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Financial Services Sector: The Torch Bearers of the GCC’s in India
Financial Services Sector: The Torch Bearers of the GCC’s in India

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The financial services sector has been one of the frontrunners in offshoring work to India, recognizing its potential to cater to global service needs. Whether through third-party business processing units in the past or opening their own captive centers, this sector has efficiently leveraged India's skills and infrastructure, remaining a key leader in evolving and adopting this operational model.

It's no surprise that most global banks have large centers in India, shifting from transaction or process-based support to value-based services. In the ever-expanding global finance world, financial institutions are diversifying their priorities beyond traditional cost-based offshoring by creating centers of excellence and innovation hubs. Embracing compliance, fintech innovation, cloud technologies, and digital solutions, the significance of BFSI Global Capability Centers (GCCs) in India has reached new levels.

A Strategic Shift in the outlook

As the world becomes increasingly integrated with tech and data-driven growth, there is a strategic shift in how GCCs are perceived by global counterparts. Banks are adopting competing business models that orchestrate their entire value chain through a combination of offshoring and outsourcing strategies. For instance, as per a NASSCOM Report, over 30 percent of banking products are now being developed in India centers, indicating a significant shift from traditional low-end process work to high-end and complex engagements. This demonstrates not only the capability of the workforce in India but also a major shift in mindset and trust among senior leadership in respective organizations.

Given India's position as a fintech hub and a leader in the payments industry, GCCs in India are creating immense value for the BFSI sector globally through technological disruptions, including omnichannel banking, blockchain-powered financial services, and robotic process automation. These advancements enhance customer experience by enabling seamless and fast delivery of services, streamlining banking platforms, and transforming payments, lending, and trading systems.

Additionally, the rise of open banking initiatives fosters increased connectivity and collaboration between traditional banks, fintech firms, and other ecosystem players, leading to a more integrated and customer-centric financial ecosystem. It wouldn't be surprising if the idea of front office, middle office, and back office becomes a thing of the past, replaced by a tech-driven innovation and a seamless client journey within an integrated process. The same will apply to risk management and regulatory compliance.

Another area where the FS sector is a leader is in having crucial roles based in India. Global CIOs, CTOs, and platform leads sit in India. This not only empowers these centers but also strategically places them under global management.

FS GCCs in India are actively reshaping the global banking and FS sector. They have been and will continue to be leaders in showcasing to the world how a true global delivery model can provide efficiencies and a sustainable value proposition.

 


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