Why Should You Consider Outsourcing Your Processing?

For some, outsourcing is a easy, cost efficient choice (read American Banker) , however for others outsourcing item or data processing is a foreign concept and learning process.  Over the years of working with community banks, we have heard dozens of reasons why banks decide to outsource.  Here are some of the most frequent responses:

• Cost savings and predictable monthly expenses 

We achieve significantly better per item and per account costs. In the past, we did not realize our true costs or know all the hidden costs.

• Check volumes declining

Why should we invest in new hardware and software in a shrinking market with numerous technology changes?

• Locating and retaining trained staff is increasing difficult 

Newer technologies require greater technical understanding and administration and competent resources are scarce and expensive. At our size, we simply cannot afford to constantly train.

• Improve focus on core business

We want to concentrate on increasing customers, deposits and our asset size.

• Achieve advantageous economies of scale

Outsourcing offers us comprehensive and flexible services as well as 24x7 efficiencies.

• Eliminate internal processing problems

By outsourcing, we vastly minimize our operational headaches and are allow to be more productive.

• Scalability

As we grow,  our bank can quickly and easily add customers without delays or unknown costs, in fact, we could not have successfully acquired other bank branches and accommodated our growth without outsourcing services.

• Improved disaster recovery 

For disaster recovery, we need offsite storage and Branch21 is an obvious solution since they already handle our item and data processing and provide multiple sites and a proven solution. 

• Investment into latest technology & services of large banks

Branch21 has extensively researched and invested in the latest, best of breed technology and based on volume size, Branch21 operates on the scale of a multi-billion dollar bank. We leverage their technology prowess, experience, size and service.

• Future direction

For a bank our size, we unanimously agree with industry experts that advocate outsourcing as a way of the future.  In the final analysis, we think it's the obvious choice.