Hardly any industry is as strongly affected by the digital transformation as the banking sector, i.e. the banking institutes need to comply with the strict regulations involved. There are industries in which the influence of digitalization takes place fast and vigorously – for example in information technology, media as well as in banking and insurance – and there are industries where it takes more time and the impact is less engraving. In many areas, the banking institutes are considered pioneers because they have accommodated to deal with ones and zeros at a very early stage. Even though a bank employee doesn’t affirm that he works in an IT-company, neither does he make a pretense of the fact that the modern value-added model of banking institutes is extremely data-driven. Even more so, it would be worth noting the status quo and the challenges relating to the outsourcing of credit institutes. In its current research study headlining “Fit for the Future – how Banking Service Providers Successfully Position Themselves in the Business Process Outsourcing Market 2020”, PwC considers the situation and analyses the challenges the companies have to face in future.
Unitised Offers Lead the Way
As of the research study, financial institutes should improve both modulation and standardization of their business processes to fully exhaust the potential of Business Process Outsourcing (BPO). Only if this is the case, they can specifically lower the costs and profit from external expert knowledge. Almost half of the interviewed service providers (43 percent) believe that most banking processes are not yet congenial to completely resume the scope of the services offered. Another 38 percent think that the preconditions are only partially met. The BPO-providers pursue a strategy of building most of their process structures in a unitised way to enable an even more individual outsourcing –adapted to the customer needs at a high standardisation of process sections. 64 percent of the interviewed BPO-providers think that this modular approach is suitable to offer highly granular process sections on the market. Thus, specific steps of the support procedures can be outsourced while critical structures are retained at the banks. To do so, banks must improve their process maturity level. Even if the organisational requirements concerning outsourcing increase further, the trend of outsourcing in the banking sector continues.
Specifically Strengthen Innovation Skills
From DARZ’s point of view, the process outsourcing is about the only chance for banks to achieve the necessary clearances against the background of the increasingly low-margin business with standard services. As we see it, it is both viable and reasonable to outsource as many part components as possible. By corresponding certificates such as ISO 27100 or PCI DSS, the supplier furnishes the ability to deal with critical matters as well. If financial institutes tackle it in the right way, outsourcing leads not only to streamlining but also to an increase in the organisation’s efficiency – it also improves the capacity for innovation. You gain the impression that banking institutes have only scratched the surface when applying digital instruments. The potential below the surface remained the same compared to the passing years. Specifically, this implies that only if outsourcing is run on an innovation platform with the corresponding infrastructure, technology, know-how and further communication partners, it will be advantageous in the long run. In this case, it is not only used for partial process optimisation but there are new services coming up that duly push the business forward.
Author: DARZ GmbH
DARZ is a digital evolution provider. As global platform for innovations in IT and technology, the company acts just like an IT-Full Service Provider that has its own high-security data centre and at the same time markets unitised services around public and private cloud as well as colocation. As the first company, DARZ developed an authentic hybrid cloud and is a decisive driver of the concept of multi cloud sourcing. DARZ offers leading edge infrastructures, services and know-how of top quality and security to customers and partners. This approach helps to master current and future digital challenges and to gain competitive advantages.