outsourcing challenges
Banking sector has been a very traditional and conservative in any country. For ages, generation after generation, have been loyal to a particular bank that their families have been associated with. Whether the Royal Bank of Scotland and Lloyds TSB in the UK or American Express and Capital One in the U.S., people stay loyal to their banking partners.
The banking sector in the West took a huge risk in the last decade through the use of countries such as India, China and the Philippines to outsource its banking and financial services. For banks, it was a step in the right direction to reduce the number of customers walk into their branches, the number of calls received by the executive branch banking and reduce the workload on their existing call centers. They wanted to reduce the costs involved in hiring more people to serve its growing base of customers and provide better services to their customers, and gain a competitive advantage. For customers who have used the traditional banking methods such as visiting your nearest branch, were exposed to new and state of the art technologies. IT and banking services were provided by the new era success mantra for most banks in Europe and the Americas.
The approach of the banks that outsourced parts of their business to other countries was to reduce costs and increase profits. Although his approach was cautious, had loop holes in their strategy. AMEX was one of the first banks to set shop in India in the late 90's. His was a captive center. However, in recent years, more and more BPO have demonstrated their ability in handling banking and financial services more efficiently and effectively. For customers of these banks, the challenge was to overcome his fears of a stranger in a distant country to access your account information and distrust in their ability to provide solutions. In addition, there problems of language and accent. Some customers in general, called their banks and surpassed the IVR to speak to an agent because they were not very comfortable dealing with a machine and others called talk to your branch within its own country. These questions lead to delays in service. This led to dissatisfaction among customers and forced many banks to choose that had not outsourced their work and serving their needs in the country.
Data security was also a major concern for banks. More customers, banks have been living on the edge with account details accessible to the BPO in other countries. With data theft to be a reality in countries India, China and Japan, was a proven fact that outsourcing banking was not infallible. For banks that can result in large lawsuits and a decrease your customer base. The banks also had their reputation at stake. The third party vendors may continue the practices that may be inconsistent with the policies and practices of the bank. In addition to the political, social, legal and physical climate of the country can affect outsourcing banking services. For example, flooding in Mumbai during the monsoon complete halt to all commercial activities for almost three days. Such issues affect the level of services provided to customers.
Here are some statistics that reveal why the banks, despite all the challenges surrounding the outsourcing banks still prefer to outsource. The Association National Software and Services Companies (NASSCOM), showed that companies outsourcing back-office work to India save as much as 60% of their cost each year. In addition, received by the employees of Indian call center to be more productive than the agents of both the UK and U.S.. It was observed that an Indian agent makes a average 98 correct operations compared to 95 by an agent of the United Kingdom in a day. Has also been shown that India call center agents make approximately 120 operations per hour, while an agent of the United Kingdom is only 100 calls. Moreover, the average speed of answer by an Indian call center agent is about 8 seconds while compared with the speed of U.S. agent within 20 seconds.
The general approach of the banks that want to outsource, it must be the use of IT and services empowered to deliver new and better channels for banking. Banks should take steps to identify alternative banking trends and be open to partnering and collaborating with existing agents rather than building their own networks to meet the competitive challenges. In the bank branch has to be replaced by virtual models decentralized banking. This can be achieved only through technological advances that help customers experience better service with a shorter response time. Its banks of time thinking to give preference excellent customer experience fairer cost-effectiveness.
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