has created the current banking and financial crisis is a perfect opportunity for community banks, and trust companies and similar organizations to re-evaluate the way they provide endowment and wealth management services . Gone are the days turned a blind eye to the Board of Directors for the poor performance of the trust departments. In a new era of increased oversight and accountability, and the bank regulators and senior management will be more vigilant than ever about making sure that the trust departments are well-managed and profitable.
Despite the high cost, low-margin profile, providing a wealth of relevant management services and trust is essential for most banks due to the resumption of relations. If there is a choice, for example, the majority of bank customers prefer that all of their banking needs to be handled by one bank instead of a checking account, mortgage and business loans with one bank and trust and other financial assets managed by another started.
banks one way, and trust companies and similar organizations can maximize the value of the relationship of trust to provide services and wealth management, and the rationalization of expenditure is by various outsourcing strategically to provide those services components. Depending on the size of the circle and the complexity of the services provided, it is not uncommon to reduce basic services to provide trust and wealth management related by 50%, or more costs, through a trust management outsourcing strategic foreign operations.
increase the results of control of the strategic business
and there is a fear of "losing control" is one of the most commonly used arguments against outsourcing by bank trust departments managers. However, results of a survey conducted by Accenture revealed that a staggering 86% of those surveyed concluded that outsourcing gave their organization "... more control over the strategic business results in a variety of critical areas, such as shareholder value and revenue," do not Less.
cost savings can promote growth efforts
Not surprisingly, the study found also that Accenture "... 73% of the companies that re-distribution of costs and benefits of outsourcing Foreign either the bottom line or growth efforts. "not all the cost savings must necessarily go to a minimum. In some cases, it may be wise to invest some or all of these savings in new business development and the positions of the front and which have a greater impact on the management of the trust's ability to attract and retain high for customers from the owners of wealth.
and more strategic focus on strong building business model and brand
survey Accenture's results also showed that 55% of executives surveyed outsourcing. " .. the effective implementation of ideas and strategies, and the change allows faster and more controlled. " Strategically outsourcing trust department management and operations will allow the trust department managers to take a more holistic approach to managing their business models, which leads to more overall success for the management of the trust and the bank. It is also a great way to department managers the confidence to slide out from under the heavy burdens of intervention in the daily work of the administrative details to become an inspiring leader who is extremely important to the success of this work.
Summary and Conclusion
The benefits of outsourcing and partnership strategy designed the sources of well-designed departments trust bank and similar organizations documented wealth management well documented and can not be underestimated. In addition to realizing the benefits of reducing public expenditure, outsourcing trust management outsourcing operations and provides trust department managers a chance to study the methods and business practices that can reveal at the same time great opportunities to enhance revenues.
should really also includes a partnership outsourcing strategy Service Level Agreement which ensures the department managers the confidence that they will get high-level services on a common economic basis of interests instead of relying on relationships with customers / traditional seller.
credit departments continued to bank credit and similar organizations should not be content with an outsourcing relationship based on cost savings alone. To be most effective, it must be based on a strategic partnership that includes a much wider range of general business objectives and goals analysis, accompanied by a written practice which sets standards and charts a course for success management program.
next articles will explore the benefits and structure of the agreement valid service level and to identify the advantages of the founding of the practice, which focuses on the goals, objectives and accountability management program.
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