Traditional banking practices and cash handling present numerous challenges and inconveniences. Because of this, the FinTech industry is thriving. Even a FinTech startup can quickly ramp up operations with the assistance of a third party — Fintech outsourcing.
What is FinTech Outsourcing?
FinTech, or Financial Technology, enhances and automates financial services and processes and is required to transition to a cashless society. With over 20,000 FinTech businesses worldwide, FinTech is one of the fastest-growing tech sectors. By 2022, the industry was worth more than $26 trillion.
Financial technology companies use FinTech outsourcing as a business strategy. In this case, a company hires a third-party service provider to handle a portion of its operations. This move reduces the workload for their in-house team while allowing the company to focus on core activities.
What are some of the services that a FinTech business can outsource?
FinTech entrepreneurs can outsource many business processes, including IT services, product development, and customer service.
Here are a couple of examples:
Outsourcing of IT Services
Using emerging technologies is at the heart of every FinTech company. As a result, among the most commonly outsourced services for FinTech projects are IT services and software development teams. Among these IT outsourcing services are:
- Services for app development
- FinTech software maintenance IT product development
- App support or administration
- Help with technology
- Website creation
- Services for data management
Outsourcing of Call Center Services
FinTech companies can also outsource call center services. This enables their end users and clients to communicate with the brand more effectively. FinTech companies can outsource inbound and outbound call center services like:
- Customer service
- Services for multilingual support
- Support via all channels (e.g., live chat, email, etc.)
- IVR stands for Interactive Voice Response (IVR)
- Survey or research
Back Office Outsourcing
Back-office outsourcing frees up time for FinTech companies to focus on more important tasks. Back-office services that can be outsourced include:
- Marketing on the Internet (e.g., SEO, social media management, PPC, content moderation, etc.)
- Legal assistance
- Remote Assistance
These are just some of the services that a FinTech firm can outsource. With the vast array of outsourcing services available in the BPO industry, there are bound to be additional services for FinTech outsourcing.
Outsourcing Fintech Software Development
If you’ve determined that the benefits of outsourcing outweigh the drawbacks, you’re ready to move forward with outsourcing fintech development.
Determine your requirements.
Discuss with stakeholders the company’s objectives for working with an outsourcing firm. For example, it could be as simple as hiring a few more developers to finish a large project. It could be to hire a team to control a specific project. It could also be to acquire the required developer skills but not present on your in-house team. Consider soft skills such as good communication and a track record of strong teamwork.
Take into account the location.
You can quickly narrow your search by selecting a general region from which to select an outsourcing vendor. Providers in the United States are a good choice because their time zones and languages are similar. However, they are usually more expensive. Eastern Europe has talented professionals at a reasonable price, but the time zone difference can be an issue. South America provides an advantageous combination of time zone and language compatibility and competitive pricing.
Gather preliminary options.
To find potential outsourcing vendors, seek recommendations from colleagues or use sites such as GoodFirms, Clutch, Glassdoor, or LinkedIn. Check that each one can perform the work you require and provide the level of customer service you require.
Examine each company.
There are numerous methods for determining whether an outsourcing provider will be a good fit for your requirements. First, look over the company’s website to see if its experience is a good fit. Check out the site and other customer reviews, such as Google. If you know anyone who has used the service, seek feedback from colleagues. Finally, ensure that the company follows fintech rules and regulations and provides security testing as part of its services.
Limit your options.
After gathering external information, select 3 to 5 vendors and speak with them in person or via video call. Prepare a list of questions, such as how they would handle specific situations or what programming languages their developers use.
Outsourcing Aids Fintech Expansion
More digital options for financial transactions are constantly being developed. Outsourced services, such as software development, business process outsourcing, and customer care, are some of the best resources available to the fintech development companies that make it happen.
Commonly used outsourced services in the fintech industry enable team expansion while also assisting these companies in bringing in needed talent, reducing or eliminating the time-consuming search for talent, and saving money. Finally, outsourced services in the fintech industry contribute to the smooth operation of the financial system.
While some of these relationships can and do fail, many are more successful and allow fintech operations to provide convenience to banks, retailers, and other businesses and service users.