10 CRITICAL FACTIORS TO EXPLORE WHEN CHOOSING AN OFFSHORE OUTSOURCING PROVIDER FOR FOREIGN EXCHANGE
Author: Chetan Sojitra
www.tatvasoft.com" title="Software Outsourcing Company India" style="text-decoration:none;color:#000000" target="_blank" >OUTSOURCING FX is No New Trend for Bank:
While today's competitive financial market demand that banks respond
to market needs quickly and efficiently, there was a time when only the largest money centers could afford to offer foreign exchange (FX) service. Technological advancement has made a foreign exchange product line accessible to bank of all sizes. However, in today's economy, bank has to consider the feasibility of offering foreign exchange product and services. As a fee-based product offering,
foreign exchanges service can enhance a bank's revenue stream while meeting a market need. Yet, the cost for creating a FX processing environment can be enormous. It is for this reason that foreign exchange is an area that numerous bank outsource to correspondent bank or non-bank providers in order to compete in today's financial market. Outsourcing FX product and services allows bank to offer an advanced technology solution, industry expertise and superior customer service without the costs of back office investments. Art Gillis, principal of Computer Based Solutions, Inc. in Dallas, Texas, reported that "About 43 percent of America's 9,355 banks and thrifts currently outsourcers some of their operation."
Ten questions to be asked before evaluating the Foreign Exchange Online Systems.
1. Is the system networked from the parent bank to branch bank?
2. Does the system provide flexibility for your bank to share revenues with the provider or to mark up rates and still (
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