Outsourcing Trends That Will Help the Banking and Finance Sector Grow

With increasing plastic money, higher purchase capacity and globally increasing customer base the outsourcing in the Banking, Finance and Accounting sector is not going to take a dip. However, there will be some key market areas that will drive the business. A couple of days ago, I was reading a research report and realized that these predictions were actually very insightful. They predicted the following areas:

Mortgage market
The mortgage market is slowly bouncing back. However, the investors as well as buyers are still cautious, focusing on hedge funds before they start refinancing etc. This is only because it’s prudent to play safe, in spite of the obvious spike the market sees. But, one of the major differentiating factors that may restrict the outsourcing of such processes beyond a point is that, the domestic service providers may be able to support some functions like compliances etc. better than an offshore teams.

Risk and Compliance
So far this is an area that was very reluctantly outsourced to destinations like India. But during recession, such operations have almost doubled up. There’s a dearth of both resources and the time needed to implement all regulations. Hence much of such work could be handled very efficiently in the outsourced scenario. However, this is something that will depend upon the consent of regulators and that will decide whether or not this avenue opens up for outsourcing.

Credit Card Business
This is one area in banking and financial services that has expanded drastically over the last few years. The main reason being people’s increasing tendency to use plastic money. Credit cards however are no longer just restricted to the English speaking countries; but are gradually expanding across multiple other countries. So, one of the driving factors in this case will be location-specific service offerings.

Further service providers – who’ll be able to club fraud detection with the routine customer service and other package deals – will have leverage over the others.

Payments
As technology develops, lots of older methods of financial interactions and older banking and finance products and services are slowly declining in volume. However, they are still core to the business and might not disappear for a long time to come. This will mean that service providers will have to look into options related to aggregation play, handling multiple clients. This will also mean that if successfully handled, such aggregated offerings will be a long term prospect for the service provider. It will make better business sense for the offshore teams however to also look into the electronic payment scenario to be able to innovate in future.

Mobile Banking
Mobile banking is another area that’s going to expand by leaps and bounds because financial institutions will now use mobiles as a primary tool to interact with different groups of customers. This means that there will be outsourcing opportunities not just in platform development, but also in analytics and service and support. Regulatory requirements will need to be followed religiously though.

Commercial Lending
This has long been considered a complex area to be outsourced to BPOs, so this segment will continue to find its place in the KPO segment. However, with a huge increase in experienced and qualified professionals in the area, this might prove to be a potential avenue. Further, clubbed ventures where off shore and onshore teams work in sync will also be looked up to as a very substantial and viable option.

Based on the above, it is clear that outsourcing whether KPO or BPO is yet to offer a lot more than it already has, more so in the financial services domain

Start a Career in the Growing Banking and Finance Industries

You may have thought that financial catastrophes of the past two years had completely decimated the banking and finance industries.

Guess again.

Although these sectors of the job market did experience heavy lay offs, signs of new life are emerging. In a the June 28 article “Finance Firms Rev Up Hiring,” The Wall Street Journal reveals that 6,800 finance jobs were added between February and May, the largest three-month increase in the past two years. The article adds that starting salary offers are up to 40% higher than they were one year ago.

So if you were considering a finance career once upon a time, but got scared off by the financial ups and downs of the past 24 months, now is the time to get back on track. Here’s a look at 3 hot finance careers and the degrees you’ll need to get started.

Banking Careers
According to the WSJ, banking positions are currently some of the most desirable. Whether you want to work at a large corporate bank or a smaller boutique firm, banks are one of the cornerstones of the economy, protecting money and lending money to business across the country. Financial managers, commodities agents, accountants, and computer specialists are just a few of the professionals that make a bank run.

Insurance Careers
Whether we like it or not, insurance is something we all need, which is why insurance is another hot career option the WSJ puts at the top of their list. But insurance professionals do more than just sell you policies for your new car; they are involved in maintaining accounts, handling claims, and advising their clients on risk management, financial planning and investment strategies.

Loan Officer Careers
Within the banking careers, there is one group of professionals who we’ll all need to go visit at some point in our life: the loan officer. These men and women use their expertise in finance and credit to determine what the best loan is, who’s eligible, and what the terms should be.

