Outsourcing To BPO Companies: An Effective Solution For Fintech Startups

Apr 15, 2022

The fintech industry is growing exponentially, owing to the surge in mobile wallets, digitized money, paperless lending, and much more. The global fintech industry saw a record funding of over $131.5 billion in 2021, and the number is expected to get bigger in 2022.

However, despite such explosive growth, this industry still lacks one key ingredient: skilled talent. According to KPMG‘s Anton Ruddenklau, “Bridging the digital skills gap is a major challenge, not only for established companies in financial services but for fintech startups looking to grow and for countries looking to establish or expand their digital economies and fintech ecosystems.”

This is where outsourcing comes into play. Many fintech startups are looking at Business Process Outsourcing (BPO) companies to fulfill their hiring requirements due to the multiple benefits they offer.

Here are some ways BPO companies can help fintech startups.

Access to top talent

Fintech companies often lack the talent pool required to meet their hiring requirements. Without a competent workforce, these companies would be unable to bank on this era of digital transformation that requires creativity, innovation, and adaptability to the changing market conditions. This is why they are leaning towards outsourcing as an effective way to find better talent at affordable rates.

BPO companies train their employees to meet the standards set by these fintech startups. It involves providing them with the correct product knowledge, technical support, customer engagement tactics, and other essential skills required to work in this domain. Additionally, with remote work being the norm, these startups seek virtual solutions to bring cost savings and operational efficiency, which becomes easier with BPO companies taking charge. 

Better Data Handling

The digital age holds a high prominence towards data in general. Fintech companies are no different in this regard. Since they deal with sensitive customer data, the last thing they would want is for their information to fall into the wrong hands. 

BPO companies have the experience and expertise to deal with such data. Their employees are well-trained to handle customer data with care and caution. Additionally, these businesses have the required infrastructure in place to keep this data safe and secure.

To protect data, outsourcing partners equip themselves with well-tried analytics tools, comprehensive dashboards, and cybersecurity specialists. Additionally, they can partner their in-house teams with the analytics and data science teams of the BPO company for better insights and decision-making.

Reduced costs

One of the main reasons why startups outsource is to keep their costs low. BPO companies offer cost-effective solutions for businesses in need of quality services without breaking the bank.

Fintech startups often find it difficult to manage costs as they are constantly expanding and need to invest in new technologies. While the company can focus on the core processes, it can outsource non-core ones to BPO companies at a fraction of the cost. 

This helps the startup to scale quickly and efficiently, without having to worry about hiring and training new employees. In addition, it also frees up the startup’s resources to focus on more important tasks.

Also read: Common Debt Collection Myths and Misconceptions, Debunked

Improved flexibility 

Startups require a lot of flexibility in their operations to meet the market’s ever-changing demands. It is not always possible with an in-house team as employee churn may not be feasible financially.

With outsourcing, however, companies have the advantage of scaling up or down their delivery teams when required. This improved flexibility allows companies to test new frameworks or concepts without hiring more staff. Their outsourcing partner will do that for them.

BPO companies can be contracted with no long-term commitments, thus allowing companies to bring in new talent when needed without the risk of it being a bad fit.

Improved Networking and Communication 

The fast-paced nature of the fintech industry makes it difficult for startups to keep up with the competition. They need to be constantly in touch with the latest developments, which can be a challenge when all their focus is on meeting deadlines and launching new products/services.

BPO companies can help them stay updated about the latest trends through their regular interactions with other clients. This way, they can avoid the cost and time associated with research.

Additionally, these companies have a network of industry experts that fintech startups can leverage to get insights on the latest happenings.

Takeaway

The fintech industry is booming and is only set to grow in the years to come. To keep up with this growth, companies are turning towards BPO companies as an effective way to find and hire better talent at affordable rates. With the right outsourcing agency, companies can enjoy a host of benefits and stay future-proof in the ever-changing fintech landscape.

Also read: How Can Your Business Benefit From BPO Services?

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