While the demands of today's competitive financial market that banks respond to market needs quickly and efficiently, there was a time when only the largest financial center is able to offer an exchange (FX) foreign service. Advances in technology have made the foreign exchange product line can be accessed by banks of all sizes. However, in today's economy, banks should consider the feasibility of offering products and services of foreign exchange. As a fee-based product offerings, foreign exchange services can increase revenue streams in a bank while meeting the needs of the market.
However, the cost of creating FX processing environment can be very large. It is for this reason that foreign exchange is a place with many banks to outsource correspondent banks or non-bank providers to compete on FX market.Outsourcing financial products and services currently enable the Bank to offer advanced technology solutions, industry expertise and superior customer service back office without the investment costs. Art Gillis, principal-Based Computer Solutions, Inc. in Dallas, Texas, reports, "Approximately 43 percent of 9355 U.S. banks and Thrifts currently outsource some of their operations." When choosing a outsourcing solutions, banks should focus on services that will allow them to maintaining minimum overhead yet allow them to focus on business development opportunities.
Top 10 Reasons to Outsource FX: Increase revenues and profits derived fee-based services Improve operational efficiency and levels of productivity by automating administrative tasksDeliver value to customers to boost business ties Extending service lines to capture more business from existing values customersAchieve a more competitive exchange by buying wholesale cost controls. If money is not tied up in the cost of capital can be reinvested in areas that offer the greatest return on investment.Leverage Internet to streamline and automate the product, service and processing industry expertise and accelerate the market entry transactionAcquire Improve the ability to manage the deployment of the transaction level Improve account management through real-time management reports the purchase and sale of foreign currency and the revenue generated from each products.10 Questions to Ask
When Evaluating Online Foreign Exchange System: Network system is the parent bank to bank branch? Does the system provide flexibility for your bank to share the profits with the provider or mark up the price and still have the ability to remain competitive? The system is seamlessly integrated with other systems of your bank? Does the system allow your bank to maintain control over profit margins, account management processes and procedures? Can rebrand the system for banks and bank subsidiaries? What capabilities are available to store, track, and send your information to the customer? How investigations are handling? Is the security features? Can your bank to make the process of centralization or decentralization to manage foreign exchange transaction? Does the system allow the bank to provide customers with real-time market information?