Ready to Get Started?
Earning a finance degree will give you the skills and background you need to enter one of the financial careers described above. To get started, visit this career profiles page for additional career and finance degree information.

Best Careers in Banking and Finance

Banking involves a number of areas, specializations and a wide range of roles. Careers in banking and finance can be a very exciting option but given the vast and varied industry that it is, arriving at a career path and making a choice to follow it, can sometimes be daunting. In addition, the vast number of designations and specializations in each area differ from bank to bank and sometimes there might also be overlaps in certain areas. However it is a given that the number of career opportunities within banking and finance are numerous. For example, some careers might involve client interaction, some might be operational in nature, and some would involve trading and derivatives and so on and so forth.

Large investment banks are usually divided into two main areas: corporate finance or investment banking and sales & marketing with trading. Careers in banking and finance in an investment bank usually involves capital raising, debt and equity, mergers and acquisitions, services involving financial advisories and in some areas activities concerning merchant banking. Within the sales and trading division an employee might be engaged in analysis and research, distribution and brokerage of trading securities amongst other such activities. It is important to know the difference between the numerous functionalities within an investment bank during your quest for the right career path in banking and finance.

If you are a young graduate who has just passed out from a management school or college, you might want to enroll in a specific training program or banking internship that will provide you the valuable opportunity of gaining an understanding of what a financial institution is all about and kinds of opportunities available. These specific programs in different banking departments maybe of varying nature; some programs may offer a cyclical structure in various areas while others might have a specific emphasis on a particular specialization. An internship that offers a cyclical structure can give you the chance of experiencing the various opportunities available in a particular department within the bank. Prior to entering into an internship program or graduate plan, remember to look into the duration of the program. At the end of the day, irrespective of the kind of program you enrol in, a good internship will give you valuable knowledge about the basics of banking or finance before you even start on your career path. In addition to the technical and soft skills needed to succeed in careers in banking and finance, a good training program will also offer you an inside knowledge about the institution’s vision and strategy and a broad introduction of what the company stands for.

Careers in banking and finance are usually well paying, but if you are starting out your career as an intern do not look at the salary, rather look at the reputation of the banking or financial institution you are going to be a part of and the valuable knowledge that you will gain for your future.

Breakthrough Moves of Banking and Finance Industry

Banking and finance industry is facing new spheres with the developing technological trends and fast upgradation of latest IT industry platforms. All these changes are incredible and helping banks to grow towards upward direction, assisting them to support their clients, business houses and SMEs. The banking and finance industry is experiencing the changing roles of physical retail in a multi-channel banking environment on day to day basis. This is the reason they are taking initiatives in research and development, impact of digital industry on banking technology and delving deep on rapid evolving trends in multi-channel distribution. Unquestionably, all these factors integrally building and illustrating future banking trends.

Today, banks have embraced newer tech-trends that are specially designed to cater the widening needs of the business houses and organizations. They are simply following the prevailing trends of attracting and retaining customers and at the same establishing deeply rooted relationships through digital marketing and strategic advertising. Through continuous research and development, banking and financial industry have attempted to remove business barriers that enables better communication. It also fosters better staff deploying for latest, demanding and interactive technologies. Through interactive mediums banks are easily delivering the finest fiscal instruments along with the services and catering for increasing customer expectations.

Today, customers are also demanding hi-tech services that never compromise on service, quality and quantity. All they need is convenient banking services, safe online transactions, accelerated ecommerce, easy home loans, credit cards, personal loans, better payment solutions, easy foreign exchange, and other result-oriented banking solutions. Banks have also successfully catered the needs of individuals as well as business houses by streamlining their business banking processes. They have consequently improved their inherent operational efficiencies and administrative processes through minimized costs and enhanced services to customers. In fact, banks and financial institutions tend to provide tailored transaction banking solutions in order to help business processes.

Indeed, they help business houses in managing payables, receivable and other vital cash management functions. They extend their assistance in practically regulating internal organizational structures through their latest banking technology trends. Through this they can substantially reduce timing differences in payments and much more.

In a nutshell, banks are continuously evolving with the growing IT and media trends. They are keenly observing and examining the convulsing structure of the payments landscape all across the globe. Banking authorities are evenly leveraging innovative technologies in order to dramatically simplify and enhance consumer experiences. They are not only embracing surfacing technological capabilities for facilitating the requirement for convenient payments, but also effort to engage global customers.

