A bank or a finance company will have different types of back office operations, ranging from form filling to loan processing and survey entry. Handling all such back-office tasks in-house can be burdensome. Outsourcing these tasks to professional service providers can streamline processes and maximize efficiencies. Back office outsourcing solutions provided by experienced companies can help banks in improving their workflow.
Banking, financial services and insurance (BFSI) sectors rely on back office outsourcing to enjoy key benefits such as –
- Save staff’s time for core business tasks
- Improve service quality
- Enhance the bottom line
- Get access to high-end technology
- Increase customer satisfaction
- Manage massive data efficiently with skilled resources
- Reduce compliance and regulatory violations
- Easily manage transactional processes
According to a report from Allied Market Research, the global BFSI BPO services market size that was valued at $85.12 billion in 2020, is expected to reach $174.94 billion by 2028, growing at a CAGR of 9.7% from 2021 to 2028. Key factors that are predicted to impact the growth of the market include an increase in the need for operational efficiency & transparency in business processes, the surge in adoption of cloud communication-based BPO services, and an increase in demand for cost savings on infrastructure & technology.
Back Office Outsourcing for Banks
Back office processes that are worth outsourcing for the finance and banking sectors are –
- Customer care support
Satisfied customers play a key role in your business growth. Professional BPO companies can provide banks with services from skilled and well-trained people with detailed knowledge of banking services, good typing skills, and the ability to handle telephonic conversations. Such firms can provide quality pre-and post-sale experiences to customers.
- Data entry
A banking job involves a lot of online and offline data entry such as filling up paper forms, dealing with bills and coupons, online databases, extracting and compiling the data from images and scanned documents, and so on. Outsourcing this time-consuming task can provide more time to focus on critical functions of banking. Experienced data entry companies can help in extracting data from questionnaires, surveys, images, forms, and other sources, making it easy to access any sort of information.
- Document scanning and management
Accessing necessary information from a huge amount of paper data is a strenuous and time-consuming task. Document scanning solutions help store data digitally in the drive or cloud space. Providing easy access to information can simplify the entire operation. Professional firms can assist in scanning and indexing all types of financial documents including trading reports, annual reports, merger acquisition papers, and more. With the digital storage options, banks can also minimize operational costs and save office storage space.
- Regulatory compliance
Banking and financial institutions must be up to date with the laws, regulations, and standards that are relevant to their business processes. Violating regulatory compliances or failing to comply with regulations can lead to fines and penalties by government agencies. Regulatory compliance risk management services help banks to meet all regulatory requirements and thus ensure seamless operations.
- IT & cybersecurity support
Cyberattacks, hacks and breaches are now common. All sorts of transactions in banks must be secure enough to protect customer assets. Outsourcing data security and IT support tasks to an experienced hand can help financial institutions focus on core processes.
According to a report from Markets and Markets, back office outsourcing dominates the overall outsourcing market in the U.S. Streamlining banking operations can improve customer satisfaction and banks can cope with the changing preferences. Outsourcing back office operations to professional BPO companies facilitate the execution of mundane and non-core processes, enabling organizations to focus on improving service offerings. The increasingly competitive environment in the banking industry has forced banks to outsource their operations and concentrate on core competencies. To remain competitive, banks must come up with intuitive and reliable solutions.