Why should a housing finance company outsource its back-office operations?

The momentum in housing demand across India’s top six cities1 is expected to continue this fiscal and grow 5-10% despite rising property prices, interest rates and a high-base effect. The leverage and credit profiles of real estate developers, which had strengthened on the back of recovery in fiscal 2022, should sustain over the medium term. Housing demand is directly proportionate to people’s income and house affordability. Government measures for affordable housing, such as PMAY interest subsidies, increase demand for housing financing. Furthermore, lifestyle changes and increasing labour mobility have raised the demand for separate nuclear houses, particularly among young people. Young borrowers seeking house loans typically want separate homes in metropolitan areas, which is moving the housing finance sector forward. However, the ups and downs of real estate have been harsh for home finance companies, keeping them on their toes. Due to this, many home finance companies seek innovative ways to suit the market’s erratic demand. Outsourcing is one such solution.

Outsourcing the back-office processes of a home finance company can help them save time and money. Business Process Outsourcing (BPO) is an effective way to reduce operational costs and increase efficiency. Back Office outsourcing companies have the expertise to manage all kinds of back-office processes such as loan processing, customer service, accounts payable/receivable, Collections,, etc. With BPO services, companies can get access to the latest technology and best practices in the industry without having to invest in expensive infrastructure and investing in building the required operations. This allows them to focus on their core business activities while reducing costs at the same time. Additionally, BPOs provide access to specialized skill sets that may not be available in-house. This allows companies to focus on their core competencies while still ensuring that their back-office operations are running smoothly.

Benefits of using BPO for outsourcing the back-office process

• Cost efficiency: Back office outsourcing can save the company money by reducing the need for expensive in-house resources and infrastructure.
• Access to specialized expertise: Outsourcing to a specialized provider can give a company access to a wider range of technical expertise and experience than it would be able to maintain in-house.
• Scalability: Outsourcing the back-office process allows a company to scale its operations up or down as needed, without having to make significant investments in new technology or personnel.
• Focus on core business: By outsourcing the back-office process, a home finance company can focus on its core business of providing home finance services to customers, rather than on managing back office operations.
• Flexibility: Outsourcing the back-office process allows a company to easily adapt to changing business requirements, such as new regulations or market conditions.
• Compliance and Quality Control: By outsourcing the back-office process, the home finance company can ensure compliance with regulations and standards and maintain a high level of quality control.
• Efficiency: Outsourcing back-office processes can help to streamline operations, automate the processes and increase efficiency, resulting in cost savings and increased productivity.

Overall, outsourcing the back-office process can provide a home finance company with many benefits, including cost efficiency, access to specialized expertise, scalability, focus on core business, flexibility, compliance, quality control and efficiency.

Why KServe?

KServe is a leading call center/BPO service provider in Mumbai, India with over 20+ years of experience in managing projects for clients across Housing Finance and other  different industries such as BFSI, Fintech, NBFC, Ecommerce, HealthTech, EdTech, Automobile etc. As a BPO service provider, we are committed to deliver tangible results which are in sync with your business goals. KServe, leading BPM provider is compliant with industry best practices for Data Management and Information Security. Being a business process outsourcing service provider, KServe has a skilled team of 800+ call center executives which works round the clock to ensure best services to be provided to its clients.  . We are one of top 10 telemarketing companies in India which has ability to scale up quickly and retain experienced staff at the agent as well as the critical middle management level. KServe, a telecalling service provider, provides great Multi-lingual call center assistance that carters to various regional languages, thus, eliminating the requirement for the client to recruit a specialist regional staff for the same.