Florida Department Of Banking And Finance

The Florida Department of Banking and Finance provides Florida consumers with information and education they need to make informed financial decisions. For example, some of its important services can be listed as follows.

Consumer assistance and answers to general insurance and financial questions are available through our toll-free help line. These help lines are available through regional service offices or website. The Florida Department of Banking and Finance claims that each year, our specialists handle more than 450,000 consumer calls.
The regional services offices are located strategically throughout the state and provide consumers with access to one-on-one guidance regarding insurance and financial issues.
The Florida Department of Banking and Finance offers free community outreach programs that reach thousands of Floridians each year.
The department has also partnered with the Department of Elder Affairs to conduct a special outreach program helping seniors with their insurance concerns. This is known as SHINE, in short. The abbreviation is Serving Health Insurance Needs of Elders.
The Florida Department of Banking and Finance also offers free consumer guides. They do not take a single penny from the consumer for making the guide available to them. The consumer guide has been made available by the Department on a range of topics relevant to today’s insurance and finance markets. If you want to have that consumer guide, the best way is to order or review it online. What is more, you can also get the printout of the online consumers guide.

Coronavirus Driving People From The Stock Market

The coronavirus’ stock market impact is immense. It is spooking stock markets. The Dow Jones Industrial Average (DJIA) shed 12% or over 3000 points over five days, February 24-28, the largest 5-day drop since the Great Recession. The DJIA recorded the biggest single day drop (1191) during that week on February 27.

China is a key player in companies’ supply chain. That’s why analysts fear firms in China won’t deliver parts to companies like Apple and Walmart, which will cause these firms’ results to suffer. The fear of the unknown is causing panic. Stock markets hate uncertainty, and this virus comes with an abundance of uncertainty: When will there be a vaccine? How will countries contain it, and so on?

Coronavirus’ Stock Market Impact Could Linger

Nobody knows how long the coronavirus’ stock market impact will last. But history shows us that stock markets over-react and then continue their upward momentum. Today, the rapid proliferation of the virus increases fear, so people are over-reacting. We need to pause and not rush to the exit.

Markets recovered quickly from past viral outbreaks. Will the coronavirus’ stock market impact lead to a realized capital loss to you? The market change, per se, does nothing. You lose funds only when you sell below market price. Some firms’ results will suffer in the short-to-medium term because of insufficient inventory. Other companies will gain. Although we do not know the virus’ severity, judging from past market responses, caution is the key response.

Are you a value investor with targeted companies in your portfolio? Examine your goals and stay the course unless you see changes in the firm’s intrinsic value. Have you been speculating, looking to make a quick buck with a margin account? If so, you will have a challenge because banks will call your margin. That’s the inherent risk when you use a margin account to speculate.

If you are not a speculator but a value investor, now could be the perfect time to identify value stocks and select those at bargain prices. There will be several. Whoever you are, be cautious, reject the herd mentality, and reflect on these matters:

Stay The Course

Review or develop an investment goal and plan before you adjust your portfolio. Why have you been or do you wish to invest? Your reason will decide your investment strategy. My preferred strategy is to buy blue chip equities with a long history of increasing dividends. I hold these shares, review their fundamentals from time to time, and act when there is a permanent change.
You will find value stocks today. Market fluctuations provide a great opportunity to buy solid companies with good track records. Remember, you lose, or gain on sale only, not when markets fluctuate.
When your investments’ intrinsic value change, confirm your strategy, and sell your holdings, even at a loss; don’t time the market recovery. The market could be down for several years like the Tokyo Stock Market, which has been below its bubble heights for over two decades.
Don’t let generic asset mixes influence your asset allotment between stocks, bonds, cash, commodities. You are unique, and your mix should fit you at your life stage. Think before rushing to so-called safe-haven commodity assets such as gold that has no intrinsic value.
If you are in the retirement red zone, five to seven years to retirement, your goal must be capital preservation, so avoid the stock market.
Don’t panic: focus on your goals, plan, long-term strategy. Update these and ensure they fit your needs and your risk profile.
This, too, will pass, but God alone knows the timing.