Single-Provider vs. Best-of-Breed ERP: Which is the Right Solution For You?
When it comes to choosing the right ERP system, financial services companies face an important decision: go with a single-provider platform that offers everything under one roof, or a best-of-breed approach that selects the top solution for each specific need.
Both strategies have their advantages and potential drawbacks.Â
For mid-sized financial services companies, the choice often comes down to priorities like integration, flexibility, scalability, and long-term support.
Single-Provider ERP: The Benefit of Integration
One of the main benefits of using a single-vendor ERP is the integration across all business functions. With a full suite of solutions under one ERP, businesses have the convenience of using a single platform for all core functions.Â
However, convenience can come at a cost, especially in an evolving financial landscape.Â
Some challenges that institutions may face with getting a single-provider ERP include:
- Vendor Lock-In: Companies deeply embedded in one ecosystem can struggle with flexibility, particularly during mergers and acquisitions.
- Dependency: Fintech conglomerates that offer a full suite of solutions may sunset core systems and shift directions without warning. This is the risk of relying solely on a single vendor.
- Solutions Not Created Equal: When a single vendor offers multiple applications, it is often through assembling multiple solutions and multiple layers of acquisitions. The result is that the competency of each solution may not give you the level of results you are looking for. What you’re left with is a system that could excel in one area but fall short in another.Â
- Lackluster Support: When problems arise, getting effective support is critical. Multiple rounds of acquisition can create high turnover in the support department, and support personnel are often trained across several applications. Having highly specialized support teams can solve a customer’s issues faster and with more efficiency.
Best-of-Breed ERP: Focused Innovation
Focused solution = focused innovation.
With a best-of-breed ERP, you pick and choose the individual solution that is right for each practice area.Â
This approach offers:
- Specialization: A bespoke ERP with hand-picked solutions means a specialized solution for each area, including Accounting, EPM, Compliance, and HR/payroll. This results in deeper functionality, stronger performance, and a better user experience.
- Flexibility: A best-of-breed approach enables organizations greater flexibility and personalization as they build out their tech stack strategy. It is easier to replace or upgrade components without overhauling the entire ecosystem.
- Future-Proofing: Instead of being locked into a single system that may eventually become discontinued, a best-of-breed approach gives your institution the flexibility to adapt and grow with your business.
Which Solution is Right for You?
Ultimately, there’s no universal answer.Â
A single-provider ERP can offer the ease of integration and centralized management. A best-of-breed ERP delivers flexibility and the ability to tailor each solution to a specific function.
No matter which approach you choose, a reliable provider is key.
Why Flexi?Â
Flexi has supported financial institutions for over 30 years, delivering powerful, dependable accounting tools built specifically for the needs of banks and credit unions.Â
Flexi’s software is tailored to the operational, compliance, and reporting demands while ensuring a seamless and efficient process.
Contact us for a free demo.