The Right Way to Offshore for Financial Services

The Right Way to Offshore for Financial Services – Australian financial services firms are navigating a perfect storm of challenges: talent shortages, rising operational costs, regulatory pressures, and an urgent need for digital transformation. These roadblocks are not only straining internal resources but also threatening growth and competitiveness.

In response, many forward-thinking institutions are exploring strategic offshoring, particularly to the Philippines, as a way to scale efficiently, reduce costs, and maintain compliance without compromising service quality.

Job Market Outlook

Australia’s financial sector is grappling with a tight labour market, making it increasingly difficult to recruit and retain skilled professionals such as accountants, credit analysts, and technical support representatives. Seventy-nine per cent of Australian employers report difficulty finding workers with the right skills. This shortage impacts everything from client service delivery to regulatory compliance and business growth.

Rising Operational Expenses

With rising wages, office rents, and technology infrastructure expenses, financial firms are under pressure to optimise costs. Yet, cutting corners is not an option in a sector where accuracy, security, and compliance are paramount.

Compliance Complexity

Regulatory bodies like the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) impose stringent requirements. Maintaining robust compliance frameworks demands significant internal resources, often diverting attention from innovation and client engagement.

The Race for Digital First

Australian financial institutions are under pressure to adopt digital solutions, from AI-driven analytics to cloud-based platforms. However, sourcing AI-equipped talent locally is a major hurdle, slowing down transformation initiatives.

Smart Offshoring is Here

Strategic offshoring is no longer just about cost-cutting; it’s about building resilience, scaling operations, and exponential growth.

Access to a Myriad of Financial Talent

The Philippines offers a highly educated, English-proficient, and financially literate workforce. Roles that can be effectively offshored include:

Filipino professionals are known for their strong work ethic, cultural alignment, and adaptability, making integration seamless.

Undeniably Cost-Efficient

Offshoring to the Philippines can deliver up to 70% savings on labour costs. These savings can be reinvested into:

Offshore teams allow for rapid scaling without the constraints of local hiring. Time zone differences enable 24/7 operations, ensuring continuous processing and round-the-clock support.

Robust Data Privacy Frameworks

Vault Outsourcing adheres to ISO 27001 standards and implements rigorous data protection protocols, ensuring compliance with Australian and international regulations. Our operations are designed to meet the expectations of APRA and ASIC.

Innovative Specialisation

By offloading non-core, repetitive tasks, your onshore teams can focus on:

Offshore Gamechangers

Vault Outsourcing brings deep industry expertise, bespoke solutions, and end-to-end support to every client engagement.

Our Process

Delivering Growth and Efficiency for a Personal Loan Provider

A mid-sized Australian personal loan provider was experiencing rapid growth but struggled to find skilled loan processing officers locally.

The Challenge

The company faced mounting pressure from high application volumes, leading to longer turnaround times, rising operational costs, and client dissatisfaction. With the local talent pool stretched thin, the firm risked losing market share due to operational bottlenecks and missed opportunities.

The Solution

Vault Outsourcing partnered with the lender to establish a dedicated offshore team of five Personal Loan Processing Specialists in the Philippines. Our solution included:

This approach mirrors successful models used by other Australian firms, where offshoring is treated as a strategic extension of the onshore team.

Long-Term Results

These outcomes align with broader industry trends, where Australian companies outsourcing to the Philippines report up to 73–80% cost savings and access to top-tier financial talent.

This case demonstrates how strategic offshoring can directly address capacity and cost challenges, empowering Australian financial services firms to scale efficiently, maintain compliance, and enhance service delivery.

Offshoring to the Philippines offers Australian financial services firms a scalable, cost-effective, and compliant solution to today’s most pressing challenges. From talent acquisition to operational efficiency, the benefits are clear.

Ready to explore how offshoring can transform your financial services operations? Contact us today for free expert advice. Vault Outsourcing is committed to client success, backed by industry expertise, secure operations, and a proven track record in delivering offshore excellence.