As outsourced account processing continues to grow in popularity, top leaders at organizations like Carrollton Bank are turning to outsourcing and passing along the benefits to their customers. Thanks to this strategy, the Illinois bank has been able to make big changes with a small operations staff.
"Many financial institutions, including Carrollton Bank, find outsourcing helps limit the time, money and effort it takes to manage technology," said Teri Carstensen, president, Bank Solutions, Fiserv. "That enables financial institutions to turn their focus to what they do best – serve customers and build relationships."
Carrollton Bank was similarly focused on the customer experience. After processing in-house for many years, Carrollton Bank was implementing one or two new products each year. As part of its strategic vision, the bank and its lean operations staff knew faster delivery of new service offerings would positively impact its customers.
The bank's leadership team turned to outsourcing to make big changes, including bringing new products to market faster, without adding personnel. Without this strategy, they estimated they'd need to double operations personnel to support day-to-day functions – not to mention keeping up with mounting technology changes, regulatory updates and security concerns. Within two years of transitioning to outsourcing, Carrollton Bank had implemented 20 new products and now averages eight product implementations a year.
In the seven years since the bank moved to outsourcing and began expanding its offerings, it has grown from a $700 million bank to a $1.3 billion bank and added two branches to handle increased customer volume. Stosha Flowers, vice president, Information Technology for Carrollton Bank, feels this amount of growth would not have happened if the bank had stayed with in-house processing.
The bank retained all of its employees in the transition to outsourcing. Now, its former operations staff focus on helping customers and making strategic decisions rather than maintaining programs from a checklist. By handing off back-office functions to an experienced outsourcing team, Carrollton Bank has placed more attention on delivering the satisfying experience its customers demand.