has established teams and the appropriate technology platforms in place<\/strong>.<\/p>\n<p>If these prerequisites aren\u2019t met, <strong>collaboration with FinTechs like Contovista is a viable option<\/strong>. They solve the technological and business challenges of in-house development <strong>with ready-to-use SaaS applications for API- and AI-based transaction data analysis.<\/strong><\/p>      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n<section class=\"image section logo-color logo-color-dark\" >\r\n  <div class=\"container\">\r\n    <div class=\"image__wrapper\">\r\n\r\n  \r\n      <img decoding=\"async\" \r\n        src=\"https:\/\/www.contovista.com\/wp-content\/uploads\/2025\/07\/20250623-Contovista-Blog-build-or-buy_infographic_DE.jpg\" \r\n        alt=\"\"\r\n        caption=\"\"\r\n        description=\"\">\r\n\r\n      \r\n              <p class=\"text14 dark-sky-50\">Figure: Advantages and disadvantages of independent development vs. external purchase<\/p>\r\n      \r\n    <\/div>\r\n  <\/div>\r\n<\/section>  \r\n<section class=\"title-copy section logo-color logo-color-dark\"  >\r\n  <div class=\"container\">\r\n    <div class=\"title-copy__wrapper\">\r\n          <h2>With Contovista, \u201cBuy\u201d Becomes the Smart Decision<\/h2>\r\n          <div class=\"textbox\">\r\n        <p>Given these benefits, buy is likely to be the much smarter choice <strong>for<\/strong> many <strong>established financial institutions<\/strong>.<\/p>\n<p>With Contovista, <strong>buy becomes the smart decision<\/strong>, enabling banks to actively shape the solution while meeting specific Swiss regulatory requirements.<\/p>\n<ul>\n<li><strong>Active involvement<\/strong>: Banks can provide input on the solution and development roadmap within the Contovista community, e.g. through the Product Board.<\/li>\n<li><strong>Short time-to-market<\/strong>: Using ready-to-deploy applications reduces the time needed to develop and roll out customer-centric offerings.<\/li>\n<li><strong>Precise categorisation approach<\/strong>: Contovista delivers transaction data analysis with outstanding accuracy of 98% thanks to state-of-the-art algorithms. The solution is continuously being improved, with new releases every six months. This ensures that the latest market trends, such as hyper-personalisation and smart AI applications, are future-proofed.<\/li>\n<li><strong>Shared learning effect<\/strong>: Contovista&#8217;s approach delivers better results for banks thanks to shared insights. Partner banks send non-personal data (non-CID data) to our data centre. This much larger database allows the algorithms to be further refined, which benefits all institutions.<\/li>\n<li><strong>Optimal compliance<\/strong>: Swiss data protection and compliance requirements are met, with operations taking place in a Swiss data centre.<\/li>\n<li><strong>Tailor-made options<\/strong>: Our solution enables attractive services that are precisely tailored to end customers in Switzerland and their specific needs, e.g. in the areas of taxation or pension provision.<\/li>\n<li><strong>Integration into the ecosystem<\/strong>: Contovista collaborates with other technology providers, facilitating the integration of new capabilities (e.g. CRM, ERP, workbenches).<\/li>\n<li><strong>Experienced partner<\/strong>: Contovista has been on the market for over twelve years and is the market leader in Switzerland.<\/li>\n<li><strong>Made in Switzerland<\/strong>: Contovista\u2019s solutions are developed in Switzerland, ensuring exceptional quality, security, and reliability. Local development and support guarantee compliance with strict data protection and privacy regulations.<\/li>\n<\/ul>      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n<section class=\"quote section logo-color logo-color-dark\"  >\r\n  <div class=\"container\">\r\n    <div class=\"quote__wrapper\">\r\n      <p class=\"dark-sky-80\">\u00abModular architecture is crucial for banks, as it allows them to integrate technological innovation into their existing systems gradually and in a controlled manner \u2013 without the need for extensive restructuring. This is one of the key benefits of Contovista\u2019s solution: it can be deployed as a ready-to-use all-in-one package or configured by the financial institution according to individual needs and expanded gradually over time\u00bb<\/p>\r\n      <p class=\"fw700\">Faheem Ullah, Head of Technology, Contovista<\/p>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n\r\n<section class=\"title-copy section logo-color logo-color-dark\"  >\r\n  <div class=\"container\">\r\n    <div class=\"title-copy__wrapper\">\r\n          <h2>Build or Buy? <\/h2>\r\n          <div class=\"textbox\">\r\n        <p><strong>The Answer is Collaboration!<\/strong><\/p>\n<p>The takeaway for ambitious banks looking to accelerate their digital transformation: those who take their data strategy seriously shouldn\u2019t think in rigid either-or terms, but in terms of ecosystems. Banks don\u2019t have to develop everything themselves \u2013 but they should buy strategically and focus on close collaboration with their technology providers.<\/p>\n<p>Contovista&#8217;s solution offers <strong>maximum functionality with minimum effort<\/strong>:<\/p>\n<ul>\n<li><strong>Speed<\/strong>: Easy integration, fast results<\/li>\n<li><strong>Scalability<\/strong>: Performance reserves and modular expansion, including in the SaaS model<\/li>\n<li><strong>Future-proof<\/strong>: Continuous development and new AI features<\/li>\n<\/ul>\n<p>Contovista opens up entirely new possibilities through forward-looking finance management and analytics solutions, especially when it comes to customer centricity.<\/p>      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n<section \r\n  style=\"background: linear-gradient(90deg, rgba(34, 236, 187, 0.5) 0%, rgba(6, 78, 96, 0.5) 28.12%, rgba(0, 41, 75, 0.5) 100%),url(https:\/\/www.contovista.com\/wp-content\/uploads\/2022\/10\/6X8A7165-4-scaled.jpg);background-position: center; background-repeat:no-repeat; background-size: cover;\"\r\n  class=\"section contact contact--diagonal-down contact--footer-stick logo-color logo-color-white\"  >\r\n  <div class=\"container\">\r\n    <div class=\"contact__wrapper\">\r\n          <h2 class=\"white\">Interested?<\/h2>\r\n          <p class=\"fw700 white\">Find out how you can turn transaction data into smarter customer experiences &#8211; without effort-consuming in-house development.<\/p>\r\n\r\n      <!-- Button  -->\r\n       \r\n                  <a \r\n        href=\"https:\/\/www.contovista.com\/en\/contact\/\" \r\n        class=\"btn btn--gradient\"\r\n        data-modal=\"modal-contacts\"\r\n        target=\"_self\">\r\n        Contact our experts \r\n        <span class=\"btn--gradient--span1\"><\/span>\r\n        <span class=\"btn--gradient--span2\"><\/span>\r\n      <\/a>\r\n      \r\n            <!-- Button  -->\r\n\r\n\r\n    <\/div>\r\n  <\/div>\r\n<\/section>","protected":false},"excerpt":{"rendered":"<p>Should financial institutions build the necessary AI capabilities for transaction data analysis themselves &#8211; or would they rather buy in some external solutions? We analyze the critical \u201cbuild or buy\u201d question!<\/p>","protected":false},"author":4,"featured_media":13975,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-14071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news_latest-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/posts\/14071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/comments?post=14071"}],"version-history":[{"count":7,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/posts\/14071\/revisions"}],"predecessor-version":[{"id":14086,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/posts\/14071\/revisions\/14086"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/media\/13975"}],"wp:attachment":[{"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/media?parent=14071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/categories?post=14071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.contovista.com\/en\/wp-json\/wp\/v2\/tags?post=14071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}