Back-office outsourcing to the Philippines has become a hidden gem for fintech companies looking to increase efficiencies, enhance customer experience (CX), quickly scale, and reduce costs. The Philippines is a global leader in providing business process outsourcing (BPO) services, including back-office outsourcing, due to its highly educated, skilled, and English-proficient workforce.
Fintech providers are outsourcing a variety of back-office functions to the Philippines to increase operational efficiencies, support growth, and reduce costs. These functions include tasks like data entry, data analytics, and accounting, among others. Additionally, disputes and chargeback management, fraud detection and mitigation, and regulatory compliance management are of high interest to fintech companies. Manual verification is also being outsourced. It is a process of validating the authenticity of customer information to prevent fraud.
The Philippine BPO industry is known for its high-quality service, which includes efficient and accurate data processing, quick response times, and highly skilled professionals. By outsourcing back-office functions, fintech firms can free up resources and focus on their core competencies, such as product development and marketing.
However, back-office outsourcing in the Philippines is not just about cost savings and improving operational efficiencies. It is also about enhancing customer experience (CX) in the back office. CX is critical for fintech companies as it directly impacts customer retention and acquisition. A positive CX can also lead to increased revenue and reduced costs. By outsourcing back-office functions to the Philippines, companies can improve their CX by providing efficient and accurate support, quick response times, and highly skilled professionals.
One fintech company that has outsourced functions to the Philippines is Revolut. This UK-based fintech startup has been able to increase operational efficiencies and reduce costs by outsourcing its non-core business processes to the Philippines.
According to a report by Bain & Co, the Philippines is a leading destination for back-office outsourcing, including fintech. The report states that the nation’s English-speaking workforce, along with its cost-competitiveness and high-quality service, make it an attractive destination for fintech companies looking to delegate back-office functions. The report also states that the country is expected to continue to play a dominant role in the BPO industry in the future, as the country continues to invest in the development of its people, technologies, and infrastructure.
Back-office outsourcing to the Philippines has become a hidden gem for fintech companies looking to increase efficiencies, quickly scale support programs, enhance CX, and lower costs. It is revolutionizing the way these companies handle essential but non-core business processes.
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