Banking, Financial Services, and Insurance sector have aggressively transformed themselves and leveraged technology to suit the needs of evolving customers. While technological advancements have always outpaced organizational adaption, the BFSI sector has acclimatized faster.
From managing paper records to offering online purchases and one-click premium payments, banks and insurance entities have invested heavily to improve customer experience.
The expansion of the BFSI sector, backed by technology, where organizations are relying on Fintech applications for catering to the needs of millennials requires experienced partners to see these projects through. This sudden spurt of growth requires BFSI players to leverage a list of expertise like KYC management, Customer Experience Management, and Comprehensive Cybersecurity fulfillment.
Starting from scratch and building an in-house team for offering quality experience while safeguarding customers from external threats is expensive, exhaustive, and ineffective. BFSI players can leverage the power of outsourcing and become successful in all their endeavors.
Why BFSI Organizations Need Outsourcing Partners?
The surge in growth of Fintech organizations have acquired unwanted attention and with BFSI players introducing their Fintech services, they are likely to face the following challenges:
- Targeted by advanced persistent threat groups
- Lack of clear guidelines and poor implementation
- Frauds due to third-party integrations
- Threats due to deployment and operational challenges
While technological challenges and cybersecurity needs continue to grow with expansion, paperwork, customer queries and other government requirements are also growing. Organizations need to offer quality customer support, ensure accurate paperwork, and also report to the government at regular intervals, which requires a huge pool of trained and experienced employees. Outsourcing is perhaps the only way to ensure all these requirements are fulfilled without putting a hole in Banks’ pocket.
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How BFSI Organizations Can Select The Right Outsourcing Partner
There are several concerns that banks and insurance enterprises need to address when outsourcing processes and integral documents for processing. BFSI organizations can look for the following traits when finalizing an outsourcing partner for varied processes.
1. Industry Experts with Potential of Innovating
Banks and Insurance domains are highly sensitive, the kind of data they operate on is highly confidential, which when accessed by wrong personnel, can lead to great damages. When looking for outsourcing partners, banks need to identify players that have successfully handled such sensitive data in the past.
Since hackers are always prying on such organizations, it is indispensable to get in business with players who can innovate new paradigms and protect their modus operandi from any compromise.
BPOs today are leveraging the latest industry trends like tailored outsourcing and omnichannel expertise that caters to varied needs of organizations and customers respectively. Such personalized services ensure protection from unauthorized access at all fronts.
2. Players That Fulfil Compliances
Since banks and insurance players are willing to take the Fintech route and cater to the growing needs of evolving customers, it becomes important to have compliant partners. Any outsourcing organization that abides by the varied requirements of PCI DSS, GDPR, and CCPA is good to go.
When BPO enterprises fulfill PCI DSS and ISO requirements, they display their willingness to adopt and seriousness towards serving bigger organizations. Also outsourcing organizations that comply with ISO requirements are good for easier onboarding and API integrations.
Some of the necessary compliances that outsourcing organizations must fulfill
- ISO Family
- PCI DSS
- HIPAA, if working with Healthcare organizations
3. Organizations With Technologically Equipped Workforce
In the age of payment banks, traditional banks and organizations are fighting for survival. These payment banks have relied heavily on technological advancements to offer one-click KYC and instant payments, which is pulling customers towards them. Banks with branches spreading throughout the country are feeling threatened hence they are also adopting the Fintech applications.
To ensure a smooth and effective transition, these organizations require a technologically equipped workforce. To offer millennials with instant approval, banks require a huge pool of manpower to verify KYC forms in real-time. By hiring organizations with highly trained agents, banks can easily cope up with the changing times.
Such a trained pool of agents will also assist with
- Live chat support that helps new customers with account creation
- Explain new customers about the comprehensive offerings
- Easier management of all physical documents procured from customers
4. Check For Cultural Compatibility
When organizations are scaling, their focus remains on growth and not on stability. To sustain growth and ensure quality customer service, organizations need to get in partnership with organizations that are:
- Financially Stable
- Have good credentials
- Prior experience
- A synergy between the organization’s aim
Often BFSI players get in partnership with organizations that are not a cultural fit. There are varied kinds of outsourcing enterprises out there, while some of them specialize in outbound calling, some are champion of KYC and AMC management.
BFSI players should out list their requirements first and then start looking for potential partners, this way they will be able to collaborate with organizations that are in sync with their requirements.
5. An Organization That Offers Comprehensive Services
A BFSI organization generally needs multiple outsourcing partners that can cater to needs which includes:
- Know your customer and anti-money laundering compliances
- Partner onboarding for payment banks
- Contact center services for customer support and lead generation
- Cybersecurity partners that offer compliance fulfillment and protection too
Banks are seriously not looking for having too many partners, they are always on the lookout for partners that can offer comprehensive services because they are already entangled among varied departments that includes insurance, income tax, and many others.
Getting in business with an organization that offers comprehensive services will help BFSI players focus on
The increasing penetration of Fintech applications with no banking background like Google pay and WhatsApp pay is coaxing banks into diversifying their portfolio. Banks are gearing up to offer varied services like insurance, tax management, investment, and peer to peer transfer through tech-based applications and they need partners to execute it properly.
Outsourcing organizations can leverage BPO trends and prepare themselves for incomparable growth in the coming times. While outsourcing agencies are gearing up, banks will be required to filter quality agencies from the pool and these pointers mentioned in this article will prove to be beneficial.