Does Your Bank Need a Software Tool or a Solution Approach?

In this era of information technology (IT), banking and financial institutions, in order to stay competitive, organizations are expecting to gain maximum advantage of rapidly advancing innovations in the IT industry. Due to competition, they are adopting Software and Solutions rapidly in their business processes to achieve efficiency, serve their customers satisfactorily and expand & upgrade their services.

But they should aware about the implementation of new technology risks, and the worst case would be the disruption of service and its consequential financial effects. When an organization seeks to enhance itself by implementing a new technology, one of the first decisions they have to make is whether they should be looking at a comprehensive solution or a tool. As a business that develops both banking tools and solutions, we are uniquely equipped to explain the differences between the two. Making the right choice becomes trivial once the differences between solutions and tools are clear.

Tools vs. Solutions

The simplest difference between the nature of tools and solutions can be summed up as follows:

Tools deliver a specific functionality, while solutions use a combination of tools to solve a problem or improve a process

We often have to make the same choice – between a tool and a solution – in our personal lives too. If we notice a small problem, we usually choose a tool to help us solve it. The tool can be duct tape which we use to patch something together. We may use screwdrivers to open something up and see why it isn’t working. All items like screwdrivers, tape, wrenches, and saws are tool. They have a single function which can help us in different ways.

When the problem is larger than our ability to solve it with the tools, we look for a solution instead. If your house needs some wiring done you may feel uncomfortable working on it yourself, because you are not aware of all the safety requirements of working on electrical equipment. You then get in touch with an electrician. The electrician comes to your home with their set of tools and uses them to solve the issue. Calling the electrician is the solution.

There is a similar difference when it comes to technology solutions and tools. Software tools have limited functionality while solutions aim to solve multiple problems in the same domain. When you look at the products and solutions available on our website you will find both software solutions and tools. We will use our Insight360 tool and risk management solution as examples. Both of them are software solutions to manage risks, but their scope is quite different.

Insight360 – a Predictive Risk tool

Insight360 is a risk prediction tool. It has an extensive set of features which are used to help predict risks. It can take internal data that can predict risks such as KPIs, risk reports, complaints, risk assessments etc. and can combine it with external data such as KRIs, market data, regulatory updates etc. This allows the tool to intelligently predict how risks will affect the different business units within your organization.

Insight360 is a tool because it has a specific purpose – predicting risks. It can be used in conjunction with our risk management solution, but it can also be used on its own. If an organization is only interested in getting risk predictions and does not want a solution to manage overall enterprise risks, then they should use such a tool.

Predict360 Enterprise Risk Management – a Risk Management Solution

We also offer the Predict360 Risk Management solution for enterprises. The risk solution has different aims than the Insight risk tool. The solution aims to automate and streamline the complete risk management process. You will find features and automation related to every step of risk management in the solution. It can assess risks, track risks, help collaboration for risk management, make enterprise risks visible for the management, and much more.

The Predict360 Enterprise Risk Management can even integrate data from Insight360 for enhanced functionality. If an organization is interested in improving its risk management framework and not a specific risk management functionality then they should be looking for solutions instead of tools.
Software tools have limited functionality while solutions aim to solve multiple problems in the same domain. Click To Tweet

The advantages of using tools

The biggest advantage of using a tool is that they are simpler to implement and use. In the context of risk management, risk management tools can be implemented instantly and also cost lower than risk management solution. Tools are an excellent way for businesses to dip their toes in risk management technology. They can try a technology without requiring an extensive overhaul of business processes or any training.

The advantages of using solutions

Solutions can make a profound change in the way a business operates. A risk management solution completely overhauls and streamlines the risk management process. While it may take a bit longer to implement and will usually require a bigger commitment than a tool, the functionality is also exponentially increased.

Making the right choice

Any business that wants to ensure that it is picking the right software between a tool and a solution needs to first look at its own business requirements. Here are three basic factors that need to be considered:

Scope

Does the organization need a specific problem solved or is there a need of improving a process or department? If a specific problem needs to be solved, then management should opt for a tool which solves that problem. If there is a need for improving the efficiency and effectiveness of a process or department than management should look at available solutions.

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Budget

If you have a small budget to work with, a tool may be more suited for you. Solutions generally require a bigger budget commitment.

Commitment

Most tools do not require any training or implementation, while solutions require varying degrees of both depending on the solution you choose. Cloud solutions are easy to implement but on-site solutions can take a lot of time and resources.

If you are looking for a governance, risk, or compliance related solution then get in touch with our GRC experts today – they will make sure that you know all your options and can make an informed decision.