The Benefits of Outsourcing Financial Services Call Centers


October 19, 2023

Written by

Milliscent Lucio

The financial services sector is characterized by a high degree of trust and reliance placed upon the companies operating within it. This trust is underpinned by the understanding that these entities are entrusted with the handling of immensely sensitive financial information, making the stakes of their operations incredibly high.

Given the weight of trust and expectations, financial services companies must deliver the highest quality services. It is more than a preference but rather a necessity. To meet and exceed these expectations while ensuring integrity in financial transactions, many companies turn to the strategic approach of financial services call center outsourcing.

You may ask, why not just hire an in-house call center for financial services? Before answering that, let us first discuss what exactly a financial services call center does.

The Role of Financial Services Call Center

Financial service companies offer an array of services related to the management and handling of finances. Many of these financial transactions are traditionally done through in-person, face-to-face interactions. However, the landscape has evolved significantly with the advent of the financial call center, which has emerged as an alternative for most transactions.

The responsibilities undertaken by these specialized call centers are expansive, encompassing a spectrum of financial activities. Among the various tasks they manage are balance inquiries, bill payments, and deposit operations, to name a few. It is essential to underscore that while these examples provide a glimpse into their operational scope, the versatility of financial services call center solutions extends far beyond these facets, catering to an extensive repertoire of client needs.

One of the significant advantages offered by these call centers is their capacity to alleviate the congestion and client traffic traditionally associated with brick-and-mortar financial institutions. By fielding a substantial proportion of client inquiries and requests, they serve as a dynamic buffer that streamlines and expedites the transaction process. Consequently, this operational synergy translates into faster, more efficient transactions and, by extension, increases overall customer satisfaction.

Challenges Faced by In-House Call Centers

If a call center is an integral part of financial institutions, why shouldn’t they just create an in-house call center financial services department? Well, that’s easier said than done.

Here are some challenges encountered in maintaining an in-house financial services call center:

  • Finding Capable Staff

The financial industry requires people who are highly capable in financial matters. Onboarding staff takes time and other resources. There’s also the matter of regular training programs to keep the accountants up-to-date with the latest trends and practices.

  • Evolving Technology

This digital age sees the rapid development of technology. Financial institutions, especially for small to mid-sized enterprises (SMEs), may have a hard time keeping up. But even if they want to, upgrading technology costs a significant amount of money.

There’s also the fact that the number of choices might be overwhelming for some companies. Some tools are easy to use, while some might need a more expert hand.

  • Around-the-Clock Availability

Financial institutions must also consider clients whose schedule doesn’t align with the sales hours. This requires a more extensive in-house staff and an alternating shift, potentially overworking your employees and lowering your service quality.

Understanding Financial Services Call Center Outsourcing

Considering the above-mentioned challenges, you can see why creating or managing an in-house financial services call center is tough. So, instead of expanding or establishing an in-house call center, financial institutions turn to call center outsourcing services.

Outsourcing refers to hiring a third-party company to perform specific business processes. In this article’s case, this refers to financial call center services outsourcing. This strategic choice represents a paradigm shift, as it signifies a change from the traditional model of in-house call center management towards a more streamlined and efficient approach.

These are business processes that commonly need the aid of financial services call centers:

  • Inquiry

This service involves answering client inquiries about a product or service. Clients can ask the agents about the price, the product description, or if there are stocks available.

  • Cancellation

Cancellation is when a client wants to terminate a service they are currently subscribed to or a product that is yet to be delivered. This usually happens in subscription-based services. 

  • Refund 

Refund is when clients request their money back from a paid product or service. This usually happens when a product is defective or there is an unauthorized transaction using the caller’s account.

Outsourcing is not just convenient; it also shows dedication to giving the best service to their clients. Keep on reading to know more about how call center outsourcing service benefits financial institutions.

The Benefits of Outsourcing Financial Services Call Center

Outsourcing call center services is a boon for financial institutions. Here’s a breakdown of its major contributions:

Cost Savings

  1. Reduced Labor Costs

There’s a lot that goes into the onboarding and maintenance of employees. Salaries, benefits, overhead costs, and other expenses must be considered. This is unsustainable for small companies with limited resources.

Outsourced call center services are usually paid on a subscription basis, saving you a lot in the long run. The expenses mentioned above are taken care of by the third-party company.

  1. Elimination of Infrastructure Expenses

Besides employee costs, onboarding also comes with infrastructure expenses. You may need to spend on renovations and additional equipment to accommodate the additional employees.

You don’t need to worry about infrastructure when you outsource call center service, especially in the case of nearshore or offshore.

Scalability and Flexibility

  1. Ability to Handle Seasonal Fluctuations

There are peak seasons and low seasons. Peak seasons are the busiest time of the year, so you might need much more manpower than usual. Low seasons, meanwhile, refer to the opposite.

Outsourcing makes it easier to downsize or upsize depending on the season.

  1. Quick Scaling for Business Growth

Growth is the number one aim for your business. Growing means you need to add more people and expand your space. But that doesn’t have to be the case always.

