In the rapidly changing world of Software as a Service (SaaS), speed to market and resource allocation are of paramount importance. The process of building an in-house investor accreditation system calls for considerable investment in terms of development, regulatory compliance, and ongoing maintenance. Fassport, with its streamlined, cost-effective, and regulation-compliant solution, offers an advantageous alternative. This allows SaaS companies to concentrate their efforts on their core offerings while leveraging Fassport’s expertise in investor accreditation.

Option 1: Build (In-House Development)

• Initial Development Costs: The process of creating an accredited investor verification tool from the ground up is an expensive endeavor. This involves significant investments such as salaries for dedicated developers, hardware and software for development, testing, and deployment, as well as ongoing maintenance and quality assurance costs. Considering that the average US developer salary is around $95k per year, the costs can escalate quickly. Furthermore, a substantial upfront investment is necessary for research, design, development, and testing. This is estimated to be in the range of $200,000 to $500,000, depending on the number of complex use cases your team intends to handle.
• Regulatory Compliance: Additional costs arise when ensuring the platform meets various regulations, such as Know Your Business (KYB), Know Your Customer (KYC), Office of Foreign Assets Control (OFAC), Politically Exposed Persons (PEP), Customer Identification Program (CIP), and Financial Crimes Enforcement Network (FINCEN). This also includes any separate lawyer or Certified Public Accountant (CPA) fees for accreditation.
• Maintenance and Updates: Once the platform is built, it doesn’t end there. Ongoing development costs to update the system based on regulatory changes or technology upgrades are a significant part of the expenditure.
• Total Cost of Ownership (TCO): Ongoing maintenance and support are crucial considerations when calculating the TCO. Building in-house means handling bug fixes, security updates, and new feature development, which can significantly increase the TCO. In contrast, purchasing a third-party solution includes maintenance and updates at the vendor’s expense, potentially reducing the TCO.
• Scale: Scaling an in-house solution requires additional development and can be resource-intensive. As your business grows, you may find it challenging to adapt your in-house solution to match your needs.

Option 2: Buy (Fassport Subscription)

• Subscription Costs: With Fassport, you get a predictable, scalable pricing model based on usage. This is significantly lower than the initial and ongoing costs of in-house development. It’s estimated that this option could lead to cost savings of up to 80% compared to alternatives.
• Compliance: One of the key advantages of Fassport is that it takes care of all regulatory compliance aspects. This reduces the need for extensive legal consultations, saving both time and money.
• Immediate Deployment: Fassport offers rapid integration and deployment, allowing businesses to leverage the investor accreditation system immediately. This eliminates the waiting period associated with building an in-house system.
• Continuous Updates: Another benefit of Fassport is that it ensures the platform remains compliant with regulatory changes and technology advancements without incurring additional costs.
• Scale: Fassport is designed to scale effortlessly with your business needs. It provides customizable features and a professional User Interface (UI) that easily adapts to your specific requirements.

Ultimately, the most important thing is time to market. If you choose to develop the system in-house, the development time can range from 6 to 12 months before a viable product is ready for deployment.

Fassport’s white-labeled platform is ready to go right out of the box. It can be set up in under a day for you to start using. API Integration of Fassport can be completed in a matter of weeks, significantly accelerating the time to market and enabling a faster realization of Return on Investment (ROI).

In conclusion, the decision to build or buy an in-house investor accreditation system involves a thorough consideration of potential costs, time, and risks, particularly in relation to regulatory compliance and the ability to quickly adapt to market changes. Opting for Fassport not only provides a cost-effective, compliant, and scalable solution but also allows companies to allocate their resources more efficiently towards innovation and core business strategies. This ultimately helps them accelerate growth and enhance their competitive advantage in the market.

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