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.

Turning on the light with closed-loop methodology

A large part (55-65 percent) of a bank’s cost base is 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:

  1. Business lines
  2. Examine costs at a granular level
  3. Create standard taxonomy
  4. Create front-to-back view of businesses
  5. Evolve and transform businesses

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.

What’s next?

Our 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.

Get the details in our report or reach out to our team.

Return to strength

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.

To compete in the digital age, banks will have to become more profitable, rediscover their purpose and find ways to grow again.

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