Banks: A Challenging Investment Opportunity for Outsourcing Companies
Opinions varied among a number of banking experts and technology sector officials regarding the role that outsourcing companies can play in serving banks and cooperating with them to improve the efficiency of their operations and reduce operating costs.
While the head of an Egyptian company working actively in outsourcing believed that it is possible to work with the banking sector while complying with all security standards and regulations to which his institutions are subject.
A banker confirmed that Egyptian banks prefer to manage and operate call centers internally themselves to preserve the confidentiality and privacy of customer data and their desire to communicate with them directly without the need to assign this task to parties outside the banking system.
Abu Al-Dahab: The sector can provide 9 diverse services to it while complying with security standards
Ahmed Abu Eldahab, CEO of BDO Esnad, said that the outsourcing industry offers great opportunities for external and local service companies to support the banking sector, which focuses on improving efficiency and reducing costs. He pointed out that outsourcing services in this field include digital transformation operations, customer support, data analysis, and automation of financial operations, which helps banks focus on developing their core services and meeting customer needs more effectively.
Abu Al-Dahab also listed the opportunities available for the outsourcing industry in the banking sector, including, for example, digital expansion, as digitization provides outsourcing companies with opportunities to provide integrated services for digital support and management of electronic channels, in addition to regulatory compliance, as outsourcing companies provide specialized solutions to comply with banking laws and security standards, which facilitates meeting control requirements.
In addition to reducing operating costs by taking advantage of outsourcing operations to achieve high quality and reduce expenses.
He considered that there are challenges facing outsourcing companies, represented in compliance with regulations, especially since companies must adhere to high security standards due to the large number of regulations, in addition to the fierce competition, as the outsourcing sector faces great competition, which may affect profit margins, and rapid technological development, as companies need to invest continuously to keep pace with technological updates.
He called for a package of government facilities required to support the sector, such as governments providing tax exemptions to encourage companies to support investment in outsourcing, and the existence of an advanced infrastructure through the establishment of modern data centers and fast, secure communications networks to support high-quality services, in addition to the importance of launching training and qualification programs in cooperation with educational institutions to develop the skills of the local workforce in the areas of outsourcing, taking into account the large numbers of graduates from colleges and institutes specialized in the banking sector.
Abu Al-Dahab identified a set of basic requirements to ensure the provision of safe and effective services to the banking sector, including compliance with security standards. Therefore, banks must ensure that companies adhere to security standards such as ISO 27001, PCI-DSS for data protection, and SOC2, in addition to implementing data protection laws and ensuring compliance with data protection laws such as GDPR or its local equivalent, and the importance of outsourcing companies’ compliance with internal and external compliance requirements through periodic and transparent reports.
It also includes ensuring that work teams are trained periodically to ensure the provision of high-quality services, in addition to verifying the ability of outsourcing companies to manage operational and security risks.It also includes ensuring that work teams are trained periodically to ensure the provision of high-quality services, in addition to verifying the ability of outsourcing companies to manage operational and security risks.It also includes ensuring that work teams are trained periodically to ensure the provision of high-quality services, in addition to verifying the ability of outsourcing companies to manage operational and security risks.
He continued: There are 9 services that can be assigned to outsourcing companies in the banking sector, which are represented in the technical support service by responding to customer inquiries and providing technical support through various channels, in addition to providing data analysis services to extract insights that help in developing products and raising efficiency, and managing back office operations, which includes processing transactions, financial settlements and preparing reports, as well as debt collection (Collections) by providing debt collection services to defaulting customers in legal and professional ways.
In addition to digital marketing campaign management services such as search engine optimization and social media management, recruitment and appointment through attracting and employing specialized competencies in the banking sector, as well as providing integrated payroll outsourcing services, ensuring accuracy and compliance with regulations, designing training programs to develop banking skills and update cadres, and finally organizing performance evaluation processes to improve employee productivity.
Banker: Sensitivity of customer data and quality of service are behind running it in-house
A banking official said that banks prefer to operate internal call centers themselves rather than outsourcing to external companies for several reasons, including maintaining data privacy and security, especially since they deal with sensitive customer data. Therefore, controlling the management of the call center internally is a better option to ensure the protection of this information and reduce the risk of data leakage or unauthorized access.
The official, who declined to be named, explained that the second reason is to ensure the quality of service, as banks apply strict standards that are difficult to fully achieve when relying on external companies, as this can affect the quality of communication and rapid response to customer requirements.
He added that banks also need to respond quickly to changes in products, services or policies, noting that by managing the call center internally, the bank can quickly train employees on any changes, and ensure that they are always up to date with the latest developments.
He pointed out the importance of direct interaction with the bank’s customers through the presence of an internal call center so that the bank can build a stronger relationship with customers and provide a service that is in line with its identity and culture, which enhances their loyalty and trust, considering that managing the call center internally may be costly at first, but it is beneficial in the long run, as it allows the bank to have full control over operational costs and improve efficiency.
