Outsourcing creates jobs in banking
Maricel E. Burgonio
Manila Times
THE Bangko Sentral ng Pilipinas (BSP) said the outsourcing of bank services created more jobs in the industry.
BSP Governor Amando Tetangco Jr. told reporters that central bank data showed employment in the banking system increased by 12 percent from 2000 to 2007, which was when the BSP implemented Circular 268 allowing lenders to outsource some of their services.
“Because the Philippine banking system is healthier, it is able to sustain overall growth and employ more people,” Tetangco said.
On Friday, members of the League of Independent Bank Organizations held a protest rally in front of the BSP, complaining against the implementation of Circular 268.
Tetangco said outsourcing is a business decision made by individual banks and financial institutions as a means to remain competitive, which is also a trend in other jurisdictions.
Under the circular, banks may outsource credit-card services; the printing of bank loan statements, other non-deposit records, bank forms and promotional materials; credit investigation and collection; processing of export, import and other trading transactions; and other functions such as information technology.
“What the BSP has done is to allow certain services that are not inherent to the business of banking, to be outsourced. I understand that banks provide retraining and retooling opportunities to affected employees. But in cases where certain jobs are lost in the original company, new jobs are created in the outsourcing industry,” Tetangco said.
The Philippines has become a major player in the outsourcing industry not only to service local requirements but more significantly, to respond to demand coming from abroad.
Moody’s Investors Service recently gave the Philippine banking system a stable outlook in light of the structural reforms put in place and the moderate impact of the global credit crunch.
The local industry consisted of 38 universal and commercial banks with 4,237 branches, 82 thrift banks with 1,254 branches, and 727 rural and cooperative banks with 1,406 branches. The industry had P5.133-trillion worth of assets at end-2007.
No Comments, Comment or Ping
Reply to “Outsourcing creates jobs in banking”