Outsourcing banking business process or BPO banking is a highly specialized resource strategy used by banks and lending institutions to support business acquisitions and account service activities related to customer loan cycles. This specific ODS service is typically offered through multi-year service level agreements for all or part of a credit card loan, consumer loan or segment of a commercial loan from the financial services market. Some larger financial services organizations choose to expand their sourcing strategies to include other outsourcing services such as ITO systems and software, human resources and benefit services, financial services and accounting outsourcing (FAO), procurement or outsourcing training.
BPO Banking services are typically determined by industry analysts, advisors and leaders in the source industry, such as a series of discrete processes or transactional activities that support the loan lifecycle as follows:
- The new customer acquisition service includes telemarketing, application processing, underwriting, evaluation or verification of customer or merchant credit, credit approval, document processing, account opening and customer service and on-boarding.
- Service account process for credit card or consumer loan. This most commonly includes payment processing systems and services, customer service or call center support operations (voice, digital, email and mail services), product updates, and loan disbursements; document management services such as printing and shipping statements, network printing and storage solutions; collection, recovery processing, default management, risk management, and foreclosure.
- Commercial and consumer lending transaction processing services after origination, such as check processing, permission and settlement services, remittances, and records management.
- Management of back office transaction processes for loans or credit card portfolios, including containment, mitigation and fraud detection services, regulatory and program compliance, portfolio analysis, reporting, conversion, management of technology platforms, customers and custom development.
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References
- Resources to Survive: What is the Impact of the Credit Crisis that Happens on Sourcing in the Financial Services Sector? Tony Rawlinson, Managing Director of EquaTerra Financial Services practice; http://www.equaterra.com/_filelib/FileCabinet/News/EquaTerra_Article_Sourcing_for_Survival_Alternative_Investment_Review_2009.pdf?
- Outsourcing IT and Business Process: A Primary Supervisor http://www.newyorkfed.org/banking/outsource.html
- Offshoring Financial Services: Moving Toward a Late Captives and Global Cost Competitiveness, The Conference Board, May 2010; https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=1767
Maps Banking BPO services
External links
- Outsourcing in Financial Services; http://www.bis.org/publ/joint12.html
Source of the article : Wikipedia
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