Why Business Process Outsourcing is the Key to Relevance in the Digital Era: The Banking Sector

1. Why Business Process Outsourcing is the Key to Relevance in the Digital Era: The Banking Sector The highly evolving market mainly characterized by changing consumer preferences is what is driving the banks to seek third-party assistance. Today’s consumers are more alert about their needs and can make more informed decisions. Therefore, consumer interest in traditional banking channels is declining. For banks to remain relevant, they have to up their game too. While the consumer demands throw a challenge, financial technology companies also pose a threat as they avail better customer experience. This is why the banks are running for Business Process Outsourcing (BPO) services. Banks need to align themselves fast with the changing customer desires. Consumers want real-time advice and ease of access to services. They also want their financial provider embedded in their daily life. BPO service providers come handy as real help. They can offer process automation solutions that provide efficiency and cost-cutting. Through them, banks can leverage technology to provide modern services and tools like Robotic Process Automation (RPO). Here is how BPO is helping the banks innovate and improve processes: 1. Understanding Customer Needs More It becomes fundamentally easy to understand customer through business intelligence and analytics techniques. This supports the creation of better customer segmentation models. BPO service providers understand that customers value effective and personalized experience while dealing with a brand. They know that this parameter is a significant one in establishing differentiation in a crowded market. How to do it is a knowledge that many businesses lack. Through the BPO, the banks can understand customer desires in a better way and provide the best standards. BPO service providers leverage on social media to interact with customers. They rely on channels like Facebook and Twitter to get insights on the likes of customers, habits and what they are buying. Customers like using social platforms to air grievances concerning products. The third-party companies use online tools to study and analyze social comments from both old and prospective customers. They use this data to understand the customers more. It is a position that greatly benefits financial institutions rather than multi-tasking their employees who may lack customer service knowledge.

2. 2. Cost Reduction The need to remain competitive is exerting pressure on banks to reduce costs and increase profitability. Though stakeholders have realized other benefits of BPO, cost reduction was initially the primary driver. Outsourcing helps to concentrate on the business core function and control costs. The work outsourced can be done at a low cost and in a much efficient way. This saves on the cost of hiring experienced people which could be quite expensive. Getting the right people to work could also require training. Thus, outsourcing will save on training program arrangements as operations are handed over to the experts. People with specialized skills get things done faster and in turn, reduces costs. 3. Full Digital Adoption BPO has opened the door for full digital adoption, a key requirement to remain competitive in this digital age. The emergence of digital tools continually changes the competitive landscape of every business. Availability of various channels enables consumers to interact with organizations differently and have altered expectations. Banking BPOs have capitalized on providing services that fulfill these customers’ expectations. The basic intelligent process automation solutions offered by BPO service providers are the Robotic Process Automation (RPA). They handle processes based on structured data and rules. They are best used for back-office functions and significantly reduce the error rate and speed- up interactions. A mix of these real-time solutions and live agents offer customers optimum personal engagement. In the absence of business process services, banks may not utilize the full potential of technology. It can be technically hard to afford. BPO service providers come in handy to provide a wealth of expertise. Majority of them partner with most cutting-edge technology firms for ultimate digital experience. 4. Access to Mobile-friendly Business Models and Cloud Business Environments BPO service providers are designing seamless mobile-friendly business models. With the realization that mobile is becoming the go-to place, business models have to shift to gain relevance. Business service providers understand well that the best way to fulfill ever-growing customer needs is to have mobile-friendly business models. Also, with Google set to rank high mobile-friendly models, the importance of mobile becomes more profound than ever. Therefore, the best way for banks to invest in the online experience of their customers is through BPO service providers.

3. Mobile usage also significantly support cloud computing. Businesses and customers can access cloud-based applications from anywhere at any time. Cloud computing has now become an integral part of businesses as the best way to handle and manage big data. BPO providers profoundly embrace this new wave of technology. First, it is becoming the best way to collaborate with their clients. Banks can now completely eliminate the use of paper documentation. Cloud computing enables quick processing of expenses and customers can pay a bill from anywhere in the world. It is evident that outsourcing is now the industry standard for many banks. It is the avenue for achieving digital transformation. A bank that ignores BPO services sidelines itself from development and competitiveness.