The public discussion about the banking industry has been so dominated by bonuses, regulation, the LIBOR rate and the current status of cash reserves that it's been easy to forget that banks have also been restructuring operations that have nothing to do with pay scales or nationalisation. Indeed, a quiet outsourcing revolution has been taking place behind the scenes in the world of banking, driven by the need for cost saving and the desire to take advantage of the changing market.

Increasingly, banks have been looking to outsource a wider range of functions as a response to the challenges of the global market. It's therefore no surprise that according to the World Retail Banking Report, 77 percent of retail banks now outsource at least one part of their business. Common industry estimates show that outsourcing provides banks with a saving of 20-40 percent, depending on whether processes are located locally or abroad.

High street banks have long embraced outsourcing in order to focus on their core business strategies. But now, the independent expertise of an outsourcer has become even more valuable as the established banks face opposition from new competitors such as Metro - the first new high street bank to be set up for a hundred years – as well as the likes of Tesco and Virgin, who have grown by using their reputation in other areas to enter the financial services market.

Another cause for concern is that over one in ten customers aged between 25 and 34 moved their bank accounts within the last year, according to a YouGov survey on banking behaviour. Gone are the days when customers could be relied upon to stay with a bank for life. Improving the consumer experience is now vital to retaining longstanding customers.

In this highly competitive market, where financial services businesses are fighting it out to secure market share and keep hold of their customers, new and innovative products are now a constant requirement for banks – and outsourcers can help to get these products to market more quickly.

Even for an established bank, the cost of developing and launching a completely new product and/or distribution channel can be very high. It is also a sizable medium to long-term commitment, as staff and premises will often need to be employed for up to five years, even if the initial campaign might only last for one or two years.

By outsourcing this function, however, banks are now able to launch new products within 30-60 days. In addition, by using an outsourcer for third party administration, banks can now delegate the responsibility customer communications, product distribution, complaint handling, customer communications and more by partnering with a skilled outsourcer that is able to embed itself in the heart of the bank's operations.

Outsourcing important areas like these can radically speed the time to market for news products, and also help to increase customer satisfaction in an environment where consumers are shopping around for financial products more than ever before – and are also willing to leave if the service isn’t up to scratch.

The future success of banking lies in the ability to improve business agility and to alter working practices. Though much in banking is uncertain, one thing seems highly likely: strategic partnerships with outsourcers will soon become the standard practice across the industry.