Banks for You, Banks for Your Business, Fintechs

Fintech Outsourcing Philippines: How Technology is Leveling the Playing Field for Challenger Banks

on

    More in Banks for You:

    In the rapidly evolving world of financial technology, challenger banks are revolutionizing the way we think about banking. These digital-only institutions, unburdened by the legacy systems of traditional banks, offer streamlined, customer-centric services that appeal to a tech-savvy audience. However, behind their sleek apps and user-friendly interfaces lies a complex web of technological innovation and operational efficiency, much of which is increasingly being outsourced to the Philippines. This Southeast Asian nation has become a crucial partner in leveling the playing field for neobanks, offering a unique blend of cost efficiency, skilled talent, and technological prowess.

     

    Digital innovators and disruptors have emerged as formidable competitors to traditional banks by providing transparency, lower fees, and unparalleled convenience. Operating primarily online, they cater to customers who prefer digital solutions and demand seamless experiences. Yet, despite their advantages, these banks face significant challenges, from navigating regulatory landscapes to fending off cybersecurity threats and maintaining a relentless pace of innovation. Here, the strategic move to outsource customer service and back-office operations to the Philippines has proven transformative.

     

    The decision to migrate business processes to the Philippines is driven by several compelling factors. Foremost among these is cost efficiency. Labor costs are markedly lower than in Western countries, enabling challenger banks to allocate their resources more effectively. This cost advantage is not just about saving money; it’s about redirecting funds to critical areas such as technological development, marketing, and customer acquisition, which are essential for sustaining growth and competitiveness in the fintech space.

     

    The Philippines is also home to a highly skilled workforce, particularly in the fields of information technology and fintech. Filipinos bring technical expertise, adaptability, and a strong work ethic to the table, making them invaluable assets for fintech companies. Their proficiency in English and cultural affinity with Western nations further smooth the integration process, allowing for seamless collaboration and communication.

     

    Technological expertise is another significant draw for fintechs. The country has made notable advancements in various technologies, including software development, data analytics, artificial intelligence, machine learning, and blockchain. These cutting-edge technologies are critical for enhancing product offerings, improving customer experiences, and staying ahead in a fiercely competitive market. By outsourcing to the Philippines, digital banks gain access to these advanced capabilities without the burden of developing them in-house.

     

    Navigating the regulatory landscape is a daunting task for any financial institution, and challenger banks are no exception. Many Philippine contact centers have extensive experience dealing with international regulatory requirements, providing essential support in compliance, risk management, and legal standards adherence. This expertise is invaluable in ensuring that operations run smoothly and within the bounds of global financial regulations.

     

    Cybersecurity is another area in which the Southeast Asian archipelago excels. With financial institutions being prime targets for cyber-attacks, robust security measures are non-negotiable. The Philippines has developed a strong cybersecurity framework, with many firms specializing in protecting sensitive financial data. By leveraging this expertise, neobanks can bolster their security protocols, safeguarding customer information and maintaining trust.

     

    Customer experience is a key differentiator for fintech enterprises, and outsourcing enhances this aspect significantly. Filipino agents are renowned for their excellent communication skills and customer-centric approach, making them ideal for front-office roles. Providing 24/7 customer support ensures that inquiries and issues are addressed promptly, enhancing customer satisfaction and loyalty.

     

    Looking ahead, the prospects for fintech outsourcing to the Philippines are bright. The country is continually developing its infrastructure, and the government’s commitment to fostering the outsourcing industry ensures that it remains a top destination for fintech operations. As technology advances, the Asian BPO powerhouse nation is well-positioned to support the growth of neobanks and other fintech enterprises.

     

    In the grand narrative of fintech innovation and disruption, the Philippines has emerged as an unsung hero. By offering a unique combination of cost advantages, skilled talent, and technological expertise, it is helping challenger banks overcome operational challenges and compete with traditional financial institutions. As the fintech landscape continues to evolve, the strategic partnership between challenger banks and the country is set to drive unprecedented levels success, reshaping the future of banking as we know it.

    PostAd_coinrule_banner728x90

    Leave a Comment

    Your email address will not be published. Required fields are marked *

    *

    Beneficient Appoints Patrick J. Donegan to Board of Directors

    2024-10-04T11:00:00Z

    DALLAS, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled financial services holding company, today announced the appointment of Patrick J. Donegan as an independent member of the Company’s Board of Directors as of September 30, 2024. In addition to being an independent director, he was appointed to serve on the Audit, Products and Related Party Transactions, Credit and Enterprise Risk committees of the Board.

    Mr. Donegan brings almost thirty years of compliance, legal, banking and capital markets experience to Ben, having held various senior compliance positions, including as Chief Compliance Officer, for bank holding companies and broker dealers and as Assistant General Counsel for a securities company. Over the course of his career, Mr. Donegan has attained eleven FINRA licenses and two certifications from the American Bankers Association, including the Certified Regulatory Compliance Mangers designation, and currently holds a Certified Anti-Money Laundering Specialist certification.

    “Our Board worked to identify a new, independent director who would bring unique skills and senior experience to support Ben’s commitment to operate using industry best practices,” said Beneficient’s CEO and Chairman Brad Heppner. “I am pleased to welcome Patrick to Ben’s Board. Patrick’s extensive legal and regulatory compliance experience – specifically within the FinTech industry – will provide valuable leadership and governance insights to the Board.”

    Mr. Donegan received a Bachelor of Science in Accounting from St. John’s University and a J.D. from St. John’s University School of Law. Mr. Donegan currently serves as a Senior Adviser at Premier Consulting Partners, Inc., a consulting firm focused on operational risk evaluation and compliance, and previously served as the Global Chief Compliance Officer of OKX Group from August 2023 to January 2024. From 2015 to 2023, Mr. Donegan held various leadership positions at Signature Bank, including Chief Compliance Officer, Senior Vice President and Sanctions Compliance Officer. Mr. Donegan’s professional career has also included positions with a number of prominent investment banks, including Cantor Fitzgerald, RBC, Guggenheim, BNP Paribas and Nat West, and compliance roles at Mitsubishi UFJ and Hudson City Bancorp. Through his legal experience and compliance officer roles, Mr. Donegan has developed expertise in identifying risks and establishing policies and procedure to effectively manage those risks. Mr. Donegan’s understanding of banking and capital markets rules and the related regulatory processes will benefit the Company’s efforts to maintain industry best practices across the organization.

    About Beneficient

    Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds − with solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential exit options within minutes, while customers can log on to the AltAccess® portal to explore opportunities and receive proposals in a secure online environment.

    Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.

    For more information, visit www.trustben.com or follow us on LinkedIn.

    Investors

    [email protected]

    Contacts

    Matt Kreps: 214-597-8200, [email protected]
    Michael Wetherington: 214-284-1199, [email protected]
    Investor Relations: [email protected]

    Disclaimer and Cautionary Note Regarding Forward-Looking Statements

    Certain of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission (the “SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.


    GlobeNewsWire News

    Recent Comments