Decreasing commissions, depressing revenues, and increasing regulatory requirements are pushing finance firms to seek alternatives to lower costs. Outsourcing can help financial organisations face these challenges through a number of advantages.
Better strategy at a lesser cost
Financial institutions can concentrate on front-end activities when they outsource back office operations. They can also build local presence at high-cost international markets such as Asia and the Middle East at a manageable cost. Setting up an office offshore can be expensive, especially in financial centres or booming markets such as Singapore.By outsourcing middle or back office operations, financial institutions can re-invest cost savings into other client offerings, such as research and trading.
Access to the latest technology
Financial institutions can take advantage of IT outsourcing solutions to keep their systems updated. They would be able to cope with constant market changes and regulatory requirements, as well as access to the latest technology.Broker dealers can reduce operational risk, better manage transaction exceptions (and collect the necessary information to fix them) and access scalability through up-to-date trade operating systems.
Access Expertise
Financial institutions can use expertise to augment their services. They can replace existing expertise and/or expand new services. They can also access expertise that is not available in their in-house day-to-day operations.Adviser firms can leverage these services:
- Technical skill sets for compliance and regulatory requirements
- External research and panel construction
- Paraplanning resource
- File checking and quality assurance
- Temporary offshore staffing
As a result, financial institutions can spend more time on direct or hands-on functions.
Post a Comment