Understanding the 7 Different Types of Outsourced Financial Services

Published: January 11, 2022
7 Outsourced Financial Services

Many businesses opt for outsourced financial services because accounting and finance are crucial components of a business. Many financial companies benefit from financial service outsourcing from banks to insurance companies to commercial real estate.  

Keeping track of all financial transactions allow companies to maximize their resources, create a budget and projections, and evaluate business performance and growth. As money and financial functions grow more complex, these businesses outsource to third parties to save on costs without disrupting their operations.

This article will take a closer look at the specific kinds of outsourced financial services and how businesses benefit from them. Let’s get started!

7 Types of Outsourced Financial Services

You may be wondering, “What is financial outsourcing exactly?” Financial outsourcing is when a company contracts outside providers to handle various financial and accounting functions instead of in-house. Here are the particular services that businesses can outsource:

#1: Accounting Services

Accounting involves the detailed recording of all the business’s financial transactions, and it is one of the most common outsourced financial services. Here are some of the services included in this subset of financial outsourcing: 


Bookkeeping is the part of accounting where all of a company’s financial transactions are recorded into organized accounts known as ledgers. This also includes preparing source documents, financial statements, and other reports.

Management Accounting

Management accounting is concerned with measuring and analyzing accounting data to help managers make informed decisions. In this financial service outsourcing solution, a management accountant will monitor costs, sales, and budgets to identify future needs and goals.

Tax Accounting

Tax accounting is all about preparing tax returns and payments. In the corporate world, the focus is on assessing how business funds were spent and determining whether something is or isn’t taxable.

Accounting Audit

Accounting audits are conducted to examine whether an organization’s accounting and financial statements conform to the applicable laws and regulations. Auditors gather information and evidence to assess whether accounting statements contain errors or other misstatements of any kind.

Forensic Accounting

Forensic accounting is concerned with conducting investigations into the finances of a business, typically as a way to explain the nature of a financial crime such as embezzlement or fraud.

Payroll Services

Payroll processing may also be included in outsourced financial services. The professionals in charge of this outsourcing solution will handle salary computations, employee tax and ensure that everything complies with labor laws.

Statutory Reporting and Compliance

Statutory reporting and compliance involve submitting financial information to the relevant governing bodies, such as federal, regional, or state agencies. The purpose of this process is to ensure that the business is complying with laws and regulations. 

#2: Industry-Specific Financial Service Outsourcing

Banks, lending institutions, insurance companies, and real estate businesses are the sectors most in need of outsourced financial services specific to the functions they render. 

Insurance Companies

Policy Management

In the insurance industry, policy management is one of the primary tasks involving a variety of responsibilities, such as policy checking, issuance, renewals, and more. Given how time-consuming and complex these tasks can be, insurance companies sometimes opt for outsourced financial services. Handing policy management tasks to a capable team can reduce costs, save time, and even reduce risks.

Claims Administration

Processing insurance claims is another core function of insurance companies, involving reporting claims and providing appropriate releases upon settlement. Insurance companies typically outsource this service to improve their overall productivity without increasing overhead costs. 

Insurance Data Services

The insurance industry is a sector that generates a high volume of data entry and processing work. As such, outsourcing insurance data services can significantly alleviate the strain on in-house employees, freeing them up to take on more high-value functions.

Annuity Services

Annuities are long-term investments wherein your purchase payments are turned into regular payments that help protect you during your retirement. Insurance companies issue these services to individuals based on their specific goals, whether they need spousal protection, legacy planning, or other annuity plans.

Insurance Software and Productivity Tools

Financial service outsourcing solutions for insurance companies also involve software and productivity tools. When you work with a reliable outsourcing partner, you can access top-of-the-line technologies that streamline your operations and make it easier for your team to do their job.

IT Support

Having efficient technical support is crucial for insurance companies to keep up with marketplace changes and their ever-expanding pool of insurance data. The right IT support provider will know industry-specific regulations and practices and craft IT strategies that cater to an insurance company’s unique business objectives.

Call Center Support

In addition to outsourced financial services, insurance companies are also in need of call center support. These outsourced agents will typically answer telephone calls to collect premium payments, give information about insurance policies and benefits, and sometimes dispense essential health advice.


