The black box is a metaphor for the complex and opaque costs, functions, processes and activities in banks that are not directly related to any single line of business and hinder profitability.
To compete in the digital age, banks will have to shine a light into the black box, rediscover their purpose, become more profitable and find ways to grow again.
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To make the leap to becoming a digital bank feasible, banks must first become the best version of the traditional bank most of them are.
This effort will produce what we call the “Future Ready Bank,” a simplified, profitable business that is manageable and agile enough to be transformed, and that generates the funding required to fuel the leap to a digitally native bank.
A large part (55-65 percent) of a bank’s cost base are not directly attributable to any single line of business.
Banks can shine a light into the black box by implementing the principles of Accenture’s Closed-Loop/Zero-Based methodology. To do so, senior management must establish a culture in which visibility, transparency and ownership of costs are the goals of the organization, at every level.
Interact with the illustration in this module to reveal the five steps of Accenture’s Closed-Loop methodology.
Accenture’s Closed-Loop/ZBX toolkit and forensic approach to cost can create the cultural, procedural and data conditions required to return to strength, helping banks do so in a fraction of the time.
