Solving Financial Services Challenges with Offshoring Expertise
Solving Financial Services Challenges with Offshoring Expertise – Australia’s financial services sector is under pressure. From rising operational costs and growing compliance demands to talent shortages and the urgent need to adopt digital technologies, these challenges are impacting banks, wealth managers, insurers, and fintech companies across the country.
To remain competitive and future-ready, financial firms are rethinking how they build their teams. Strategic offshoring to the Philippines is becoming a key part of the solution. This approach offers more than just cost savings. It enables agility, access to talent, and operational resilience.
Talent Shortages and Skill Gaps
Across the financial services industry, local hiring has become increasingly difficult. Roles such as junior analysts, mortgage processors, and compliance officers are in short supply.
According to PwC’s Future of Work Survey 2023, 83 percent of Australian CEOs in financial services cite talent acquisition and retention as top concerns. Source: PwC Australia, Future of Work Survey 2023. This shortage affects service quality, increases workload pressure, and slows down business growth.
Rising Operational Costs
Operating costs in Australia continue to climb. Firms are paying significantly more to retain skilled professionals, while also managing high overheads such as office space, employee benefits, and compliance administration.
According to the ABS, wage growth in the financial services sector has outpaced inflation, with salaries for finance professionals increasing by over 4 percent annually in recent years. Source: Australian Bureau of Statistics, Wage Price Index 2024. These pressures reduce margins and limit the ability to invest in innovation or expansion.
Regulatory Complexity
Financial institutions must operate under the strict oversight of regulators like the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). Meeting these obligations requires dedicated teams and robust internal controls.
Compliance costs in banking have risen by more than 30 percent over the past decade, according to Deloitte. Source: Deloitte Access Economics, Compliance and Risk Management in Financial Services (2023). Smaller and mid-sized firms often find it difficult to maintain compliance while keeping costs in check and pursuing growth.
The Push for Digital Transformation
Digital capability is now a baseline expectation in financial services. From automation to data analytics and customer-facing technology, institutions need skilled professionals to deliver transformation projects. However, the Tech Council of Australia reports that demand for tech workers continues to outstrip supply, with financial services being one of the hardest-hit industries. Offshoring to the Philippines is not just about cost reduction. It is a way to build a stronger, more responsive business model that supports growth, compliance, and customer satisfaction.
Access to Skilled Financial Talent
The Philippines produces over 75,000 business and finance graduates annually and has a high English proficiency ranking in Asia, according to the EF English Proficiency Index. Professionals are trained to meet international standards and are well-versed in Australian business culture.
Common roles filled for Australian financial services firms include:
- Junior Financial Analysts
- Accounts Payable and Receivable Specialists
- Compliance Support Officers
- Mortgage Processing Teams
- Back-Office Operations Support
- Financial Customer Service Representatives
- Data Entry and Administrative Staff
- IT Support for Digital Transformation Projects
Substantial Cost Savings
Businesses that offshore to the Philippines often reduce labour costs by up to 70 percent compared to hiring locally. This figure is based on a comparison of average compensation for similar roles between Australia and the Philippines. These savings can be reinvested into core business areas such as client experience, innovation, or expansion.
Greater Scalability and Operational Resilience
Offshoring enables businesses to quickly scale operations up or down in response to demand. Time zone differences also support 24-hour operations, improving turnaround time and customer responsiveness. This flexibility allows firms to stay competitive without overcommitting to fixed overhead costs.
Strong Data Security and Compliance Standards
Vault Outsourcing operates in alignment with ISO 27001 and implements security protocols that support Australian privacy and financial regulations. Offshore teams are trained in APRA and ASIC-related compliance standards, and infrastructure is built to support secure access, audit trails, and multi-level controls.
Increased Focus on Strategic Priorities
By offloading non-core and repetitive tasks, your onshore team can concentrate on higher-value initiatives such as strategic planning, product innovation, and client relationship management. This allows the business to grow more effectively and sustainably. Vault Outsourcing specialises in supporting Australian financial services firms with tailored offshoring solutions.
Our clients benefit from:
- A deep understanding of banking, insurance, wealth, and fintech operations
- Custom-built offshore teams aligned with your business goals
- Dedicated support from initial consultation through to long-term performance management
Our process includes:
- Initial discovery and needs assessment
- Role mapping and talent sourcing
- Seamless onboarding and systems integration
- Ongoing performance oversight and optimisation
Mortgage Processing Support for a Growing Broker
A mid-sized mortgage brokerage in Australia was expanding quickly, driven by strong referral networks and rising demand. However, the company was struggling to keep up with loan application volumes due to limited access to local talent.
The Challenge
- Loan processing turnaround times exceeding five days
- Onshore hiring costs were increasing, with limited availability of experienced candidates
- Staff were overworked, and service levels were beginning to decline
The Solution
Vault Outsourcing established a team of five dedicated Mortgage Processing Specialists in the Philippines. These professionals were carefully selected, trained on Australian mortgage regulations, and fully integrated into the client’s workflow and CRM system.
Results:
- Application processing time was reduced by 30 percent
- The cost of loan processing has been reduced by 40 percent
- The business was able to handle 25 percent more loan applications without expanding its local workforce
- Client satisfaction scores improved due to faster turnaround and increased responsiveness
By partnering with Vault, the client achieved operational efficiency, improved service delivery, and positioned the business for continued growth. This case highlights how strategic offshoring can relieve pressure, contain costs, and support business scalability.
Offshoring to the Philippines gives financial services firms in Australia the flexibility and capability they need to compete in a fast-changing market. With Vault Outsourcing, you gain a strategic partner who understands your industry, speaks your language, and delivers results. Contact us today to learn how offshoring can help you overcome today’s challenges and build for tomorrow.
Experience. Capability. Trust.
Vault Outsourcing is a Philippine-based provider with proven success supporting aggregators, brokers, insurers, and fintech firms across Australia. We deliver real results by connecting you with the right people and processes to scale your business with confidence.