Introduction

The global banking BPO market has been growing at 8-10% with significant variations seen across the years, driven by macroeconomic environment, regulatory compliance initiatives, and other factors. New contract signings is the major driver for BPO adoption, while renewals continue to remain strong as buyers prefer to continue with their existing vendors. However, increased digital adoption and maturity of automation solutions is leading to lower FTE requirements for the industry. This has prompted service providers to look for other avenues of growth.

In this study we analyze the global banking BPO market in 2014. We focus on:

• Market size and buyer adoption
• Banking BPO solution characteristics across LoB adoption, technology model, automation leverage, pricing structures, and global sourcing
• Banking BPO service provider landscape, covering service providers’ market share and presence in various geographies

Scope of analysis

• Third-party banking BPO contracts; it does not include shared services or Global In-House centes (GICs)
• Over 400 banking BPO contracts signed as of 2014
• Coverage across 16 banking BPO service providers including Avaloq, Cognizant, EXL, Genpact, HCL, IGATE, Infosys, Mphasis, Serco, Sutherland Global Services, Syntel, TCS, Tech Mahindra, Wipro, WNS, and Xerox

Content

This report assists key stakeholders (buyers, service providers, and technology providers) in understanding the changing dynamics of the banking BPO market and helps them identify the recent trends and future outlook. In this backdrop, this report provides comprehensive coverage of the global banking BPO market including detailed analysis of market size & growth, buyer adoption trends, solution characteristics, and service provider landscape. Some of the findings in this report are:

• The market for third-party BPO in banking crossed US$3.5 billion in 2014, growing at a CAGR of 8-10% over the last four years
• Recovery in lending segment, driven by low mortgage rates, has fueled part of the growth along with increased outsourcing in the commercial banking space
• Macroeconomic environment, regulatory concerns, rise of the digital consumer, and growth in adoption of automation, analytics, and risk management services are some of the key factors influencing the market
• Among the service providers covered by Everest Group, TCS, Genpact, and Xerox continue to dominate the banking BPO market with close to two-thirds of the market share by revenue