Traditional banking processes and cash handling operations are becoming obsolete gradually. There are a lot of challenges and inconveniences in traditional financial operations. This is why FinTech industry is occupying the market. With third-party help, even startups and traditional financial services companies can transition to FinTech operations smoothly. Financial services outsourcing has helped many BFSI companies boost their operations, be more customer-centric and increase sales.
The year 2020 has taught the importance of going cashless as the virus spread through any physical contact. FinTech sector has been playing a vital part in growing the economy ever since. It is making businesses and customers more independent. Customers can quickly get loans or other services, banks can easily introduce new systems, and users can get used to the new systems sitting at home. However, this cycle might stop functioning properly without help from expert customer service providers. FinTech is still a new field for many; businesses rely on BPO services for greater customer satisfaction and seamless business operations.
What do you mean by financial services outsourcing for FinTech?
FinTech is the short form of Financial Technology. Financial services companies adopt the latest tools and technologies like automation, Artificial Intelligence, and Machine learning to build a cashless society and virtual operations. The demand for financial technology has increased so much in just one year that more than 20,000 FinTech businesses have set a firm foot in the global financial market. The sector is expected to reach over $26 trillion by 2022 (Source: Tipalti)
Thus, financial services outsourcing is a business strategy practiced by most Financial Technology adopters or FinTech companies to help customers adapt to this technological transition. The companies hire BPO services to handle parts of their non-core operations. This step helps them decrease the workload from their in-house resources and lets companies pay attention to core business activities.
Outsourcing BFSI services was top-rated until 2020 and they still are. Financial BPO providers’ importance is felt when customers demanded more convenient support services, when businesses had to operate remotely and when automation started taking over conventional banking practices.
What are the BPO services that a FinTech business can outsource?
Today, customers want to be in charge of conducting business on their terms. Financial institutions that relied heavily on aggressive product sales and telemarketing have to change their strategy. They should consult with FinTech BPOs and check out the latest service offerings to understand the outsourcing trend. Then, they can tally what services they need are. Most FinTech companies outsource a range of business processes, including:
IT Support
Leveraging emerging technologies is at the heart of every Financial Technology company. Hence, it is obvious that they also need support for IT troubleshooting, solving cybersecurity challenges, upscaling or downscaling cloud workloads, providing multiplayer data breach protection, and many more. Many BPO providers also offer app development services, IT product development support, and web development.
Sales and Answering Service
Typical call center services are often outsourced in the financial technology domain. This facilitates better communication with customers and vendors. Inbound and outbound call center services usually outsourced are:
- Customer support
- Multilingual communication services
- Live chat support services Interactive Voice Response (IVR)
- Market Research or consumer survey
- Telemarketing and sales
Back Office Outsourcing
Noncore back-office tasks comprise HR, Payroll, accounting, regulatory compliance management, record maintenance, data entry, etc. FinTech companies relieve their resources from non-essential tasks by outsourcing back-office services and focus on streamlining their tech products and services. Back office outsourcing for BFSI includes data management, payroll outsourcing, transaction processing services, billing and invoicing services, and more. Various financial services call centers have built a strong reputation by delivering quality services. They can be your ideal contender for your outsourcing venture.
Collection Services
Financial services firms, credit lenders, and banks face considerable losses due to bad debt and defaulted loans every year. It is an unavoidable problem, but you can streamline and accelerate debt recovery processes by outsourcing your collection services. Debt collection services can be outsourced to recover from losses and ensure stable cash inflow in the accounts receivable. It is a difficult task that requires dedicated resources and technical know-how. So, expert collection agencies can help. Outsourcing collection services is more cost-convenient than managing a dedicated in-house collection department that must include attorneys, debt collection experts, and IT staff.
Digital Marketing
FinTech digital marketing support is one of the latest additions in financial services outsourcing. Previously, digital marketing services were not included among call center services. Today, most contact center solutions include digital marketing as a service to keep up with the digital-savvy customers and business requirements. For financial services, expert digital marketers and forward-thinkers empower a brand with result-driven marketing strategy, search engine optimization, PPC, social media marketing and online reputation management.
Inbound Support Services
The most crucial factor for keeping a business up and running has a satisfied and loyal customer base. This is especially true for banks and financial institutions. The customer service you offer and the communication support you provide to your customers can ensure satisfaction. The customer support team handles this task. Inbound calls, live chat support services, grievance management, email answering are some of the functions that a BPO for FinTech can offer. Dedicated, 24/7 support for customers will help build brand credibility and customer trust.
Financial Services Support for phone apps
Today, a FinTech company or any financial organization has to have mobile applications. They capitalize on mobile apps to connect to customers easily and provide better convenience in the smartphone-savvy world. Mobile apps are known for making financial processes easier for both businesses and users. Thus, to ensure your customers get a positive experience while using your app, you must provide 24/7 support. When they face any issue or don’t understand how to avail of a service via the app, you need a support team who can address such issues promptly. The app support is meant to provide user guides, help navigate one tab to another, and avail essential functions using self-service options. With first contact resolution support, a financial services call center will ensure improved customer care.
What is the need for FinTech outsourcing?
Other tech-savvy sectors like retail and eCommerce, hospitality, and travel have set expectations higher for customers. It has put pressure on the financial technology sector to improve product and service delivery. They want to access all the information and avail all the services at their convenience. If not, they don’t mind switching the company. To be in business in a customer-centric world, offering high-quality customer service is very crucial. It is the critical differentiator that can assure sustainable growth with more significant profit margins. Thus, FinTech outsourced services from a reliable third-party are the need of the hour.
End Note
The digital revolution is responsible for a massive change in the traditional financial, operational sector. FinTech sector has emerged as a sub-sector of financial services to cater to tech-savvy customers and banking needs. The services are more personalized, efficient, and fast, often integrated with AI, big data analytics, algorithms, and cryptocurrencies.
Financial services outsourcing is a trend surfacing the FinTech sector as well. It provides resource flexibility, better customer support and business development.