You can expand your business by outsourcing instead. It even has the advantage of expanding your reach globally when you outsource from nearshore or offshore companies.  

Access to Skilled Expertise

  1. Specialized Financial Knowledge

There’s no need to allocate time and other resources to onboarding. When you engage the services of an outsourcing company, you effectively tap into a reservoir of dedicated experts who are adept at their craft and are readily available. 

This ensures that your organization gains access to a pool of highly skilled professionals without the long timelines typically associated with onboarding. In this fast-paced world, outsourcing enables companies to secure the financial expertise they require swiftly and seamlessly.

  1. Technological Expertise

As previously mentioned under the technical challenges, it may be hard to keep up with the rapid development of technology. Even when a company invests in state-of-the-art equipment, the imperative of training agents to harness these tools to their fullest potential becomes a necessity. For SMEs, this requires their employees to multi-task, possibly leading to overworking.

Outsourcing companies strive to be on top on their game and equip themselves with the latest industry technology. Their skilled agents are given intensive training programs, allowing them to utilize these tools fully.

Enhanced Focus on Core Business

  1. Allowing In-House Teams to Focus on Strategic Tasks

Outsourcing allows you and your in-house team to focus on your core competencies and strategic tasks. There are no additional tasks that will divide your employee’s attention, improving focus and overall service.

  1. Improved Allocation of Resources

Resource allocation is the process of organizing your company assets in terms of task distribution. By knowing where to assign each task, you prevent mistakes and maximize your return on investment (ROI).

By delegating these non-core functions to specialized entities or partners, you prevent your distractions and potential bottlenecks on your core operations. This, in turn, fosters an environment conducive to the delivery of services marked by unparalleled quality and heightened productivity.

Considerations When Outsourcing Financial Services Call Center

  1. Selecting the Right Outsourcing Partner

You don’t partner with the first company you find. You first need to know your company thoroughly and do a lot of research.

Consider the following factors when choosing an outsourcing partner:

  • Define the Scope of Work

What exactly does your business need? What do you want to achieve by outsourcing? These are the basis of your scope of work.

Outlining your needs and the possible solutions allows you to narrow down your choices. This process of careful consideration and strategic assessment empowers you to hone in on the most fitting choices, ensuring that your outsourcing endeavors are calibrated to deliver optimal results.

  • Shortlist Potential Partners Based on Expertise

After identifying your business needs and goals comes the task of shortlisting possible partners. Carefully review their services, equipment, and experiences. The success of your partnership hinges on your partner’s expertise.

  • Inspect Past Client Reviews

Obviously, a company won’t display its vulnerabilities and negative reviews. Therefore, it's imperative to delve into the reviews provided by their previous clients, as these can offer valuable insights into any unaddressed weaknesses or potential setbacks. 

These testimonials from past clients provide a unique vantage point from which to assess the strengths and areas for improvement of the prospective partner, aiding in your informed decision-making process.

  • Consider your Budget

Of course, you can’t forget about your budget. 

More often than not, premium services entail premium expenses and vice versa. If your resources are constrained, you need to balance staying on budget and finding a quality partner. 

An additional advantage to seek in a potential partner is flexibility, particularly in their willingness to accommodate customized service packages. This flexibility can prove invaluable, allowing you to tailor the partnership to align with your budgetary restrictions while ensuring your essential needs are met.

  1. Data Security 

Financial services entail the handling of highly sensitive data. Therefore, when outsourcing, it becomes imperative for your institutions to employ robust protective measures and establish clear guidelines for the secure handling of such sensitive data.

  1. Cultural and Language Considerations

If you plan on expanding your institution’s reach, you also need to consider the language capabilities and cultural idiosyncracies. After all, you don’t want to offend a client during an interaction accidentally. 

In this case, your options are to outsource from an offshore company. By leveraging offshore partners' expertise and cultural familiarity, you unlock a valuable opportunity to bridge language gaps and navigate intricate cultural intricacies with finesse.

Navigating Outsourcing Options

The decision to embrace outsourcing within the financial industry is a pragmatic response to the multifaceted challenges posed by in-house call center management. It reflects an industry-wide recognition of the advantages of strategic partnerships with specialized service providers, ultimately enhancing operations and client satisfaction in an evolving financial services landscape.

Outsourcing operates as a catalyst that cultivates a workplace that allows utmost concentration and devotion to core competencies within your company. It empowers your in-house team to operate in an environment where distractions are minimized, enabling them to deliver services with unwavering precision and excellence.

To ensure a successful outsourcing endeavor, you need to find the right partner. Why not try New Media Services’ financial services call center outsourcing?

NMS agents are capable and trained with the latest trends and practices regarding billing call center services. This commitment to continuous learning and refinement ensures that our agents are at the forefront of industry knowledge, ready to tackle your financial services with competence and proficiency.

Set the stage for an outsourcing venture characterized by reliability, quality, and operational excellence. Contact us!

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