Flying at the speed of business is imperative for staying ahead of the competition. The problems that businesses face are becoming more intricate as they evolve while the knowledge pool that they need to pull from internally, is shrinking. Instead of using a transactional mindset to outsource sections of an operational process, companies are now looking to develop long term relationships. Looking into outside resources has transitioned from merely a cost-saving measure to a means of leveraging the knowledge of outside firms.

The factors leading companies to investigate this new way of operating are diverse. They range from the overarching macroeconomic landscape, which continues to be volatile and unpredictable. Regulatory changes are constantly shifting, intensifying capital requirements to stay in the green. Technology is innovating at a pace that makes it hard to stay up to date. Costs continue to rise. The number of manual controls for a system grows every day. Top it all off with a scarcity of top tier talent, and it becomes even more challenging to stay ahead.

Digital banking advantages

So, when is it advantageous for a company to look to a managed services partner? There are four criteria that have been shown to provide the greatest advantage for digital banking managed services.

  1. When there is a significant risk, and failure would greatly damage your enterprise. Failing to identify weaknesses or process gaps early on can cripple a company for the long term.
  2. There is little differentiation advantage obtained from the process. Generic processes won’t influence customer buying decisions. The only possible influence is a negative perception as you fail to provide solid service.
  3. There is a need for highly technical experts. Internal controls demand expert knowledge, but this talent is costly and hard to find.
  4. A high velocity of change is involved. When sweeping changes happen constantly it can be hard to justify an investment in a process that will quickly become outdated.

Managed Services and Nearshoring to the rescue

It still holds true that cost is a major driving factor in going with managed resources. Increased cost efficiencies drive decisions as managed partners provide you with:

  • Predictable pricing across all models
  • Lower exposure to financial risk
  • Flexible pricing can be based on outcomes.
  • Lower fees on a fixed headcount basis.
  • Lower third-party fees as you develop stronger relationships.

Bandwidth allows us to work remotely from one another, but when it comes to collaboration, being in the same time zone is still an advantage. Business hours that perfectly overlap leaves more wiggle room to meet up. When your partners are online at the same time as you, they will have more opportunities to interact with you. You end up with a faster turnaround time as multiple issues can be addressed throughout the day instead of working around odd intervals.

Not being restricted to a single location expands your skill pool. Highly specialized professionals can be spread out across a region. This means that your projects have access to the best team for the job without getting into bidding wars with competitors over local resources. Their deep industry and sector insight improve the quality of the solutions they provide. They maintain cutting-edge platforms and methodologies that would be prohibitively expensive to develop in house.

Working with these highly skilled professionals allows you to stay ahead of the curve by building effective testing of your projects. They can set up comprehensive tests that run automatically, reducing the turnaround time of the project and increasing the quality of the results. This turns into lower development costs, a faster release of new products and services, and lower risk. You will serve your customers faster, more efficiently, and more securely.

Domestic professionals also have deeper insights into the requirements of local financial services industry needs. They are aware of the requirements that you have for policy and security. A well-managed partner will share the risk with you and take on the responsibility of adhering to government policies, saving you headaches in the long term. Their advisory expertise is invaluable, providing continuous solutions to complex business banking problems. They have the incentive and the resources to improve with each iteration to relentlessly focus on innovating processes.

Having split-site resources at your disposal allows you to augment your staff more fluidly to pursue growth opportunities as they come to you. Your management partners are equipped to scale with you. You are more able and prepared, to execute more complex tasks in the long term. You have the agility to take advantage of flexible service models and scalable infrastructure, responding to change more quickly.

Written by Paul Morris, North America Sales Manager at CPQi. To hear more about managed services for digital banking in the Americas, please feel free to reach out to Paul at, he’d love to have a chat and show you what we at do at CPQi.