Business Process as a Service (BPaaS)
Transforming the banking sector with BPaaS
The tech industry has benefited from the SaaS, IaaS, and BPO models for several years, and now, banking processes are being transformed through BPM solutions. Business process as a service, or BPaaS, integrating process automation for financial services, is a process-led model that combines these services. A decade since it became commonly used, the advantages of BPaaS have opened up immense possibilities in e-governance, banking, start-ups, and other large organisations. BPaaS is an end-to-end delivery model that has proven its effectiveness in lowering costs and reducing the friction between various components of the ecosystem.
BPaaS combines aspects of artificial intelligence (AI), process intelligence, machine learning (ML), data analytics, and human expertise for seamless functioning. It makes a business more adaptable, agile, and scalable.* While almost every industry and vertical is now outsourcing its BPaaS processes, this blog discusses the benefits accrued by the BFSI sector in partnering with BPaaS providers.
Why should banks outsource with BPaaS?
In these competitive times, banks are looking at BPaaS providers to maintain an edge over their competitors. BPaaS enables financial institutions (FIs) to outsource their back-office processes since they require agile platforms to seamlessly integrate with new service partners and third-party providers.
Most banks will need to boost their cost–income ratios considerably to remain competitive in today’s digital times, leveraging business process automation in banking industry processes. Often, businesses misunderstand this aspect since they believe that it is similar to achieving their financial goals with existing processes, not recognizing the transformative power of business process automation. Instead, maintaining a competitive pace requires a substantial rethink of the wealth management and banking models and restructuring them as needed. BPaaS providers can help them achieve operational excellence along with the following advantages:
A single solution:
BPaaS provides an end-to-end solution for banks that need to reduce their organisational complexities and processes. With BPaaS, a single vendor can offer end-to-end implementation of complexities — such as contracts, agreements, process mismatches and other interdependencies - thus simplifying the processes.Risk management:
Financial organisations are increasingly wary of cyber threats that result in data leaks, business continuity loss, costs, and damage to reputation as well as exposing them to a myriad of other digital risks. Cloud-based BPaaS solutions provide banks with risk management and redundancy benefits without the need to continuously build technical expertise and upgrade systems. This can help save costs involved in hiring and training. It can also prevent cyberattacks that could cause bigger financial impacts.Reliability:
Reliability has always been a problem with the conventional back-office processing as the scale of human involvement required for exceptional processes is time-consuming and cost-intensive. BPaaS minimises this need and automates most of the processes. While that takes care of all the standardised processes, there are certain exceptions, which can be efficiently handled by experts and specialists. This will result in decline in rates of human error and the costs associated with it.Enhanced efficiency:
BPaaS is more efficient and faster than conventional solutions at meeting volume demands and processing orders. Machines execute orders between them in real time, increasing order straight-through-processing (STP) to a larger set of financial assets without compromising on diligence or accuracy. Efficiency is definitely one of the more substantial benefits of BPaaS.Flexibility and scalability:
That cloud-based service delivery models are scalable is established with ample evidence. BPaaS is built to scale hardware and software dynamically like any other cloud model, but it also affords scalability in processes for businesses. This one advantage of BPaaS makes it an exceptional choice for FIs. When banks or wealth managers are processing a particularly large volume of customers, they would need high-processing capability.
There is no sector or vertical with perpetually easy processes that do not need a seamless digital integration in today’s times. This is equally true for the BFSI sector. Handling these and other types of complexities can save massive additional costs to the company that it would otherwise accumulate.Hence, by outsourcing a bank’s back-office functions, it can maintain its competitive edge in today’s digital times while successfully participating in the data- and platform-driven economy of tomorrow.
How can Infosys BPM help?
Over the years, Infosys BPM has partnered with clients across many verticals and domains to enable hyper-productivity, operational transformation as well as agile and seamless implementation through our BPaaS solutions. With our BPaaS offerings, we provide strategic, goal-based and long-term process models delivered using our AI-first digital transformation model. Learn more about our Business Process as a Service (BPaaS) offerings.
*For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive yet modular suite of services is doing exactly that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.
