The talent shortage in the American banking and financial services sector is very real.
And it’s not getting better anytime soon.
According to one recent report, “financial and business services are industries that will have the largest shortfall of workers by 2030.”
Within financial services, trust providers have been hit especially hard, according to Melissa Dinkel, Manager of Cheetah’s Business Process Outsourcing division (BPO).
“A lot of people in the industry are retiring, and it takes a special someone to work in trust,” Dinkel said.
But the shortage doesn’t have to undermine your operations and stifle your growth. In the face of what some have called an “existential threat,” forward-looking financial institutions aren’t just surviving, they are thriving.
The reason is that they have embraced outsourcing as a growth strategy.
Cheetah’s Business Process Outsourcing division provides full-service back-office operations to trust departments who also use the Cheetah trust accounting and wealth management platform. Outsourcing back-office operations to Cheetah allows trusts and trust departments to focus their time and resources on relationship-building and business development.
BPO experienced a record year in 2023, continuing a years-long trend of explosive growth in assets under care. This rapid growth reflects how well the company is addressing the urgent need for talent, Dinkel said.
“Trust operations don’t make money,” Dinkel said. “Trust administration and sales do. It makes sense to outsource this part of the business.”
8 years, 2,000 percent growth
Dinkel became manager of BPO in 2016. Since then, the number of clients BPO services has grown by more than 500 percent. Meanwhile, assets under care have grown by almost 2,000 percent.
At the same time, BPO clients have also experienced growth on their end, thanks in large part to the scalable business model that BPO delivers.
On average, BPO clients grow new accounts by 13 percent each year and grow assets under care by 18 percent each year.
According to Dinkel, BPO’s winning formula involves:
- Exceptional technology
- Expert consulting, and
- Teams-based service.
High-touch and high-volume
The exceptional technology comes from Cheetah’s own trust accounting and wealth management platform.
With so much efficiency baked into its operating system, Cheetah’s BPO division has been able to achieve two seemingly contradictory goals — providing high-touch service while also managing high-volume accounts.
“The client doesn’t have to choose between quality or quantity,” Dinkel said.
Brian Simmons, Chief Trust Officer for IconTrust in Nevada, agreed.
“Much of the efficiency comes from the fact that BPO is on Cheetah’s own system,” he said. “When something comes up, the BPO team knows exactly how to get it done.”
Consultation that matters
Another advantage Cheetah’s BPO clients have is that they work with experienced wealth management consultants. These consultants help clients streamline and standardize as many processes as possible on the bank/trust side of the relationship.
The result is a trust department that is working more efficiently with less risk, while improving the level of service they provide to their own clients.
A better client experience
The final differentiator is Cheetah’s unique teams-based approach.
Every client is assigned to a small, cross functional team of experienced and talented operations professionals. Each teammate understands a client’s processes from beginning to end.
“We don’t have a trade desk and an income desk and a check-processing desk,” Dinkel said. “When you operate that way, there’s too much risk of something falling between the cracks. Our teams handle everything from A to Z. It’s a much better client experience because they don’t get bounced around.”
Edith Morales, AVP of Wealth Management at WestStar Bank, said the high level of service and personal relationships are what she appreciates the most.
“Our BPO team is knowledgeable, responsive, and helpful,” she said. “They keep our daily processes running smoothly.”
Request a consultation
Are you interested in outsourcing your trust operations?
Whether or not you are already a Cheetah client, we are happy to answer your questions and get you the information you need to find success with outsourcing.
