Retail Banking BPO – State of the Market with PEAK Matrix™ Assessment 2016: Analytics and Innovation at the Forefront in Challenging Times

19 Dec 2016
by Manu Aggarwal, Robin Jain

The market for third-party BPO in retail banking reached US$0.9 billion in 2015, and is expected to continue to grow at 4-7%. North America and United Kingdom continue to drive demand in this space. Asia Pacific also generates significant demand for retail banking BPO solutions. Changing consumer behavior, increased competition (especially from FinTechs), the growing importance of analytics, and regulatory changes are some of the factors shaping retail banks and, consequently, the outsourcing relationships of retail banking players. In this study we analyzed the performance of the global retail banking BPO space in 2015. We focused on:

  • State of the market
  • Market trends and solution characteristics across size and scope, Line of Business (LoB) adoption, regulatory reporting, technology model, and global sourcing
  • Service provider landscape, which covers service providers’ market share and presence across various geographies
  • Future outlook, which discusses the issues retail banks are likely to face in the future and possible solutions
  • Service provider profile compendium, which profiles major retail banking BPO players

Scope of analysis

  • Third-party retail banking BPO contracts; it does not include shared services or Global In-house Centers (GICs)
  • Over 160 active retail banking BPO contracts signed as of December 2015
  • Coverage across 19 retail banking BPO service providers: Accenture, Avaloq, Capgemini, Concentrix, EXL, Genpact, HCL, HP, Infosys, Mphasis, NIIT, Polaris, Intelenet, Sutherland Global Services, TCS, Tech Mahindra, Wipro, WNS, and Xchanging

This report assists key stakeholders (buyers, service providers, and technology providers) in understanding the changing dynamics of the retail BPO space and helps them identify the recent trends and future outlook. In this backdrop, the report provides comprehensive coverage of the global retail banking BPO space including detailed analysis of the state of the market, market trends and solution characteristics service provider landscape, and future outlook. It also includes a service provider profile compendium.

Some of the findings in this report are:

  • The tightening regulatory environment has driven up the inclusion of regulatory support in retail banking BPO contracts
  • While North America and United Kingdom drive most of the revenue, Asia Pacific is increasingly becoming significant and accounts for more than one-fifth of the demand `
  • Transaction processing and account servicing processes constitute almost half of the retail banking BPO
  • Small banks require higher technology support from the service providers to up their game, thus, resulting in them leveraging platform solutions more
  • A single service provider accounted for over 50% growth of the retail banking BPO market by revenue
  • Advanced analytics capabilities will continue to increase in importance for both banks and service providers

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.


Banking, Financial Services & Insurance (BFSI) - Business Process Outsourcing (BPO)


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