The past several years have brought significant change to the world’s financial markets. A growing number of legal restrictions, an increased use of technology, a reduction in revenues along with the need to adopt more aggressive business strategies while simultaneously cutting costs has forced financial institutions such as banks to rethink their operating procedures going forward. Competition between banks has increased significantly as well as consumers now have even higher expectations than in the past when it comes to customer experience and service. Lower switching costs effectively allow consumers to come and go at will.
In order to remain competitive in this harsh business landscape, banks continue to look to business process outsourcing as a way to boost the efficiency of their essential operations while at the same time operating in a more cost effective manner. Business process outsourcing companies complete functions unrelated to the banks’ core business such as clerical, record storage, data processing and accounting. Outsourcing companies are able to complete these processes at a fraction of the cost that it would run the bank to maintain their own office location and employees.
As a greater number of banks take advantage of outsourcing financial services, they are able to expand their own offerings and expertise. Business process outsourcing in particular has quickly taken a large number of the back office processes of companies within the financial services industry. Today, a large number of major retail banking institutions outsource their mortgage application processes to these third party organizations. These business process outsourcing companies are able to process the mortgage applications at a much lower cost while not compromising on quality. This quality is assured through the use of process flows and technology that are standard in the industry.
While there are certainly some banks that remained tied to expensive, outdated systems, progressive CFOs within the banking industry have begun to turn to business process outsourcing companies to essentially run the bank by outsourcing financial services to these third party contractors. The recent economic challenges as well as the innovation being brought about by new advancements in technology have caused many banks to look to business process outsourcing companies with a greater amount of experience in the technology field to keep the banks’ system current and up to date with the latest trends in the industry.
An article posted on Banking Tech1 explains how this trend of business process outsourcing companies will only continue in the coming years. As a greater number of industries begin to see these third party contractors as something other than simply a cost-cutting tool, business processing outsourcing companies will more commonly play the role of innovator as the client focuses on its core competencies. Business process outsourcing companies such as Telegenisys have the ability to positively impact innovation within an industry not only in the future, but today as well. With over twenty years of experience in outsourcing, Telegenisys possess the expertise to take your business processes to the next level while you focus on your core competencies.