Supervision of Outsourcing of Digital Services by Banks
The outsourcing of banking activities has grown rapidly in recent years, and forecasts suggest that this trend is likely to continue in the near future.
As many banks still lack the in-house expertise to develop the software, technologies and networks to offer more advanced digital financial services products, most of these activities are outsourced to specialist third-party service providers. As they become increasingly dependant on external contractors, this practice raises concerns and risks from sharing customer data outside of the bank.
This case study highlights issues that arise from the outsourcing of banking activities in the Eastern Europe and Central Asia (EECA) region and outlines their possible solutions.