My Point of View on Firstsource’s UnBPO™: The Future of BPO in Banking and Financial Services

By Matt Slonaker

As someone who’s spent decades navigating the complexities of the Banking and Financial Services (BFS) sector, I’ve seen firsthand how the industry is being reshaped by rapid technological advancements, evolving customer expectations, and the relentless pace of change. The announcement of Firstsource Solutions’ UnBPO™ on February 24, 2025, from Mumbai, India, is nothing short of a game-changer. This bold redefinition of business process outsourcing resonates deeply with me, and I passionately believe it charts the course for the future of BPO in our industry. Here’s why UnBPO™ isn’t just a new model—it’s a movement that aligns perfectly with the needs of BFS and sets a new standard for how we deliver value.

The Urgency for Reinvention in BFS

The BFS sector is at a pivotal moment. Customers demand seamless, hyper-personalized experiences, while institutions grapple with regulatory pressures, cost efficiencies, and the need to stay ahead in a digital-first world. Traditional BPO models, built on labor arbitrage and siloed operations, are no longer enough. As Ritesh Idnani, CEO of Firstsource, aptly stated, “While the industry is set to surpass $400 billion in the next five years, its progress historically has largely been incremental.” Incremental won’t cut it anymore. In BFS, where agility, compliance, and customer trust are non-negotiable, we need a partner who doesn’t just execute tasks but drives transformation. UnBPO™ is that partner, and I’m all in on its vision.

Why UnBPO™ Resonates with Me

Firstsource’s UnBPO™ framework speaks directly to the challenges and opportunities in BFS. Its ten tenets—ranging from “service as a software” to outcome-driven commercial models—offer a blueprint for the future. Let me break down why I believe this approach is not just relevant but essential for BFS.

1. Physics of BFS: The lines between front office, back office, IT, and BPO are disappearing. In BFS, the customer journey spans digital channels, call centers, and back-office operations. UnBPO™’s “service as a software” mindset integrates these functions into a cohesive, tech-driven experience. For example, when a customer opens a new account, they expect a seamless process—whether they’re online, on the phone, or dealing with compliance checks. UnBPO™’s holistic approach ensures that BFS institutions can deliver this by breaking down silos and leveraging technology to unify the experience. This is critical in an industry where trust hinges on flawless execution.
2. Technology Arbitrage as the New Frontier Labor arbitrage has been the backbone of traditional BPO, but in BFS, where margins are tight and innovation is critical, technology arbitrage—using AI, automation, and analytics for leverage, not just cost—sets winners apart. UnBPO™’s focus on tech-driven solutions means BFS providers can automate routine tasks like transaction reconciliations while using AI to predict customer needs, such as personalized loan offers. This isn’t just about saving money; it’s about creating value that keeps institutions competitive.
3. Deep Domain Expertise BFS is an “inch wide, mile deep” industry. Regulatory nuances, fraud detection, and customer retention require specialized knowledge. UnBPO™’s emphasis on deep domain expertise ensures that outsourcing partners aren’t just task-takers but strategic allies who understand the intricacies of Basel III compliance or anti-money laundering protocols. This expertise is what I believe will differentiate top-tier BFS players in the coming years.
4. AI Centers of Excellence The idea of “location debt” hits home in BFS, where global operations can create inefficiencies. UnBPO™’s AI Centers of Excellence consolidate talent and tech to drive innovation. For instance, an AI center could develop models to detect fraudulent transactions in real-time, a critical need in BFS where fraud losses are projected to exceed $40 billion annually by 2027. Centralizing expertise ensures faster, smarter solutions.
5. Redefining the Future of Work In BFS, the workforce is evolving—think AI agents handling routine inquiries, gig workers supporting peak demand, and employees upskilled in data analytics. UnBPO™’s focus on redefining “Who, How, and What” aligns with this reality. I’ve seen BFS institutions struggle with rigid staffing models; UnBPO™’s flexible approach ensures the right talent is deployed at the right time, whether it’s a human expert or an AI bot resolving a customer query.
6. Collaboration Over Hierarchies Silos kill agility in BFS. UnBPO™’s push for collaboration over hierarchies means faster decision-making—crucial when responding to market shifts or regulatory changes. For example, when a new regulation like GDPR or CCPA emerges, cross-functional teams can quickly align processes, avoiding costly compliance gaps. I’m passionate about this because BFS thrives on speed and adaptability.
7. Hyper-Personalized Skilling Middle management in BFS often clings to outdated practices. UnBPO™’s focus on hyper-personalized skilling empowers managers to lead in an AI-driven world. Imagine a manager trained to use predictive analytics to identify cross-selling opportunities—this is the future I envision, and UnBPO™ makes it actionable.
8. AI as a Mindset AI isn’t just tech; it’s a way of thinking. In BFS, integrating AI into operations—like using natural language processing to analyze customer complaints—can uncover insights that drive retention. UnBPO™’s commitment to democratizing AI access means every BFS institution, not just the giants, can leverage these tools. This levels the playing field, and I’m excited to see it unfold.
9. Partnerships as the Ecosystem No BFS institution operates alone. UnBPO™’s orchestrator role—bringing together fintechs, regtechs, and data providers—creates a powerful ecosystem. For example, partnering with a fraud detection startup can enhance a bank’s capabilities without building everything in-house. This collaborative approach is why I believe UnBPO™ will redefine BFS partnerships.
10. Outcome-Driven Models Traditional BPO contracts, which dominate 50-60% of the sector, focus on inputs like hours worked. UnBPO™’s outcome-driven models—tied to metrics like customer satisfaction or fraud prevention rates—align with BFS priorities. I’m passionate about this shift because it ensures accountability for results, not just effort, which is critical in an industry where outcomes drive trust.

Industry Validation and Real-World Impact

The endorsement from leaders like Phil Fersht of HFS Research reinforces my conviction. His point about the shift to “software-first value creation” is spot-on for BFS, where generative and agentic AI can transform everything from loan underwriting to customer onboarding. Kendra Tucker of Truckstop and Dennis Stetzel of ETS also highlight how UnBPO™ enables agility and aligns with AI-first strategies—key for BFS institutions aiming to stay relevant.

Why This Is the Journey for BFS

I’m passionate about UnBPO™ because it’s not just a rebrand—it’s a reinvention that addresses the core challenges of BFS: delivering exceptional customer experiences, staying compliant, and leveraging technology to stay ahead. The traditional BPO model is a relic; UnBPO™ is a forward-looking framework that empowers BFS institutions to navigate disruption. Whether it’s using AI to predict customer churn or building agile teams to respond to regulatory shifts, UnBPO™ equips us for a future where relevance trumps scale.

A Call to Action

As someone deeply invested in the BFS sector, I see UnBPO™ as the path forward. It’s a leaders call to move beyond incrementalism and embrace transformation. Firstsource’s vision aligns with my belief that BFS must evolve to meet the demands of a digital, customer-centric world. Let’s not just adapt to change—let’s lead it. UnBPO™ is the spark, and I’m all in for the journey.

For more details, visit Firstsource’s UnBPO™ announcement.