In-house system or Evitec Solutions Bonds? Making the right choice for covered and sustainable bond pool management
At Evitec Solutions, we’re often asked a key question by banks and issuers working with covered and sustainable bonds: Should we build our own system in-house or buy a proven, specialized solution? It’s a decision with far-reaching implications, and there’s no one-size-fits-all answer. Drawing on years of industry expertise and client collaborations, we’ve gathered insights to help weigh the pros and cons of these two approaches. Along the way, we’ll highlight how Evitec Solutions Bonds (ES Bonds), available as both a SaaS and on-prem solution, offers a powerful alternative to tackle the unique challenges of covered and sustainable bonds pool management.
The case to build an in-house system
Why build? Institutions often consider developing their own system to address specific needs and maintain complete control. While this approach can offer strategic advantages, it comes with significant challenges.
The Pros:
- Customization at its core
Institutions with complex structures or workflows may lean towards building an in-house system, offering full customization to fit their specific processes. - Control every detail
With an in-house solution, you’re in the driver’s seat. This allows for quick adjustments and prioritization of features aligned with your internal goals. - Full ownership
Owning a proprietary system means your organization retains full rights to the software. Over time, this can become a strategic asset, particularly if it’s leveraged for multiple business functions.
The Cons:
- High costs and maintenance burden
Developing and maintaining an inhouse-system requires substantial financial and human resources. From hiring skilled IT teams to ongoing updates, the costs quickly add up. Staying compliant with evolving EU regulations, including EU Green Bond Standard, further strains resources. - Time-consuming development
Building an in-house system isn’t just expensive – it’s time-intensive. Development can take months, even years, delaying your ability to meet compliance deadlines or capitalize on market opportunities. - Regulatory complexity
Keeping pace with covered bond legislation, credit rating agency demands, EU Green Bond Standard, ESG requirements, and the latest taxonomy updates is a full-time job. Internal teams must juggle this with other priorities, leading to potential inefficiencies.
The case to buy a ready-made solution
Why buy? A specialized solution like ES Bonds offers immediate value, combining automation, compliance, and flexibility to meet the demands of covered and sustainable bond pool management.
The Pros:
- Fast deployment
ES Bonds is a purpose-built system, designed specifically for covered and sustainable bonds pooling. Especially SaaS solution is ready for rapid deployment, helping institutions achieve compliance and operational efficiency from day one. - Lower Total Cost of Ownership (TCO)
While purchasing software involves upfront costs, the overall expense is often lower than building in-house. The solution eliminates development costs, reduces reliance on internal IT teams, and provides expert-led updates. - Stay ahead of regulation
With built-in features for compliance, our solution ensures you’re always up to date with the latest EU regulations, from ESG and green taxonomy alignment to the evolving covered bond legislation and EU Green Bond Standard. No need to dedicate internal resources to monitoring every change. - Scalable and flexible
Designed for growth, our solution adapts to your evolving needs, whether expanding functionalities or scaling operations. Available as SaaS or on-prem, it fits seamlessly into diverse IT environments.
The Cons:
- Less customization
While ES Bonds covers a wide range of use cases, it may not accommodate every unique workflow. However, our team works closely with clients to ensure the solution aligns with their needs. - Vendor dependency
Some institutions worry about relying on third parties for updates and support. At Evitec Solutions, we address this with dedicated service, ensuring seamless integration and long-term partnership.
Comparing the scenarios
- Compliance and risk management
Staying compliant with EU regulations is a cornerstone of both covered and sustainable bond management. ES Bonds provides automatic updates, reducing the burden on internal teams. Building in-house means shouldering this responsibility yourself – a challenge for even the most resourceful organizations. - Cost efficiency
In-house development demands heavy investment, from initial build-out to maintenance. Purchasing ES Bonds provides cost predictability, freeing resources for strategic initiatives. - Speed to market
With a ready-to-deploy solution like ES Bonds, banks can act quickly on market opportunities and regulatory shifts. Building in-house, by contrast, risks delays that can hinder growth. - Future-proofing
ES Bonds offers continuous support and enhancements to keep you competitive in a rapidly evolving market. Maintaining this edge with an in-house system can require constant effort and expense.
A balanced approach
The decision to build or buy depends on your institution’s priorities. If complete control and deep customization are essential, building in-house might seem appealing – but be prepared for the associated costs and complexities. For institutions seeking a robust, scalable, and compliant solution, ES Bonds offers a compelling alternative.
Whether SaaS or on-prem, our solution is designed to empower banks and issuers with the tools needed to navigate covered and sustainable bond management confidently. With automation, built-in compliance, and expert support, it balances the best of control and convenience – enabling you to concentrate on what matters most.
