The Top 6 BFSI Business Processes That Are Best Outsourced

By Erwin Mortelmans 

In an era marked by digital transformation and heightened customer expectations, the BFSI sector faces a unique set of challenges and opportunities. Staying competitive while navigating complex regulatory requirements and meeting customer expectations is no small feat. One strategic solution gaining momentum in the BFSI industry is outsourcing. Let’s explore the top six BFSI business processes that are best outsourced to enhance efficiency, reduce costs, and drive innovation.

1. Customer Support and Service. Exceptional customer service is the cornerstone of success in the BFSI sector. Outsourcing customer support and service functions, including call centers, chat support, and email inquiries, allows BFSI companies to focus on core competencies while ensuring an exceptional customer experience. External service providers offer the scalability and 24/7 availability needed to handle customer inquiries, resolve issues, and provide personalized support. Some even offer multilingual services (including for main European languages) to address the diverse linguistic needs of customers, while others utilize AI-driven translation solutions to bridge language barriers effectively.
2. Software Development and Implementation. Today’s digital natives are becoming increasingly demanding and want easy access to personalized financial products and services. If a BFSI company is to remain competitive, it must be able to keep up with the fast pace of technological advancements. Outsourcing software requirements to fintech experts and managed services providers will help meet these industry challenges cost-efficiently.
3. Data Management and Processing. Accurate and compliant data management is non-negotiable in the BFSI industry. Outsourcing data entry, data validation, data cleansing, and data processing tasks not only improves data quality but also ensures adherence to regulatory standards. External experts equipped with advanced technology can efficiently handle vast volumes of data, freeing internal resources for strategic initiatives.
4. IT Operations and Support. The BFSI sector heavily relies on technology, making IT operations and support critical. Outsourcing IT functions, including infrastructure management, application maintenance, helpdesk support, and network management, ensures technology systems run smoothly. External experts can provide the required expertise, allowing BFSI firms to stay up to date with the latest technology trends and security measures without diverting internal resources.
5. Compliance and Regulatory Reporting. Navigating the labyrinth of regulatory requirements is a constant challenge in BFSI. Outsourcing compliance monitoring, reporting, and risk management functions to specialized service providers can mitigate regulatory risks. These providers bring a deep understanding of industry regulations, helping BFSI companies stay compliant and avoid costly penalties.
6. Back-Office Operations. Streamlining back-office operations is a key driver of cost reduction and operational efficiency. Outsourcing functions such as transaction processing, document management, record keeping, finance and accounting, Human Resources (HR) and payroll administration, and administrative tasks can significantly lower operational costs. This allows BFSI companies to allocate resources more strategically, focusing on core business objectives, innovation, and growth.

With the continuously evolving financial services landscape, BFSI companies must adopt innovative strategies to thrive. Outsourcing select business processes emerges as a strategic imperative. By leveraging external expertise and resources, BFSI companies can enhance operational efficiency, reduce costs, and ensure compliance, all while focusing on core competencies and innovation. Embracing this strategic shift empowers BFSI organizations to remain competitive, agile, and customer centric.

Erwin is the Business Development Director at Eastvantage. He has demonstrated senior leadership in finding growth opportunities and forming strategic partnerships in the finance, logistics, oil and gas, and chemicals industries. He was active in Europe, the Middle East, Asia, Latin America, and Africa. With a degree in commercial engineering, Mortelmans is a results-driven relationship builder with solid commercial, business development, and managerial experience.

Eastvantage provides purpose-built outsourcing solutions for the BFSI sector. Check out how we’ve helped our clients succeed in this highly challenging digital era through our managed services.