We present a new feature in the SourceLink Blog called "Asking the Right Questions." This first entry is about asking the right questions regarding outsourcing your document and statement needs.
Bank operations departments across the country are functioning in an entirely different reality than they did even 5 years ago. Increasingly, when it comes to outsourcing any aspect of operations, the question of 'should we or shouldn't we?' is just the tip of the iceberg....
Pain points as motivators
It is not uncommon for change to be borne of need, usually of an urgent variety. Anyone who has even a cursory knowledge of bank operations knows that putting out fires often crowds out time for the planning and implementation of systems that would have prevented so many fires in the first place. But prioritization can be messy, and when considering something as sensitive and critical to a bank's success as customer communications, urgency must be tempered by diligence. So yes, pain often motivates investigation, but it must not hurry the decision at the cost of answering some fundamentally important questions. Such as...
How Much Money is This Going to Save Us?
This question gets at the heart of another primary motivator for outsourcing. Budget crunching is nothing new in bank operations and it seems to be more of a squeeze as time goes on. With increasing reliance on technology, an uncertain post office dictating postage costs, and ever-expanding compliance and regulation fees, bank operations are constantly in need of new efficiencies. The good news is that outsourcing with the right partner always saves the bank money. How much though? This is where the complexities of individual banks’ make-up dictate some exposition and number crunching. Keeping the unique characteristics of the community bank world in mind, there are still general rules of thumb when it comes to cost savings in this arena.
- If, for example, you represent a bank producing 50,000 Direct Deposit Accounts, you can reasonably expect to save approximately $40,000 in operating costs by outsourcing. This is accomplished through:
- Reduced Postage Costs
- Equipment Reductions
- Elimination of Software Maintenance Costs
- Reallocation of Staffing Resources
- Overall Gained Efficiencies
Uncovering the substantial fiscal upside of outsourcing is usually a unifying step in casting the vision for the bank. Ultimately, this serves to help in spurring internal effort towards answering the much more important questions essential for making a sound decision for the bank now, and in the future…
Please stay tuned for the next in our series on Asking the Right Questions About Outsourcing.
Ian Franklin is part of SourceLink's Document & Statement Solutions Group out of South Carolina. Ian has over 8 years of experience navigating solutions for bank operations departments. Reach out to Ian firstname.lastname@example.org