Insurance consultants specialize in different fields, including health, life, and auto. Their job is to help businesses and individuals identify their insurance needs, provide needed information about policies and premiums, and prepare quotes for the clients.

Operations Management

Keeping an insurance company’s operations running smoothly is no easy task, and having a reliable outsourced operations manager can help. This professional will monitor and manage the company’s process, ensuring the highest level of efficiency possible.

Real Estate

Virtual Assistants

In the real estate industry, virtual assistants are remote workers that handle data entry, calendar management, appointment scheduling, and other administrative tasks. Some virtual assistants also take calls and manage real estate social media accounts.

Property Management

Property managers are responsible for overseeing residential, commercial, or retail properties, including collecting rent, organizing maintenance and repairs, and advertising.

Sales Support

Real estate agents typically work on the road, and sales support teams assist them virtually. Sales support staff are responsible for setting up meetings, booking inspections, delivering proposals, and doing everything they need to support the agent.

Banks and Lending Institutions

New Customer Acquisition

Banks and lending institutions sometimes outsource their customer acquisition to a capable third party. By doing so, their organization can create a sustainable acquisition strategy and process, keep up with industry trends, and continually grow and gain new clients with ease.

Account Servicing

Banks and lending institutions allow capable outsourced teams to manage client accounts, solve customer concerns, and act as a liaison between the organization and the client in this financial service outsourcing solution.

Consumer and Commercial Lending

Sometimes, banks and lending institutions may also outsource professionals to take care of consumer and commercial loans, ensuring that all debt-based funding arrangements comply with laws and regulations.

Back-Office Process Management

Another outsourcing solution that banks and lending institutions benefit from is back-office support. Specialized outsourced teams perform administrative tasks, allowing the organization to focus on its core functions and boost its overall efficiency.

Higher-Value Functions

The banking sector’s less commonly outsourced financial services are higher-value functions like budgets, forecasts, regulatory returns, and capital management.

#3: Investment Management

Investment management, one of the outsourced financial services individuals and businesses can opt for, involves devising strategies for handling financial assets and investments. The goal of professional investment management will depend on the specific aims of the client. Investment managers assist individuals with asset allocation, stock selection, portfolio management, and more. 

In the business world, investment management refers specifically to ensuring that the company’s assets are maintained and maximized. Many fund managers and insurers now outsource this service to professional financial service outsourcing providers, allowing them to make the most of their portfolio and assets without costing too much time and money.

7 Outsourced Financial Services

#4: Unit Pricing and Custody

Merchants often provide unit pricing as a service to their customers because it helps consumers compare the prices of packed goods with greater ease. In many instances, the striking of unit prices and custody arrangements are outsourced to third parties regarding unit-linked funds and products. 

#5: Underwriting and Claims Payment

Another type of outsourced financial service that businesses can opt for is underwriting and claims payment. Underwriting refers to the process whereby someone takes a financial risk, whether an individual or organization, which may mean a loan or investment. Some insurance companies allow outsourced providers to process insurance claims or accept certain underwriting risks on their behalf.

#6: Financial Controller Services

This is one of the most common types of outsourced financial services. Financial controllers oversee all of a company’s accounting activities, ensuring that the ledgers accurately reflect all financial transactions. Typically, they may also be responsible for insurance and tax reporting.

Instead of hiring a financial controller in-house, some businesses outsource these services to a professional. Leveraging financial accounting outsourcing services can allow companies to focus on their core competencies while knowing that an expert takes care of all their record-keeping and tax reporting functions.

#7: Financial Analysis

Before building long-term business plans, companies need to conduct financial analysis, and many choose to outsource this service. With the help of a reliable outsourced financial services provider, a business can evaluate economic trends, set financial policies, identify new projects or investments, and plan for future business activities.

Corporate finance and investment finance settings both benefit from financial analysis. Analysts will thoroughly examine an organization’s financial statements to help fund managers make business decisions or aid investors in choosing the best investment opportunities.

Work With a Reliable Provider of Outsourced Financial Services!

In a constantly changing business landscape, be the participant who adapts and finds new ways to manage finances strategically. SuperStaff BPO is here to help!

Employing the best practices of Fortune 500 enterprises, SuperStaff BPO delivers a wide range of sound outsourced financial services. Get in touch today, and let’s talk about how our financial outsourcing solutions can empower your business!


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