Short answer
The key difference is not only where the model runs, but also data boundaries, identity and policy controls, model approval, audit, operating ownership and integration with enterprise systems.
Why this matters
This design choice directly affects correctness, control, integration and auditability.
Questions to answer before design
What is the system of record? Where do rules live? Which data is sensitive? What evidence must be retained? Who owns operations after go-live?
Frequently asked question
Is there one correct design for every organization?
No. Final design depends on products, policy, existing systems, data, risk and the institution’s operating model.