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Your Quick Guide To FinTech Outsourcing

Your Quick Guide To FinTech Outsourcing

fintech outsourcing

fintech outsourcing

 

Traditional bank practices and cash handling come with a lot of challenges and inconvenience. And in 2020, going cashless is a must. The FinTech industry is booming for this reason. With a little third party help, even a FinTech startup can rapidly boost operations — through Fintech outsourcing.

 

What is FinTech Outsourcing?

FinTech, short for Financial Technology, improves and automates financial services and processes, and is necessary for the move towards a cashless society. FinTech is one of the fastest-growing tech sectors, with over 20,000 FinTech businesses around the world as of 2020. The industry is forecasted to grow to over $26 trillion by 2022.

FinTech outsourcing is a business strategy employed by financial technology companies. Here, a company hires a third-party service provider to handle part of their operations. This move helps them reduce the workload for their in-house team, and lets the company focus on core activities. Outsourcing is an especially effective strategy for small businesses, and during challenging economic times.

 

What are the services that a FinTech company can outsource?

FinTech business owners can outsource a wide variety of business processes including IT services, product development, and customer service, among others. Here are some examples:

 

IT Outsourcing

Utilizing emerging technologies is at the core of every FinTech business. As such, IT services and outsourcing software development teams are among the most commonly outsourced services for FinTech projects. These IT outsourcing services include:

 

Call Center Outsourcing

FinTech companies can also outsource call center services. This allows their end users and clients to communicate more efficiently with the brand. FinTech businesses can outsource inbound and outbound call center services, such as:

 

Back Office Outsourcing

Back office outsourcing relieves FinTech companies of non-essential tasks and allows them to focus on streamlining the more important tasks. Some back-office services that can be outsourced are:

 

These are only a few of the services that a FinTech company can outsource. With the vast selection of outsourcing services in the BPO industry, there are certainly plenty of other services for FinTech outsourcing.

 

What are the risks of FinTech outsourcing?

FinTech outsourcing has a lot of benefits. However, it can also make your business vulnerable to certain threats, such as:

  • Third-party access to sensitive or confidential information: it could be inevitable for sensitive data to pass through the service provider. Malicious parties may take advantage of this, and use your data for illicit activities.
  • Limited transparency: the visibility of the workflow may be limited when outsourcing a task. Transparency issues may also entail hidden charges.
  • Quality control and monitoring: in outsourcing, it can be difficult to implement your own quality control standards. It would also be difficult to monitor every step of the process.

 

How do you mitigate the risks of FinTech outsourcing?

There may be risks in FinTech outsourcing, but this does not mean that there is nothing you can do about it. There are ways to minimize or even reduce these risks, and it mainly hinges on the service provider you choose.

The choice of the service provider can make or break your outsourcing strategy. Should you choose the wrong partner, everything can go wrong, and your company would suffer all the negative effects of the aforementioned risks. But with the right partner, a FinTech company can maximize the benefits of outsourcing, and boost their growth immensely and quickly, and at an inexpensive cost.

 

What are the factors you need to consider when selecting a service provider?

The BPO industry is booming in many parts of the globe, and there are lots of service providers to choose from. However, not all of these companies are the best fit for you. To find the right outsourcing partner, here are some factors to consider:

  • Length of experience: just like in hiring an employee, the years of experience also matter in hiring a service provider. Companies with lengthy industry experience know how to handle a wide array of challenges. They have developed techniques to improve their quality of work, too.
  • Quality of staff: outsourcing is all about expanding the company’s workforce. So, you need a service provider that provides extensive training to their staff, and regularly monitors and improves their performance.
  • Safety guarantee: choose a service provider that has strong data security measures in place. Checking for an ISO certification is an effective way of ensuring that your information is safe with a service provider.
  • Value for money: the rates should be within budget. Your service provider should also be able to deliver high-quality results at any price range. Choose an outsourcing company that provides high-quality services at flexible rates.

 

 

Looking for a reliable FinTech outsourcing partner?

Magellan Solutions is a BPO company that has over 15 years of industry experience. We provide a vast array of BPO and call center services for FinTech companies of all sizes. 

At Magellan Solutions, we aspire to provide high-quality services to all kinds of businesses. We make sure that each member of our staff is highly trained and ready to represent our clients. Our rates are also flexible, so even startups and small businesses can secure our services. To guarantee the safety and security of your data, we maintain ISO and HIPAA certifications, as well.

Would you like to learn more about our services? Contact us today, and we will respond promptly.

 

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