Advantages of Tasking External Parties with Product Handling Duties
In the ever-evolving landscape of financial services, Fiserv is making significant strides in ensuring continuity, security, and efficiency.
Fiserv's deposit solutions operations are geographically dispersed, ensuring uninterrupted service during remote work. This strategic approach is further bolstered by the company's production and data recovery sites, which are hundreds of miles apart in the U.S., based in strategic locations.
The outsourcing of financial services is on the rise, with a projected annual growth rate of around 8-9%. Financial institutions that outsource item processing and other financial operations can reap numerous benefits.
One of the key advantages is enhanced cybersecurity. Outsourcing providers often utilise advanced cloud-based platforms with tight security protocols, offering a more secure environment for sensitive financial data compared to potentially fragmented in-house systems.
Outsourcing also helps address talent shortages. By relying on specialized external teams, financial institutions can reduce pressures on internal employees and mitigate turnover risks in critical financial functions.
Disaster recovery is another area where outsourcing proves beneficial. External providers typically deploy robust, scalable infrastructure with automated backups and disaster recovery plans, enabling faster recovery and continuity of financial operations in the event of crises or disruptions.
Additional benefits include improved access to real-time financial data, enabling faster and more strategic decision-making, and more agile financial reporting systems that support growth and operational complexity.
During the COVID-19 pandemic, Fiserv demonstrated its resilience, not missing any posting deadlines for clients. The company's pandemic preparedness plan was thoroughly exercised and proven effective.
Fiserv also aims to help financial institutions manage time-consuming and manual functions related to check processing until there is no longer a need for them. Check processing remains a vital function for banks, requiring 24/7 availability.
Outsourcing item processing can also be a strategic move during pandemics or natural disasters, as it allows financial institutions to work with vendors that are well prepared for such occasions.
Moreover, outsourcing allows banks to focus on their core business and pursue innovation. By leveraging the "bench strength" of outsourcers like Fiserv, financial institutions can take advantage of the latest technology and expertise, freeing up resources for strategic initiatives.
Fiserv is also preparing the next generation to support item processing until the last check is written. The company requires its operations employees to work one day per week at home to maintain the effectiveness of a remote environment.
In an increasingly complex and rapidly evolving cyber risk environment, rapid application deployment of resolved cyber risk findings is crucial. Fiserv is committed to addressing these risks, updating its application software multiple times per year, in contrast to in-house hosted systems applications that are rarely updated.
In conclusion, the outsourced financial services sector is growing rapidly, driven by demand for specialized skills, advanced technology, and efficiency. By leveraging outsourced expertise for item processing and other financial tasks, financial institutions can enhance their cybersecurity, better handle staffing challenges, and strengthen their disaster recovery capabilities.
- In the rapidly growing outsourced financial services sector, Fiserv's services, including item processing, demonstrate a strategic advantage for financial institutions by providing advanced technology, enhanced cybersecurity, and improved disaster recovery capabilities.
- Fiserv's commitment to technology, evident in its frequent application software updates, positions the company well to address the challenges of an increasingly complex cyber risk environment, while also achieving efficiency gains for its clients.
