Optimising costs
Cost pressures and the growing complexity of financial products and how they are taxed are prompting more and more private banks to outsource their IT and back office functions. This trend is likely to pick up speed.
The financial crisis put wealth managers to a severe test. Fiercer competition and lower portfolio returns, made worse by the disappointment caused by certain kinds of investments, are putting pressure on margins. As a result, more and more private banks are looking for ways to substantially optimise costs, targeting three areas:
- the front office,
- control functions, and,
- IT and back office functions.
The front office is the main expense item for wealth managers and an area that must be put to its best use. Control functions are vital for managing the risk, compliance and legal aspects of transactions. That leaves the IT and back office functions, which are clearly candidates for outsourcing.
A bank opting for a comprehensive Business Process Outsourcing (BPO) solution could cut its IT and back office costs by 20% to 30%.
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Crédit Agricole Private Banking Services (CA-PBS) has worked hard to make Business Process Outsourcing (BPO) an important avenue for development at Crédit Agricole Suisse. -
Cost pressures and the growing complexity of financial products and how they are taxed are prompting more and more private banks to outsource their IT and back office functions. This trend is likely to pick up speed. -
Managing a back office requires not just increasingly advanced software, but also much more highly skilled personnel. -
Some may see confidentiality as an obstacle to developing an outsourcing activity. However, every bank that selects Business Process Outsourcing (BPO) is given its own database, separate from those of other banks.
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