As global internet access and adoption has increased significantly, with more than five billion internet users worldwide, the number of individuals using digital banking services continues to grow. Agreed A report by Grand View ResearchDigital banking platform revenue is projected to reach $107.1 billion worldwide by 2030.
This creates an opportunity, but enormous pressure on the banking sector. Savvy strategists know that financial businesses that keep pace with emerging technologies will not only survive, but can thrive where others fail. In line with this revolution, there is a growing demand for fintech talent as organizations need to ensure and deliver a safe and secure digital financial customer experience. The problem is the paucity of ground engineers capable of developing, maintaining and managing it effectively.
So the prominent solution is attractive high performance offshore development team to fill this essential gap. Here are the reasons why offshoring is a sustainable solution to help banks with their fintech capabilities.
1. Focus on your core competency
Building an in-house development team can be costly in terms of time and resources. In addition to providing financial services, you should also focus on improving the customer experience, developing new product strategies, and managing compliance risks. These aspects alone require a lot of effort from the business, which in turn becomes an endless distraction from the core responsibilities of the business.
Offshoring can help maximize your growth and profitability by efficiently handling large volumes of time-consuming work. Furthermore, by engaging with highly skilled development teams, you can free up resources that are spent on tasks that you lack the expertise for or are beyond your capabilities.
There are many financial companies around the world that 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 the latest technology stacks like Redux, ReactJs, SASS, Ruby on Rails and more.
- Increase development teams by 6x within budget.
By outsourcing to a trusted IT service provider in Vietnam, the bank just needs to focus on its core business and leave the rest to a dedicated team. After all, they still ensure project efficiency and reduce costs.
Read more. How an Australian bank grew its digital team 6x with KMS talent.
2. Greater access to skilled engineers and emerging technologies
Offshore IT services provide access to greater talent that specializes in the intricacies of banking. Among various countries, Vietnam is the best offshore software destination, with 400,000 IT engineers and more than 50,000 IT graduates annually. As the country is known for its ability to develop low-cost high-quality software, banks can expect an average ROI of 30% through reduced costs and improved productivity.
Technology is evolving rapidly, so outsourcing your software development project gives you access to an agile and adaptable team of professionals who can manage discrete projects and provide immediate support.
Also, with ever-changing customer demands for digital financial services, businesses in the BFSI sector are rushing to diversify their businesses and strive to implement a digital transformation ecosystem. Thus, access to emerging technologies such as Big dataRobotic Process Automation (RPA), automation testingetc. is necessary.
Offshoring provides an opportunity to bring in IT consultants who have the experience and insight to facilitate the deployment of the right solutions for their clients. Banks can then improve the customer experience innovative features of the mobile banking application.
3. Faster delivery of banking services
The offshore banking team is dedicated to working entirely on your company’s distributed responsibilities, not for anyone else. They are considered regular employees of your organization but are located abroad. Focused on your business, they can deliver the product on time with high quality.
The offshore approach eliminates frequent recruiting hurdles such as accepting applicants for other offers, time-consuming interviews, and a highly competitive market. Offshore teams have previously been thoroughly vetted, recruited and trained. This can help companies minimize time to market by accelerating development momentum and empowering digital teams to deliver banking services faster. More importantly, this will help improve the customer experience.
Considering the case study of Asia Commercial Bank (ACB), the company found itself in need of a mobile-first strategy. ACB therefore engaged KMS Solutions, a competent technology partner, to help it deliver the MVP to end customers in just 4 months. In addition, KMS also helped businesses incorporate extensive feature sets such as bath processing, eKYC, signature activity tracking, One Time Password (OTP), ACB Safekey, etc.
To learn more about how ACB can accelerate its development process, read the full story here.
4. Strict data security
One of the important concerns of the BFSI industry is the protection of sensitive data. However, there is also common misconception of IT outsourcing that the company owner would lose control over the overseas team, which could compromise security and negatively impact service quality. Especially in this industry, where banks are often vulnerable targets of cyber attacks.
It’s understandable to think this is a limitation of the offshore team. But it is also important to note that you have full control over the working procedures of the offshore team. This entails strictly adhering to your company’s data security standards.
Furthermore, the offshore workforce is pre-trained to use the appropriate tools, software and digital platforms to meet customer requirements and ensure cyber security in their work. It is strongly recommended to partner with an IT service provider that has accreditation to international data security standards. To comply with regulations, offshore development teams must regularly conduct in-house data security training for all offshore teams, which increases the quality of service they offer to your business.
5. Adaptability to technological trends
In a blindingly fast-paced digital environment, it can be overwhelming for bank owners. A dedicated overseas team has their pulse on ever-changing technology trends and is able to adapt quickly to make improvements without causing disruption to the company.
For example, Startup Insights identifies one of the most prevalent technology trends in banking and investment services in 2023: Artificial Intelligence (AI), claimed 23% of respondents. AI enables banks to deliver high-quality banking services while reducing operational costs. AI-powered tools include virtual assistants, chatbots, and automated customer service interactions. AI-powered biometrics detect fraud and improve security, as well as strengthen AML applications and KYC checks.
Since AI-based mobile banking application development requires intensive knowledge and skills from engineers, it is time and resource saving to have an outsourced development team to help you tackle such challenging tasks.
Dedicated offshore staffing provider for digital banking services in Australia
Banktech is here to stay. Now is an ideal opportunity for corporations to explore the value of offshore development teams to future-proof their businesses.
KMS Solutions was born in response to a shortage of offshore IT talent for businesses based in the Asia Pacific region, particularly in Australia. With 13 years of experience in providing fit-for-purpose solutions to global clients from various industries including banking, retail, telecommunications and many more, we pride ourselves on having qualified teams of technology talent from Vietnam that perfectly match the requirements of each project.
If you are interested in learning more about how we can build your offshore team to support the sustainable and significant growth of your business, contact us to book a free consultation.