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How outsourcing of lending administration can boost digital transformation in the banking industry

Mattias Nilsson / October 14, 2020

Digital transformation is high on the agenda for the banking industry with new competitors popping up and an increasing demand for digital services. Gaining ground in this competitive market demands a focus on product development and the customer journey.

Mattias Nilsson, Senior Manager Service Delivery in the Credit Solutions and Services unit at TietoEVRY, shares five ways outsourcing of lending administration can help you focus and support your digital transformation.

Financial services have changed a lot in recent years with customers demanding smooth onboarding, fast payments and digital self-service. Banks need to focus on core processes and invest in digitalization – or risk losing market share.

One way to have the time to focus on these essentials while speeding up digital transformation is to outsource lending non-core processes to a partner. Several big players in the financial market have teamed up with TietoEVRY Credit Financial BPO unit to do just this. Based in Kalix in the north of Sweden, the unit is a strategic outsourcing partner that focuses purely on credit administration. We provide origination services, contract lifecycle services, and retention and loyalty services.

At the time of writing, we’re in the middle of a pandemic and we’re all learning how to adapt to a new reality. When we come out the other side, outsourcing will be even more relevant, especially for certain processes. So, here are five ways outsourcing of lending administration can help financial institutions and enable them to concentrate on their digital transformation.

Cut costs and invest in transformation

Based on 30 years of experience within lending administration, an outsourcing partner like TietoEVRY has efficient processes and invests in supporting tools across several customers, so the cost of these services to you is a fraction of what it would be if you did it yourself. For example, our team helps banks handle variable volumes, cutting costs as well as managing peak loads in an efficient way. What you save can be invested in modernizing your business and transforming your products for the future.

Spend time on innovation

Administering financial products is personnel demanding. To support the full credit lifecycle a bank needs to employ credit administrators as well as staff experienced in compliance, risk and management. Working with an outsourcing partner frees up your employees’ time and they can drive product development and your core competencies instead.

Shorten time to market

In our experience, financial institutions want to strengthen their portfolio and launch new products quickly. An outsourcing partner with proven short time to market is an important asset. Banks can focus on developing new products and services, instead of hiring personnel and investing in tools or customer service. In the digitalized world, demand shifts fast and a short time to market partner could be a big advantage in driving digitalization.

Reduce risks

With a proven and compliant administration partner, you do not have to spend time making sure you adhere to compliance rules and regulations – that’s all taken care of by the outsourcing partner. And at TietoEVRY, our Nordic team really understands local regulations so we can offer much more complex processes such as administration of estates, fraud and debt restructuring.

Access skilled experts and increase customer satisfaction

Many companies struggle with employee attrition and a lack of competence across all business areas. With a strategic outsourcing partner you can access expertise knowledge and deliver high end customer satisfaction in a digitalized world. For TietoEVRY, being based in the Nordics makes us an ideal partner for Nordic financial players. Despite a rise in self-service, consumers still want personal customer service, especially when dealing with important or sensitive issues. This is when local presence and local knowledge really helps to meet expectations. Earlier this year Brilliant Futures recognised TietoEVRY Credit Solutions for their excellent customer service with an award.

Interested in learning more? Contact me or visit our Financial BPO webpage!

 

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Mattias Nilsson
Senior Manager Service Delivery, Credit Solutions & Services, TietoEVRY

Mattias Nilsson

Senior Manager Service Delivery, Credit Solutions & Services, TietoEVRY

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