Outsourcing lending, investment and remediation processes to enable financial services providers to focus on core activities, reduce risk and enter new markets quicker
Market pressures fuelling business process outsourcing
As markets become increasingly competitive, and as risk and compliance pressure increases, financial services providers are increasingly looking to outsource their servicing processes. Such outsourcing of key activities enables those providers to:
- Bring new products to market quickly, avoiding typical barriers to entry
- Reduce commitment and capital outlay when testing new markets and propositions
- Mitigate risk factors, especially in new products and markets
With economic and market uncertainty comes risk aversion, but without any lessening in pressures to improve performance. Providers are being forced to rethink propositions and business models, with the aim of standing out in a market under disruption from digital and direct entrants.
For businesses moving into new markets, partnering with a business process outsourcer can help to keep market entry costs low by reducing fixed expenditure in staff, IT systems and premises, along with avoiding significant investment in key servicing infrastructure. The assurance of predictable costs, as well as being able to leverage a regulated servicer to handle regulatory challenges, places the provider in a strong position.
Our business process outsourcing services
Demands of the modern customer
With Generation Z about to enter the investments, loan and mortgage markets (if they haven’t already), providers are going to need to adapt to their very different demands. With Child Trust Funds and Junior ISAs, this and future generations are joining these markets in huge numbers, and sooner than ever before.
Rather than being tied up by sluggish legacy systems that stifle the customer experience, outsourcing the servicing of loans, mortgages, investments, remediation and complaints gives lenders the opportunity to adapt quickly, testing out new approaches to new markets, away from traditional servicing models.Contact us today to discuss your company’s outsourcing needs
Securing competitive advantage
In addition to ensuring compliance and easing administration, business process outsourcing can also help financial services providers to create and maintain a competitive advantage, even as the market moves quickly. Third party administrators are in a position to undertake multiple roles dependent on the lender’s requirements, including:
- acting as a partner for closed or originating portfolios
- standby servicing
- managing defined processes in the customer lifecycle
By outsourcing these processes, lenders can devote more time and resource to developing propositions and driving business growth.Read our Mortgage Servicing Case Study