Introduction

With increasing buyer maturity, industry-specific BPO offerings are a fast-emerging need in the BPO landscape. Financial Services BPO (FS BPO) is one of the well-established industry-specific BPO offerings. In the current economic scenario where financial services companies are reconsidering their cost base and lending portfolio, lending BPO across credit cards, consumer lending, and commercial lending is generating a lot of interest.

In this research study, we analyze the global lending BPO market. We focus on:

• The market size and potential of the global lending BPO by business segment and function
• Adoption trends measured across buyer size and geography
• Prevalence of various sourcing models
• Maturity of lending BPO sub-functions across business segments
• The lending BPO service provider landscape across business segments 

Scope and Methodology

• This report covers the global lending BPO market across credit cards, consumer lending (including mortgages), and commercial lending
• The coverage spans across third-party outsourcing and shared services/captives
• The analysis leverages the following sources of information
  • Financial information of ~6000 financial services organizations, each with an asset base of over US$1 billion
  • Executive-level interviews with leading financial services organizations with a cumulative asset base of US$3.5 trillion to understand their perspective on lending BPO market
  • Coverage across 30+ lending BPO service providers

Content

This report will assist key stakeholders (buyers, service providers, technology providers) understand the trends in the global lending BPO market. As financial services companies come out of one of the most tumultuous period, this report provides key trends in the buyer adoption across various dimensions such geography, size, business segment, and function and identifies related opportunities. It also provides insights into the various sourcing models at play and evolving service provider landscape. Some of the findings in this report, among others, are:

• The current global lending BPO market size is around US$21-23 billion across shared service/captives and third-party outsourcing. This is only ~12% of the total estimated potential opportunity of around US$190-194 billion
• Financial services organizations with assets between US$10-500 billion will represent the most attractive segment for lending BPO going forward due to relatively limited outsourcing penetration and significant scale of operations for a viable outsourcing business case
• There is a nearly 50-50 split between shared services and third-party providers in the lending BPO market
• Lending BPO service providers can be categorized into BPO-centric and utility-based players
• Utility-based service providers dominate the lending BPO market with ~90% market share of the US$11-12 billion lending BPO third-party market. However, the BPO-centric service providers are growing nearly three times faster