Staffing Shortages Are Adding Burden to Back Office Operations at Credit Unions and Community Banks
Survey Shows Many Financial Institutions Struggling to Find Qualified Personnel to Perform Critical Operational Functions
NEW YORK, Sept. 28, 2021 /PRNewswire/ — Quinte Financial Technologies Inc. today released the results of its nationwide survey of credit unions and community banks that revealed a widespread shortage of qualified personnel to manage critical back-office functions; ranging from fraud mitigation and dispute resolution, to regulatory compliance, mortgage and loan processing and customer service. The reported staffing shortages and recruitment challenges were attributed to post-pandemic changes in career aspirations, reluctance to return to an office environment, as well as significantly higher use of online banking services by consumers.
According to Quinte President, Sriram Natarajan, “Our survey suggests that financial institutions of all sizes are experiencing a “perfect storm” of market conditions that make it increasingly difficult for them to address higher customer service expectations; to meet tougher compliance requirements; and to manage increased consumer demand for online products and services.
Mr. Natarajan said, “The challenges in recruiting personnel to address key operational functions reflect two significant market factors. The pandemic has caused many individuals to reevaluate their life goals and career aspirations, as well as their willingness to commute or to return to an office setting. Secondly, the digitization of financial services has reduced the number of bank branch locations, and ensured consumer reliance on their personal devices and apps to make deposits and payments, apply for loans, open accounts and obtain customer service; which are all back-office functions that require people to manage.
“The financial impact of these trends,” Mr. Natarajan noted, “is what’s most concerning to senior management at credit unions and banks. To attract qualified personnel for operations, they will need to pay higher wages, which affects their institution’s profitability. Those increased costs come at a time when interest rates are expected to rise; reducing consumer demand for loans, which serve as their main source of revenue.”
Mr. Natarajan said, “We believe that one viable and immediate solution to the current staffing shortage is outsourcing of key operational functions, using firms that have a demonstrated track record in financial services, and that possess the process disciplines and security safeguards required by banks and credit unions. This has been, and remains Quinte’s value proposition, and over the past decade we have been honored to serve the operational needs of many of nation’s most respected financial institutions.”
– by Sriram Natarajan
Quinte Financial Technologies
Source: This article was originally published in “PR Newswire” on September 28, 2021