Faced with a continually sluggish economy, banks continue to look for ways to improve their cost base. Many financial institutions have chipped away at run-the-bank costs but still remain unable to invest in strategic change initiatives that can provide a sustained cost differentiation over time.
Addressing this core cost challenge is a key priority for executives. Up until five or six years ago, executives needed to save 10 to 20 percent on their institution’s annual cost base. Today, that figure has risen to 50 percent, requiring banks to drive much more fundamental change within the institution to lower the cost base. Most banks want to move ahead with transformative business and technology change initiatives, but are currently unable to do so. Many don’t have the flexibility within their workforce to drive and champion those kinds of big change efforts.
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