With increasing transformation of the financial services industry, financial organizations seek to optimize
their business capabilities in order to expand market and wallet share. Trust outsource providers assist in this endeavor
by providing such organizations with competitive strategies to expand business capabilities while maintaining focus on
core business objectives.
By aligning products and services
with client expectations and preferences, selecting appropriate delivery channels and formulating effective marketing campaigns,
community banks, investment advisors, credit unions and other financial organizations can be successful in serving needs of
affluent trust clients seeking sophisticated financial management services. And, providing those services on an outsource
basis can be profitable to the sponsor while representing value-added services to customers.
Trust Outsource Providers
Selected corporate fiduciaries offer turnkey trust outsourcing
services while others offer outsourcing on an account-by-account basis. Still other providers offer outsource processing
of selected components such as back-office operations.
trust outsourcing" can perhaps be more accurately defined as insourcing since it involves delivery by the provider
of an entire business line that enables the client to leverage virtually all resources of the provider. Furthermore,
selected providers will even offer their clients branded-identity.
selecting outsource providers can include:
- State or federal charter
- Governing trust laws
- Regulatory approvals
- Ownership rights
- Duties and responsibilities
- Fiduciary and business risks
- Capitalization requirements
- Costs--up-front, on-going & termination
- Fee share
- Business lines offered
- Insurance protection
- Minimum asset growth requirements
investment management responsibilities
- Required skills
Evaluation and Selection
FiPar assists financial organizations evaluate
benefits associated with outsourcing versus traditional business models and helps them select appropriate providers.
Turnkey outsourcing represents a strategic opportunity to leverage the providers resources--capital, technology, time and
intellectual capabilities--while gaining competitive advantage in the marketplace.