Recent research indicates that 63% of banks take advantage of outsource solutions for their core accounting, and other processes. In the "good ol' days" banking solutions were simpler. Maybe not in efficiency, but in principle. In the current age, customers expect and shop for a bank who can provide instant access to their financial data in the touch, or swipe, of a finger. And they want it in real-time! I remember when the "I.T. person" in many community banks was the person most qualified to use a mouse or who had "been on the internet". It is un-thinkable, today, to consider the daunting task of managing all aspects of "information technology" without a wealth of knowledge and expertise; and that expertise kept sharp on an ongoing basis. Check out the graphic to get just a small idea of what kind of thinking goes into bank operations in the present era. And the need for these considerations is only going to increase.
So... why outsource? In real simple terms...
- expense (i.e. staffing for after-hours updates and processing, equipment, cybersecurity know-how, audits, etc.)
- so you don't have to
- so you can be the expert at "banking", not I.T.