Despite a wave of cost-reduction initiatives and competitive moves to meet the new “digital normal,” the banking industry’s performance has been underwhelming. Accenture research has revealed that banks must take on three cost-related challenges:
Linking cost reduction and value creation to succeed.
Aligning around cost and growth initiatives.
Securing the right capabilities for sustainable gains.
To drive profitable, sustainable growth, banks must proactively seek out value, take out non-value adding costs and reinvest those savings into initiatives that can drive competitiveness. By employing strategic cost reduction across the organization, banks can fund new revenue streams and restructure their operations to reclaim profitability.