Our banking clients around the world are in the process of making substantial changes to their payment systems (see a few of our previous posts, such as: Use the Sunset of Base24 as an Opportunity to Innovate, Investment in Card Management Software on the Rise and At Last – Delivery Model Flexibility in Card Processing). As part of this, they are also re-evaluating their delivery models for card processing. Some banks are looking to bring portions of their card processing operations back inhouse, while others are looking to strategically outsource various aspects of their operations. We believe strategic sourcing is an important part of profitable card operations.
Here are seven things banks should consider when making sourcing decisions:
- Availability of IT resources to support in-house operations
- Desire to control IT vs. focus on core competencies
- Geographic expansion plans (and ability of in-house software or third party to support)
- Degree to which agility is important (and ability of in-house software or third party to support)
- Current and future account and transaction volume
- Degree to which skills retention is important
- Ability to leverage customer payment data for value added purposes (and ability of in-house software or third party to support).
Tomorrow I’ll post on three things banks should evaluate at the process level when making sourcing decisions.