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Finance

Time to bring your money in-house

What could be more mission critical than money? So why do enterprises the world over outsource this vital aspect of their operations to banks?
Written by Phil Wainewright, Contributor on

I see there's an argument raging about where to host email, with a vocal minority vehemently in favor of keeping it in-house. Having carefully examined the arguments, I'm wondering why these people are still outsourcing their banking.

What could be more mission critical to the commercial lifeblood of a business than money? And yet enterprises the world over are entrusting this vital aspect of their operations to money hosting providers — otherwise known as banks — despite a track record of repeated fraud, deception and failure running throughout the history of the banking industry.

Why would anyone want to give up control of such a vital resource to outsiders? The technology to securely and safely store, transport, lend and hedge money is perfectly well understood. Compared to the equivalent bank charges a typical enterprise has to pay out over the course of a year, you can easily show that, with prudent purchasing and the right staff, you'd save money by doing it yourself. Surely it's a no-brainer?

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