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5 Ways Banks Benefit From IT Offshoring Services
Since global Internet access and adoption have increased significantly, with over five billion Internet users worldwide, the number of individuals who use digital banking services continues to rise. According to the report from Grand View Research, the digital banking platform revenue in 2030 is forecasted to reach USD 107.1 billion worldwide.
This creates an opportunity yet tremendous pressure on the banking industry. Savvy strategists are aware that financial businesses that keep up with emerging technologies will not only survive but can prosper where others fail. In line with this revolution, there is a rising requirement for talent in the fintech area as organisations need to provide and ensure safe and secure digital financial customer experiences. The challenge is the scarcity of onshore engineers that are capable of developing, maintaining, and managing this effectively.
So, the prominent solution is engaging a high-performing offshore development team to fulfil this essential gap. Here’re reasons why offshoring is the sustainable solution to assist banks with their fintech capabilities.
1. Concentration on Your Core Competency
Developing an internal development team can be costly in terms of time and resources. Aside from providing financial services, you also need to concentrate on improving customer experiences, developing new product strategies, and managing compliance risks. These aspects alone require plenty of effort from the business end, which in turn becomes a never-ending distraction to the core responsibilities of the business.
Offshoring can help maximise your growth and profitability by effectively handling a high volume of time-consuming work. Moreover, by engaging with highly-skilled development teams, you can free up resources spent on tasks that you lack the knowledge for - or out of your abilities.
There’re many financial companies around the globe have successfully implemented this strategy. To develop a donation platform that supports mobile, smart devices, and websites called ”Shout”, ANZ bank required an experienced IT team from KMS Solutions to help them:
- Develop and maintain an end-to-end platform
- Access to the latest tech stacks such as Redux, ReactJs, SASS, Ruby on Rails, and more.
- Ramp up development teams by 6 times within budget.
By offshoring to a trusted IT service provider in Vietnam, the bank just needs to focus on its core business and leave the rest to the dedicated team. Ultimately, they still ensure the project’s effectiveness and reduce costs.
2. Wider Access to Skilful Engineers and Emerging Technologies
Offshoring IT services provides access to a larger talent pool specialising in the complications of banking. Among different countries, Vietnam is the top software offshoring destination, with 400.000 IT Engineers and over 50.000 graduated IT Students per year. As the country is recognised for its ability to develop low-cost high-quality software, banks can expect an average ROI of 30% thanks to reduced costs and improved productivity.
Technology advances rapidly, so offshoring your software development project gives you access to a team of agile and adaptable specialists who can manage discreet projects and provide support instantly.
Additionally, with the ever-changing customer demands for digital financial services, businesses in the BFSI sector are in a hurry to diversify their businesses and strive to implement a digital transformation ecosystem. Thus, accessing emerging technologies such as Big Data, Robotic process automation (RPA), automation testing, etc., is necessary.
Offshoring enables you to engage IT consultants who have the expertise and acumen to facilitate the employment of the correct solutions for their clients. From that, banks can improve customer experience with innovative mobile banking app features.
3. Quicker Delivery of Banking Services
An offshore banking team is dedicated to working entirely on your company's allocated responsibilities and not for anyone else. They are considered regular employees of your organisation, yet based overseas. With a high concentration on your business, they can deliver the product on a timely basis with high quality.
The offshore approach eliminates frequent recruiting stumbling blocks, such as applicants accepting other offers, time-consuming interviews, and a highly competitive market. Offshore teams have previously been thoroughly vetted, recruited, and trained. This may help firms minimise time to market by accelerating development momentum and ramping up digital teams to deliver banking services faster. More essentially, this will help improve customer experience.
Considering the case study of Asia Commercial Bank (ACB), the company found itself in need of a mobile-first strategy. Therefore, ACB engaged KMS Solutions, a competent technology partner, to help it release the MVP to end customers within only 4 months. Besides, KMS also assisted the business in incorporating extensive feature sets like bath processing, eKYC, signing activity tracking, one-time password (OTP), ACB Safekey, and more.
4. Strict Adherence to Data Security
One of the significant concerns in the BFSI industry is the safeguarding of sensitive data. However, there is also the common IT offshoring misconception that the company owner would lose control over the oversea team, which might jeopardise security and negatively impact service quality. Especially in this industry where banks are often the vulnerable target of cyberattacks.
It’s understandable to think this is the limitation of the offshore team. But it’s also essential to notice that you have complete control over the offshore team’s work procedures. This involves adhering strictly to your company's data security standards.
Moreover, the offshore workforce is priorly trained to utilise the appropriate tools, software, and digital platforms to meet clients' requirements and ensure cybersecurity in their work. It is strongly recommended to collaborate with an IT service provider that has accreditation from international data security standards. To comply with regulations, the oversea development teams must regularly conduct internal data security training for all offshore teams, which enhances the quality of the service they offer to your business.
5. Adaptability to Technology Trends
In a blindingly fast-paced digital environment, it could be overwhelming for bank owners to keep up. A dedicated overseas team has its pulse on the ever-changing technology trends and is able to adapt swiftly by making enhancements without causing company disruptions.
For instance, Startup Insights identifies one of the technology trends gaining traction in banking and investment services in 2023 is Artificial Intelligence (AI), with 23% of the respondents claiming. AI enables banks to deliver high-quality banking services while reducing operational expenses. AI-powered tools include virtual assistants, chatbots, and automated customer service interactions. AI-based biometrics detect fraud and improve security, as well as enhance AML applications and KYC checks.
As developing an AI-based mobile banking app requires intensive knowledge and skills from engineers, it’s time and resource-saving to have an oversea development team to help you handle such challenging tasks.
The Dedicated Offshore Staff Provider for Digital Banking Services in Australia
Banktech is here to stay. Now is an ideal opportunity for corporations to explore the value of offshoring development teams to future-proof their business.
KMS Solutions was born in response to the shortage of offshore IT talent for enterprises based in the Asian Pacific regions, especially Australia. With 13 years of experience in delivering fit-for-purpose solutions to global clients from different industries, including Banking, Retails, Telecommunications, and many more, we are proud of having qualified teams of tech talent from Vietnam to perfectly match every project’s requirements.
If you’re interested to learn more about how we can build your offshore team to support sustainable and significant growth for your business, contact us to book a free consultation.