What Is Back Office?

The back office pertains to administrative and support personnel who do not engage with clients. Back-office positions encompass settlements, record management, regulatory adherence, accounting, and IT support.

A financial services company is typically divided into three sections- the front office (such as sales, marketing, and customer service), the middle office (risk management), and the back office (administrative and support functions).

Early businesses arranged their offices so that the front section was occupied by client-facing staff while the rear of the workplace contained operations and administration. Therefore, the phrase "back office." Currently, many back-office positions are frequently found in locations separate from the headquarters. Some operate in areas with reduced rent and labor expenses, while others are outsourced internationally or work remotely.

How Back Office and Front Office Collaborate?

Although back-office staff members don't interact with customers, they tend to actively interact with front-office staff.

A salesperson might ask back-office staff for accurate inventory and pricing information. Real estate marketing professionals frequently interact with sales agents to create attractive and relevant marketing materials. IT professionals regularly work together with all divisions of the company to ensure that systems function properly.

Students from non-target schools often view back-office roles as a path to gain experience and move into front-office positions. (Target schools send significant numbers of their students into investment banking each year and have extensive alumni networks in the industry.)