Trust Operations Outsourcing – A Progressive Tactic in Your Strategic Arsenal

Trust operations outsourcing is a very effective tactical strategy to provide relief and cost savings from your company’s back office Trust operations. You retain control of the customer relationship and on-site Trust professionals. The vendor will in turn handle all of the back-office operations and compliance.

Trust operations outsourcing removes much of the operational responsibilities from the individual bank or trust company, and places them with an experienced operations outsourcing firm. The operations outsourcer has several key advantages, which include:

• Scale in handling a greater number of transactions and assets at a lower marginal cost.

• Experienced trust operations personnel and management.

• Better ability to recruit and train operations personnel.

• More experienced IT support for the trust system.

A dynamic and quickly shifting environment calls for flexibility in a provider. This is especially important given the longevity of typical outsourcing contracts (often ranging from three to seven years). While critical, agility is only one of the key criteria by which to gauge potential provider candidates. Trust firms should also look for flexible and scalable servicing platforms, proven servicing relationships built entirely around clients’ operational needs, long-term financial strength and a history of compliance integrity. Thus, finding the right match is a matter of careful self-assessment: A firm must understand its core value proposition and how it expects to benefit from outsourcing before it goes through the vetting process of choosing a provider.

While every company’s needs are different, the process of Trust outsourcing has many common elements. The functions typically include...

• Client level (the Bank / Trust department) – Supporting services for Internal Administration, Management Reporting and Time Registration

• Customer level (the clients of the Bank / Trust department) – Supporting services for Compliance, Government Filing, Accounting & Tax, Legal Services and Invoicing & Collection

The benefits of such an initiative are considerable. Recent studies have clearly shown that, depending on the size of the department and complexity of the services provided, it is not unusual to reduce the core costs of providing Trust and related Wealth Management services by 50% or more, by strategically outsourcing Trust Administration and operations.

In addition to the significant overhead reduction, outsourcing Trust Administration and Operations offers Trust department managers an opportunity to examine business practices and methods that could simultaneously reveal significant revenue enhancement opportunities.

For more information about our services please contact:
Hanno de Vriend
BPO Director
H.deVriend@amicorp.com

Fernando Cancino
BPO Sales Executive
F.Cancino@amicorp.com