Posted by: Sumit More

BFSI and Covid-19: The Way Forward

Outsourcing in the banking and financial services industry has been happening for a very long period of time and we have seen that it has matured and is very stable currently.

We are now seeing a difference and have now entered a phase where we are seeing the changes that come along with digital transformation impact decisions of outsourcing.

Before Covid-19 we had a structured and staggered approach to outsourcing. Almost all industries used a similar template for their own outsourcing.

Banking and financial services has in fact grown to be one of the more stable outsourcing industries that work with partners and vendors for longer periods of time and most of these relationships are multi-year relationships and they have a certain amount of regulatory oversight.

If we look at what has happened since Covid-19 struck is that we are now moving to a page where banking and financial services along with their outsourcing partners are looking at advanced levels of digital transformation for the business as well as demands of digital transformation from the customer.

The customer demand for transformation from the customer is growing at a pace that has outstripped the ability of businesses to keep up with customer demands.

The banking and financial services industry is increasingly demanding that partners and vendors work with them on crucial aspects such as risk management, cyber security and analytics.

Traditional outsourcing is still a very big part of the business that comes out of banking and financial services industry but this has turned on its head during the Covid-19 pandemic and risk management and customer experience are increasingly becoming key factors of difference for a banking and financial services form to make a choice among the market players.

Superlative Customer experience has become the new norm along with higher focus on Risk Management.

Customer and risk analytics are increasingly becoming points of consideration for banking and financial services when choosing a partner as these have a direct impact on branding as well as regulatory oversight.

We are increasingly seeing digital payments becoming more prevalent and cash being replaced with digital payments and also the fact that banks are increasingly looking reduce the physical footprint and become digital first. In such an environment customer protection, risk and cyber security management and analytics become high value services which require dedicated professionals constantly looking at the data generated.

One can predict that in the days to come a good partner in such an environment can also help in product management and new product development that can identify new and niche markets and customers and will be able to service their requirement in targeted and concentrated manner.

The mutation of outsourcing from traditional functions to new age requirements was in the works; Covid-19 merely made it faster leaving most business looking for agile partners who understand customer demands before the customer actually stated it.

Author:

Sumit More

Sumit More leads the practice and has 2 decades of experience in Enterprise Transformation and Program Management. You can contact him at ha00600579@techmahindra.com.