According to Broadbridge Financial Solutions, Australian firms are under heavy pressure from market changes and regulatory requirements. Banks, investment managers, and broker-dealers face increased compliance reporting requirements. To meet these challenges, these financial firms are outsourcing back office functions.
Australian financial firms are facing specific demands on data and reporting under the Stronger Super Reforms. Other legislative regulations such as Dodd-Frank, Basel III, and FATCA add up to the requirements.
With revenue and margin pressures constantly looming overhead, financial firms need to find a solution that can take out resource-intensive tasks that don't add revenue. Outsourcing back office operations enable financial firms to meet regulatory requirements and stay competitive. As a result, they can have a more sustainable business in the long run.
General Manager David Westbrook said clients begin by outsourcing parts of back office operations before moving on to bigger projects.