How does customer service outsourcing help in the BFSI industry?
Customer service outsourcing is a strategic way for organisations to provide better service and improve the customer experience (CX), boost operational efficiency, reduce costs and gain a competitive advantage in the sector. In the Banking, Financial Services and Insurance (BFSI) industry too, outsourcing enables organisations to take advantage of the expertise and experience of third parties to enhance customer service and other services. By doing that, they can also focus on fortifying their core business.
Among all the technologies being used in customer service today, artificial intelligence (AI) driven tools and insights have the highest capacity to enable the achievement of all business outcomes. In fact, industry reports estimate that the global call centre AI market will reach $4.1 billion by 2027, displaying a CAGR growth of 21.3 per cent from its valuation in 2022. The growth of the call centre AI market is largely because of the increased use of social media platforms and because of the availability of large quantities of data. Customer service is no longer limited to phone calls and emails, it has evolved to include AI-powered chatbots and intelligent virtual assistants (IVAs).
Benefits of outsourcing customer services
- Better resources, expertise and AI-driven insights: With the emergence of new technologies, new apps, new products and new communication channels, the sophistication of bank frauds has increased too. It is almost impossible for in-house employees to tackle incidents of fraud along with managing the challenges of their core operations. In such cases, it is best if the customer support services are outsourced to entities that have the manpower and the expertise to manage such situations. Further, given the ease of using digital service on various devices and the fact that a large percentage of customers are very well informed about developments, it is best if their queries and problems are managed by dedicated customer service teams.
The use of AI has made it possible for customer service personnel to have historic data at their fingertips and that offers them meaningful upselling and cross-selling opportunities. Historic data can help organisations stay prepared for call volume fluctuations, and potential customer churn, both of which allow organisations to take corrective action before problems escalate and customers leave.
- Better time and cost management: Modern banking customers expect seamless and personalised experiences across various channels such as email, phone, chat and social media. An industry research report noted that 73 per cent of the customers surveyed wanted financial organisations to consider timely service to be the most valuable criterion of effective customer service. Any organisation that resolves customer issues on time, is valued by the customer. By outsourcing customer service functions to providers who use advanced technologies such as voice recognition and natural language processing techniques to solve problems, customer support costs can be reduced and response times can be improved.
- Easier lead generation: BFSI players need to increase their customer base through various channels. Lead generation through outbound calling services is an integral part of reaching new and existing customers and informing them about new or improved services. Outsourcing partners have well-trained teams to manage such calls and handle customers. They would know how to ensure the right prospects are contacted at the right time with the right information. Further, providing the right information at the right time is sure to boost customer loyalty.
- Gain a competitive edge: A positive customer experience has become a key attribute for success. A large percentage of customers are willing to pay more for better service and by using a quality customer support provider, BFSI players can gain a competitive edge over their rivals.
- Keep customers better informed: Outbound calls to a new generation of customers can help banks keep customers informed about products or services. Fake news and hoaxes, so rampant today, can be controlled by a direct connection between customers and service providers. Such calls help new customers find their way around and become acquainted with bank products and services.
- Robust technical support: A number of BFSI players have been obliged to move into the digital realm because of circumstances over the last few years. Such players need a robust technical service team to ensure that customers from different backgrounds can navigate digital services with ease. Complicated navigation and terminology can frighten away even old customers who are not comfortable with online services.
- Track debt collection: A rather unpleasant part of the BFSI industry, but one that must be carried out, involves customer service personnel being delegated the task of calling customers who owe the bank money. The consequences of not paying have to be spelled out too. This task is frequently outsourced to third parties who have the time and resources to ensure the task is completed.
Given the many advantages of outsourcing customer service, the BFSI industry is likely to look for more and more advanced service providers. The global BFSI BPO services market is expected to reach $174.94 billion by 2028, having grown at a CAGR of 9.7 per cent from 2021. Out of all the services, customer services have been dominating the BFSI BPO services market. The trend is expected to continue. The increasing leads and enquiries throughout the customer lending cycle is the key trigger for this growth.
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