To develop a sustainable model for the future, organisations across various industries, particularly from financial services, have to rethink the way they operate – Business Process Outsourcing (BPO) is one of the choices to make for a sustainable business.
The financial services industry is currently facing a set of fundamental changes and challenges. Today, financial services institutions across geographies have to cope with increasing tax transparency impacting the ROA; the acceleration of regulatory pressure (FATCA, EMIR, MiFID II, etc.); new markets and client types requiring new competencies, services and channels; new technologies and legacy technologies (e.g. complex application landscapes and obsolete systems that will need to be replaced).
These developments are putting considerable pressure on financial services institutions, and demand important strategic decisions. Existing players will have to accept these changes, adapt to them and develop a consistent approach for the future to create a sustainable model in order to remain competitive.
Several levers can be used by wealth financial services to review and adapt their business and operating models, which are closely interlinked.
Business process outsourcing—outsourcing of operations and IT – is one of the key strategic levers many financial services institutions are currently considering or have already used to fundamentally transform their operating models. Business process outsourcing is about strategic impact not only cost reduction – it allows financial services institutions to concentrate on their core business and to significantly increase efficiency by sharing operational and IT costs.
There is no ‘one size fits all’ approach to business process outsourcing in financial services. When planning and realising a BPO project, your organisation needs to consider a number of dimensions and aspects to successfully realise the project. From day one, various key elements have to be analysed in order to ensure that you go in the right direction and don’t get lost.
