| While today's competitive financial market | | | | can be reinvested in areas offering the |
| demands that banks respond to market needs | | | | greatest return on investment. |
| quickly and efficiently, there was a time | | | | |
| when only the largest money centers could | | | | Leverage the Internet to streamline and |
| afford to offer foreign exchange (FX) | | | | automate product, service and processing of |
| service. Technological advancement has made a | | | | transaction |
| foreign exchange product line accessible to | | | | |
| banks of all sizes. However, in today's | | | | Acquire industry expertise and expedite |
| economy, banks have to consider the | | | | market entry Enhance the ability to manage |
| feasibility of offering foreign exchange | | | | the rate spread on transaction Enhance |
| product and services. As a fee-based product | | | | account management through real-time |
| offering, foreign exchanges service can | | | | management report on the purchase and sale of |
| enhance a bank's revenue stream while meeting | | | | foreign currency and the income generated |
| a market need. Yet, the cost for creating a | | | | from each products. |
| FX processing environment can be enormous. It | | | | |
| is for this reason that foreign exchange is | | | | 10 Questions to Ask When Evaluating a Foreign |
| an area that numerous bank outsource to | | | | Exchange Online Systems: |
| correspondent bank or non-bank providers in | | | | |
| order to compete in today's financial market. | | | | - Is the system networked from the parent |
| | | | bank to branch bank? |
| Outsourcing FX product and services allows | | | | |
| bank to offer an advanced technology | | | | - Does the system provide flexibility for |
| solution, industry expertise and superior | | | | your bank to share revenues with the provider |
| customer service without the costs of back | | | | or to mark up rates and still have the |
| office investments. Art Gillis, principal of | | | | ability to remain competitive? |
| Computer Based Solutions, Inc. in Dallas, | | | | |
| Texas, reported, "About 43 percent of | | | | - Is the system integrated seamlessly with |
| America's 9,355 banks and thrifts currently | | | | your bank's other system? |
| outsources some of their operation." | | | | |
| | | | - Does the system allow your bank to retain |
| When choosing outsourcing solutions, banks | | | | controls over profit margins, processes and |
| should focus on the services that will allow | | | | account management procedure? |
| them to keep overhead cost to a minimum yet | | | | |
| enable them to focus on business development | | | | - Can the bank rebrand the system for its |
| opportunities. | | | | bank and subsidiary? |
| | | | |
| Top 10 Reasons to Outsource FX: | | | | - What capabilities are available to store, |
| | | | track, and send your customer informations? |
| Increase revenues and profits derived from | | | | |
| fee-based services Improve operational | | | | - How are investigation handled? |
| efficiencies and productivity level by | | | | |
| automating administrative tasks | | | | - What is the security feature? |
| | | | |
| Deliver values to customers to enhance | | | | - Can your bank create a centralized or |
| business relationships Expand services line | | | | decentralized process for managing its |
| to capture more business from existing | | | | foreign exchange transaction? |
| customers | | | | |
| | | | - Does the systems enable your bank to |
| Achieve more competitive exchange rate | | | | provide customer real-time market |
| through wholesale purchasing Control cost. If | | | | informations? |
| cash is not tied up in capital expenses, it | | | | |