Platform vs Point Solution¶
Definition¶
The strategic choice between building/buying a comprehensive platform (KYC + fraud + compliance) versus specialized point solutions (best-in-class for specific function).
Comparison¶
| Aspect | Platform | Point Solution |
|---|---|---|
| Coverage | Broad (identity + fraud + compliance) | Deep (single capability) |
| Integration | Single vendor, unified API | Multiple vendors, integration overhead |
| Best-of-breed | Good across everything, great at nothing | Best at one thing |
| Cost | Lower total (bundled) | Higher total (multiple vendors) |
| Vendor lock-in | Higher | Lower |
| Flexibility | Limited to platform capabilities | Mix and match best vendors |
| Examples | Platform: Sumsub, Persona, Alloy | Point: iProov (liveness), Regula (documents), Socure (identity) |
Key Takeaways¶
Summary
- Fintechs prefer platforms — simpler, faster, one vendor to manage
- Large banks prefer best-of-breed — want top accuracy per component, accept integration complexity
- Orchestration layers (Alloy, Persona) enable best-of-breed with platform-like simplicity
- Market trend: platforms are winning for mid-market; specialists persist at enterprise