Banks and other financial institutions use BPO services, a highly specialized technique for supporting account activities and business acquisition services across the customer's banking lifecycle. Included are financial and internal management reporting, budgets, capital management reporting, and regulatory returns. Banks can save money on high-quality services thanks to outsourcing. Deloitte reports that an increasing number of businesses are using banking BPO services to cut costs and diversify their sources of supply.
Financial services outsourcing is necessary for banks because it allows them to boost their efficiency by providing numerous features to their customers, such as 24/7 hour support, responding to client inquiries via many channels such as social media, chat, and email, and capitalizing on sales opportunities that are not limited to geographic regions. In addition, BPO modules have changed significantly in the last few years. The market expansion can be attributed to the fact that older BPO methods, like cloud computing and mobile apps, are increasingly being adopted by banks that were early adopters of the practice. The adoption of BPO in the BFSI sector is predicted to rise in the coming years as banks emphasize maximizing the effectiveness of their operational and business processes.
Although traditional BPO services have been in use for decades, the rise of the business may be attributed to the widespread adoption of technology like the Internet of Things, artificial intelligence, and robotic process automation. Increases in technical innovation in Asia-Pacific countries like India, China, Australia, and Singapore are anticipated to open up several promising markets for BFSI BPO service providers. Bank operations are kept on schedule without the need for human intervention thanks to robotic process automation technologies and the automation of procedures. Similarly, various chances for market expansion are presented by integrating advanced technologies such as Ucaas Solutions, AI, and others with BPO services in banking institutions.
North America is the most significant shareholder in the global BFSI BPO services market and is expected to grow at a CAGR of 8.74% during the forecast period. Significant growth in the use of BPO services has been observed in the United States, and this trend is anticipated to continue over the forecast period. In addition, because of the rising interest in cloud computing, BPO firms may offer their customers individualized service. Customers' preference for online services over traditional ones is driving expansion in the regional sector. The increasing rate of digitalization in the region, the growing number of young people familiar with advanced technologies, and the expanding public's familiarity with the products are all fueling the market's expansion.
Europe is expected to grow at a CAGR of 9.18%, generating USD 59.652 billion during the forecast period. The BFSI BPO services market is growing because of the demand for customized services, which forces businesses to focus on their core business and is especially important in the current economic climate. Technology has also led to the replacement of traditional banking service contracts with ones with outsourced service providers. As a result, the market benefits from the widespread adoption of cloud computing, cheap data storage, increased automation, and digital processing platforms.
Several factors contributing to the Asia-Pacific rapid development include emerging economies, rising interest in business process outsourcing (BPO), and increased use of technology in the business financial services industry. India, China, Japan, Australia, Hong Kong, New Zealand, and Singapore have the highest BFSI BPO services market penetration due to their rapid economic development and increasing standard of living. The expansion of the BFSI BPO services market in the region can be attributed to the increasing popularity of fee-for-service plans and other variable-cost alternatives to fixed-cost structures, as well as the associated tax benefits.
The global BFSI BPO services market’s major key players are Accenture PLC, Cognizant, Concentrix Corporation, Genpact, Infosys Limited, Mphasis, NTT Data Corporation, Tata Consultancy Services Limited, and Wipro Limited.