Outsourcing in financial services
The term “outsourcing” has been a common buzzword in the financial sector since 2001. The number of industry conferences, scientific studies and political statements on the industrialization of the banking sector is constantly growing. The formula “buy instead of making” is promoted more and more as the answer to the challenges arising from the current processes of change.
The boom that outsourcing solutions are theoretically experiencing has not yet become evident in the real world of business. The banking industry has only just begun reducing its processing depth. The share of outsourced services is still just 20 percent.
One important reason for this reluctance is that the initial advances in business process outsourcing did not always live up to expectations. Early attempts concentrated on three aspects:
Reducing personnel costs: spinning off entire corporate divisions into independent subsidiaries (profit centers)
Synergy effects: strategic cooperation with other institutions
Streamlining: restructuring as a loan factory with simplified off-the-shelf products and automated lending
The SOLIDUS business model, on the other hand, emphasizes solutions that strengthen the ability of companies to focus on their core business by outsourcing unproductive subprocesses. By applying freed-up resources to product development and improved sales and consultation, financial service providers can refine their fixed costs and prevail in the competitive field against increasingly interchangeable products.