Analytics, regulatory compliance, risk management capabilities, and solutions helping banks meet demands placed on them by new-age banking consumers are likely to drive future growth in BFS BPO.
DALLAS, AUGUST 26, 2014 — The global business process outsourcing (BPO) market in the banking and financial services (BFS) sector witnessed sluggish growth of 9 to 10 percent in 2013. However, a rebound can be expected as the economy finds firmer footing and as service providers invest in emerging markets and high-end services such as analytics, digital banking solutions, and expertise in regulatory compliance and risk management.
New-age consumers of banking services–those who prefer banking using digital channels like the Internet and mobile apps–are forcing banks to change quickly, and these changes in turn are driving the shift for BFS BPO providers.
These findings and more are discussed in a new Everest Group report, Banking and Financial Services (BFS) BPO Annual Report 2014 – Low on Growth, High on Regulations – BFS BPO Adapts to the “New Normal.”
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In addition, a free Everest Group webinar on “Banking and Capital Markets ITO–Trends, Regulations, Technology” is available for viewing on demand.
“We’re seeing some holdover trends from 2013 picking up steam in BFS BPO in 2014,” said Anupam Jain, practice director at Everest Group. “For example, capital markets buyers are increasingly looking to service providers to help manage risk and assist in meeting regulatory requirements. We’re likely to see this accelerate, particularly in Europe.
“We’re also seeing emergence of onshore resourcing by service providers, mainly as a result of regulatory concerns, especially in lending. And in banking, we are seeing a strong emphasis on digital channels as these are finding increased favor with customers and banks continue to shutter brick-and-mortar branches.”
High-resolution graphics illustrating the report’s key takeaways can be included in news coverage, with attribution to Everest Group. Graphics include:
- BFS BPO continues its steady growth path.
- Increased activity from small and mid-sized players has resulted in declining ACVs in both banking and capital markets BPO
- Adoption of complex services in BFS BPO
- Regulatory downpour squeezing margins? Outsourcing to the rescue!