Due to globalization, organizations have become extremely competitive and agile. The pandemic has made businesses aware of the interdependence of markets. The effect in one sector also causes changes and disturbances in other sectors. To remain pivotal in such volatile and interdependent markets, organizations have realized the importance of business process outsourcing (BPO).
Outsourcing of business processes: the boost for financial institutions
The existence of outsourcing goes back years. But banks and financial institutions have only recently begun to leverage their power. This simple process can help companies reduce operational costs and add value for investors and customers.
Since the global economic crisis of 2007; the banking sector faced various disruptions and struggled to recover. Gaps in regulatory frameworks and industry pressures further push the sector to evolve. Hence, the need for adopting innovations has also come to the fore and outsourcing is one of the viable solutions.
What is remarkable is that previously, outsourcing was mainly reserved for non-strategic functions like payroll, logistics, etc. However, with the adoption of technology, financial institutions now prefer BPOs for bigger and more important functions!
Benefits of BPOs for the financial sector
BPO in the financial sector helps reduce inefficiencies in operations and eliminates the need to partner with a third-party service provider to manage business processes of accounting, finance, HR, customer engagement, cross-selling, up-selling, etc. . BPOs offer a significant business value proposition, the main one being improved operational efficiency and reduced costs.
Financial institutions are shifting their nonessential but essential work to BPOs. Business process outsourcing companies today aren’t just phone callers, they’re technology-driven customer engagement agencies. They are considered the most technological sector at present. Leveraging the power of artificial intelligence, augmented reality, and chatbots along with other technologies, BPOs help streamline customer support and address a wide range of challenges they face.
BPOs help improve customer experiences through social media and online customer testimonials. Outsourcing has also helped them reduce time to market, allowing them to make their products available at a rapid pace. One of the major benefits of financial institutes associated with BPOs is that they provide opportunities for financial brands to generate greater revenue by opening up strong cross-selling opportunities during customer interactions. Moreover, business process outsourcing agencies also help institutions to access customer feedback. This makes it easier for industry players to understand pain points and modify their operations accordingly.
BPOs also provide back-office efficiency which is the key driver of profitability in the financial industry. They offer an exceptional operational service by uniquely combining financial and accounting services. BPO service providers offer exceptional operational creativity as well as transparent operation. They hire experts with hands-on experience in the field so that they can provide the best solutions to their clients. Thus, business process outsourcing companies act as a partner dedicated to innovation and transformation of the financial sector. Business process outsourcing companies, on the whole, help to improve customer experience and customer acquisition and as a result, partnering with them is now seen as an investment for the progressive future rather than an option or a luxury!
The changing market demands constant innovation which results in better customer services. Since BPOs are technology companies, they have access to software solutions that can completely revamp and reshape businesses. Business process outsourcing companies are helping the financial industry move from a transactional approach to a strategic model. Provide support for IT, knowledge process, accounting, remote operations, payroll, purchasing, cross-selling and up-selling, etc. ; BPO companies have helped the sector considerably! They not only save time and money, but also reduce redundancies and inefficiencies in operations. Business process outsourcing companies, with the use of their cutting-edge technologies and expertise, thus appear to be a critical element for the financial industry!
The opinions expressed above are those of the author.
END OF ARTICLE