Regional financial institutions may not consider themselves good candidates for off-shoring some of their work, but NEBSG and SLK have partnered to develop an efficient, well controlled and Integrated Business Process Out-sourcing model that can and does work for functions with as low as five personnel typically involved in your organization.
Competitive Advantage
The efficiency ratio measures what percentage of each dollar of revenue is brought to the bottom line of the bank. Those institutions with lower or steadily improving efficiency ratios are able to substantially maintain profitability in competitive rate environments.
We have seen steady improvement in total assets per FTE at banks over the last decade, but we continue to see a flat or declining level of improvement in the efficiency ratio at many banks.
For those institutions not impacted by asset quality issues, this decline in the efficiency ratio can be attributed to a squeeze in net interest margin, declining levels of fee income and/or an inability to lower operating costs.
Certainly an inability to control the rise in operating costs can be attributed to cumbersome and resource intensive regulatory requirements associated with BSA, GLBA/Privacy, USA Patriot Act and vendor management which have all been layered on your bank over the last five years, along with the financial reporting risk management requirements of FDICIA or the Sarbanes-Oxley Act. Compliance with these requirements has added costs.
These regulatory requirements are not the only reason for rising costs, the industry is laden with dual control an segregation of duties needs which are embedded in our business processes. No matter how much automation is bought, management struggles to reduce or eliminate the need for human intervention.
How Can NEBSG Help?
Our professionals work with and have knowledge of the strategies, systems, structures, policies, procedures and risk management practices of numerous banks large and small. From this knowledgebase, our professionals benchmark your business processes and bring strategies, tactics and detailed operating methods to your attention to drive your costs down without negatively impacting customer service.
One approach that the larger banks have proven to be effective and now have
Our Services Include
Depending upon your banks’ needs or areas of human resource demands, SLK and NEBSG have the functional expertise needed:
Our experienced team of banking industry professionals work with your management team to strategize your operational needs and identify opportunities to target for business process out-sourcing.
We then review in detail your business process operational routines and workflows, mapping all the activities, determining the workloads associated with each activity and defining your business requirements and objectives for each process and major work activity.
For and further detail on NEBSG’s business process out-sourcing services, please call Tom Grottke, Jennifer Healy, Brian O’Keeffe or Amy Giguere at 860-436-6149.