In the world of financial technology (fintech), customer service and back-office operations are undergoing massive changes, driven by advancements in technology and a rapidly evolving regulatory landscape. While many fintech companies have looked offshore to countries like India and the Philippines for cost-effective outsourcing solutions, the United States remains a critical player in the outsourcing market. Cynergy BPO, an industry-leading outsourcing advisory firm, argues that onshore customer and back-office support in the U.S. still holds a unique and irreplaceable advantage for certain processes and engagement with specific customer segments—particularly those in the highly regulated and customer-centric fintech sector.
The Case for Onshore Outsourcing in Fintech
The United States is a global financial hub, home to some of the world’s most innovative fintech companies and financial institutions. With stringent regulations, heightened customer expectations, and a constant demand for innovation, fintech companies require outsourcing solutions that go beyond cost savings. Onshore outsourcing offers fintech companies access to a highly skilled workforce, cultural alignment, and a deep understanding of the complexities surrounding financial regulations.
“In the financial technology sector, quality and compliance are non-negotiable, and onshore outsourcing ensures that companies meet both of these critical needs,”
says John Maczynski, CEO of Cynergy BPO.
“When it comes to handling sensitive financial information or complex customer inquiries, having onshore support provides a level of trust, reliability, and cultural alignment that can be difficult to replicate offshore.”
The Regulatory Edge
One of the most compelling reasons for fintech companies to consider onshore outsourcing is regulatory compliance. The U.S. financial system is governed by complex regulations, from the Gramm-Leach-Bliley Act (GLBA) to Dodd-Frank, FINRA rules, and CFPB mandates. These regulations demand stringent controls over data privacy, cybersecurity, and consumer protection.
Onshore outsourcing allows fintech companies to stay within the bounds of U.S. jurisdiction, ensuring compliance with federal and state regulations without the risk of cross-border data issues. Data protection and regulatory adherence are critical for maintaining trust with customers and avoiding hefty fines.
“By keeping operations onshore, fintech companies can more easily ensure they are compliant with local regulations, reducing both risk and cost associated with regulatory issues,”
adds Ralf Ellspermann, CSO at Cynergy BPO.
Unmatched Expertise for Fintech Operations
Cynergy BPO’s leadership team has accumulated decades of experience across financial services and fintech industries, working closely with renowned institutions like Chase, Citi, American Express, Chime, Netspend, Fiserv, and Intuit. This in-depth knowledge enables the company to provide finely-tuned outsourcing strategies that address the specific challenges fintech firms encounter.
“Whether a company operates in banking, payments, or newer spaces like cryptocurrency, success often hinges on finding outsourcing partners that thoroughly grasp financial technology’s unique demands,”
explains Ellspermann.
Cynergy BPO’s services stand apart by offering complimentary advisory and supplier sourcing assistance to fintech firms, ensuring access to top-tier onshore outsourcing solutions without adding excessive costs. The firm collaborates with 100+ award-winning BPO providers, guaranteeing that each fintech company finds the perfect match for its operational and regulatory needs.
Cultural Alignment and Customer Experience
In the fintech world, where customer experience is paramount, cultural alignment plays a key role. Customers in the United States expect seamless, efficient, and empathetic customer service. The ability to speak the same language fluently, understand cultural nuances, and handle complex financial inquiries requires a high level of expertise and familiarity with the U.S. financial landscape.
“Onshore customer support teams offer an unmatched level of understanding when it comes to handling the unique needs and concerns of American customers,”
Maczynski notes.
In contrast to offshore support, which may struggle with language barriers or a lack of deep market understanding, onshore call center agents are equipped to deliver personalized, high-touch customer service.
Fintech companies that provide services like digital banking, lending, or wealth management require customer service representatives who can manage everything from troubleshooting tech issues to answering highly sensitive financial questions. Onshore agents have the advantage of being familiar with the complex terminology and legal requirements associated with U.S. financial products and services. So even if a large portion of services can be placed outside the U.S., there is often a specific segment of processes that are better served to be sourced domestically, while still optimizing costs, and Cynergy BPO is able to provide the best of both worlds to our fintech clients.
“A customer calling about a tax-advantaged retirement account or investment options is looking for someone who can offer immediate, precise, and contextually relevant answers. This is where U.S.-based customer support excels. U.S. based agents likely have more exposure in their personal lives to a greater number and diversity of financial instruments”
says Ellspermann.
Quality Over Cost
While offshore outsourcing is often viewed through the lens of cost savings, onshore outsourcing in the United States focuses more on quality and risk mitigation. In the highly regulated fintech space, errors in customer support or back-office operations can result in not only lost customers but also regulatory scrutiny and significant financial penalties.
Back-office functions like fraud detection and mitigation, account reconciliation, as well as compliance monitoring are critical to the success of fintech companies. With RPA (robotic process automation) and AI tools becoming more prevalent, back-office tasks can be automated to reduce human error. However, having a U.S.-based team to oversee the more complex operations ensures higher levels of accuracy and compliance.
“Automation can handle many back-office tasks, but it requires skilled human oversight to ensure accuracy, compliance, and proper implementation of AI-driven processes,”
Maczynski explains.
Onshore support offers the blend of technological skills and regulatory knowledge needed to ensure back-office operations are not only efficient but also compliant with federal regulations.
Fintech-Specific Expertise
Another key advantage is the level of fintech-specific expertise available in the United States. Given that many companies operate in niche markets like cryptocurrency, peer-to-peer lending, or robo-advisory services, they require a specialized workforce with deep industry knowledge.
“Onshore outsourcing providers have access to a highly educated and skilled workforce that understands the intricacies of fintech products and services,”
notes Ellspermann.
“This expertise ensures that back-office tasks like compliance monitoring, financial reporting, and customer account management are handled with precision.”
This high level of expertise is especially important when it comes to handling sensitive tasks, such as anti-money laundering (AML) checks, Know Your Customer (KYC) activities, fraud prevention, and regulatory reporting. A deep understanding of the U.S. financial ecosystem allows domestic teams to execute these tasks with greater accuracy and foresight.
The Human Element in a Tech-Driven World
While fintech is undeniably tech-driven, with AI, blockchain, and RPA automating much of the front and back-office processes, the human element remains essential. This is especially true in customer support, where empathy, trust, and understanding play a huge role in building long-term relationships with customers. Customer service agents are not only trained to solve problems efficiently but also to provide the personalized, empathetic service that builds brand loyalty.
“Technology can’t replace the human touch, especially when it comes to financial services where customers place a high value on trust and communication,”
says Maczynski.
This is why onshore outsourcing remains a crucial strategy for fintech companies that prioritize customer satisfaction and retention.
Why Onshore Still Reigns Supreme
In a fintech landscape defined by rapid innovation, tight regulations, and evolving customer expectations, onshore outsourcing continues to offer irreplaceable value. For fintechs, it’s not just about cutting costs—it’s about ensuring compliance, delivering superior customer support, and maintaining operational efficiency in a highly complex industry.
Cynergy BPO, with its network of 100+ industry-leading BPOs, helps financial innovators and disruptors companies navigate this landscape by offering tailored solutions that meet their needs. As financial technology continues to grow and evolve, onshore customer and back-office support will remain critical to the success of companies operating in this space.
“In this industry, trust is everything, and nothing builds trust like high-quality, compliant, onshore operations,”
concludes Ellspermann.
While offshore business process outsourcing may appeal to fintech companies looking for cost-saving opportunities, onshore outsourcing in the U.S. remains supreme for those processes and activities in which compliance, quality, and unparalleled customer experience are paramount.
