IntroductionInterest in BPO services and actual take-up continues to rise in the retail banking sector as pressure on banks for technology-led transformation and operational efficiency continue to mount.
This brief looks at retail banking BPO spanning sector specific operations and horizontal functions, highlighting strategic development direction of individual market segments.ScopeThe analysis is based on interviews with over 100 retail banks from the Americas, Asia Pacific and EMEA.The research provides an insight into take-up plans and current BPO services penetration levels in the retail banking sector.The brief looks at retail banks sourcing strategies and covers the key drivers and barriers to outsourcing.HighlightsRetail banks are getting more confident in using outsourcing services and rate outsourcing quite high as the means to achieve their major business and IT goals.
External supplier expertise on tap, overall rationalization driver and move from CapEx to OpEx were the top three drivers for outsourcing.Datamonitor's end-user survey clearly shows that outsourcing is gaining significant ground across the sector.
In fact, 55.3% of respondents said that they would consider outsourcing some elements of their business processes in the next two years.Although there is still some reluctance among retail banks to hand over the management of their operations to third-party suppliers, with 43.3% of respondents looking to outsource as little as possible.Reasons to PurchaseImprove understanding of the retail banking BPO market.Understand the effect that outsourcing/offshoring is having on the retail banking market.Understand retail banking sourcing strategies.