Banking BPO Services
Encyclopedia
Banking business process outsourcing or banking BPO is a highly specialized sourcing strategy used by bank
s and lending institutions to support the business acquisition and account servicing activities associated with the customer lending lifecycle. These specific BPO services are usually offered through multi-year service-level agreements for all or portions of the credit card lending, consumer lending or commercial lending segments of the financial services market. Some larger financial services organizations choose to extend their sourcing strategy to include other outsourced services such as ITO
systems and software, human resources outsourcing and benefits services, finance and accounting outsourcing (FAO) services, procurement or training outsourcing.
Banking BPO services are typically defined by industry analysts, advisors and leaders in the sourcing industry, such as the set of discrete processes or transactional activities that support the lending lifecycle as follows:
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s and lending institutions to support the business acquisition and account servicing activities associated with the customer lending lifecycle. These specific BPO services are usually offered through multi-year service-level agreements for all or portions of the credit card lending, consumer lending or commercial lending segments of the financial services market. Some larger financial services organizations choose to extend their sourcing strategy to include other outsourced services such as ITO
Information Technology Outsourcing
Information technology outsourcing or ITO is a company's outsourcing of computer or Internet related work, such as programming, to other companies...
systems and software, human resources outsourcing and benefits services, finance and accounting outsourcing (FAO) services, procurement or training outsourcing.
Banking BPO services are typically defined by industry analysts, advisors and leaders in the sourcing industry, such as the set of discrete processes or transactional activities that support the lending lifecycle as follows:
- New customer acquisition services include telemarketingTelemarketingTelemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.Telemarketing can also include recorded sales pitches...
activities, application processing, underwritingUnderwritingUnderwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
, customer or merchant credit evaluation and verification, credit approval, document processingDocument processingDocument Processing involves the conversion of typed and handwritten text on paper-based & electronic documents into electronic information utilising one of, or a combination of, Intelligent Character Recognition , Optical Character Recognition and experienced Data Entry Clerks....
, account opening and customer care and on-boarding. - Account servicing processes for credit cards or consumer loans. These most commonly include payment processing systems and services, customer service or call center support operations (voice, digital, email and mail services), product renewals, and loan disbursement; document management services such as printing and mailing of statements, networked printing and storage solutions; collections, recoveries processing, default management, risk management and foreclosureForeclosureForeclosure is the legal process by which a mortgage lender , or other lien holder, obtains a termination of a mortgage borrower 's equitable right of redemption, either by court order or by operation of law...
. - Consumer and commercial lending post origination transaction processing services, such as check processing, clearance and settlement services, remittance, and records managementRecords managementRecords management, or RM, is the practice of maintaining the records of an organization from the time they are created up to their eventual disposal...
. - Back office transaction process management for loans or credit card portfolios, including custody services, fraudFraudIn criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
mitigation and detection, regulatory and program complianceCompliance (regulation)In general, compliance means conforming to a rule, such as a specification, policy, standard or law. Regulatory compliance describes the goal that corporations or public agencies aspire to in their efforts to ensure that personnel are aware of and take steps to comply with relevant laws and...
, portfolio analyticsAnalyticsAnalytics is the application of computer technology, operational research, and statistics to solve problems in business and industry. Analytics is carried out within an information system: while, in the past, statistics and mathematics could be studied without computers and software, analytics has...
, reporting, conversions, management of technology platforms, interface for customer data and custom development.
External links
- Outsourcing in Financial Services; http://www.bis.org/publ/joint12.html
- Outsourcing Holds Promise for the Banking and Financial Services Industry; http://www.everestresearchinstitute.com/Product/10490.html