Macro cost lens: Strategy
Macro cost lens: Simplicity
Macro cost lens: Engineering

Macro cost lens: Strategy

Strategy — Defining the long-term vision and plan for the bank, pulling together multiple executive agenda items into one integrated approach.

Cost reduction levers and opportunities

1.1 Geographies, markets, products: Reduce presence in low performing customer segments and product areas

1.2 Operating model & balance sheet: Reduce the cost of funding by optimizing the balance sheet

building

Macro cost lens: Simplicity

Simplicity — Ensuring there is transparency and accountability, strong governance, operational and focused executive leadership, and one primary axis through which it operates. We observe that banks with highly simplified models have a significant cost advantage.

Cost reduction levers and opportunities

2.1 Organizational model: Reduce organizational complexity, including reporting, decision-making and governance structures

2.2 Transformation optimization: Create a core organizational capability around transformation

2.3 Cost management focus: Drive a cost focus through strategy and accountability

building

Macro cost lens: Engineering

Engineering — The underlying designs adopted across different components and functions within the bank.

Cost reduction levers and opportunities

3.1 Digitization & operational efficiency: Digitize work from front to back office and drive enterprise-wide automation

3.2 Channel optimization: Digital shift with interventions to drive behavioural change

3.3 Organization design & people: Drive the simplification of the organizational design throughout the bank, focus on spans and layers, and realignment of pay and rewards

3.4 Technology optimization: Accelerate the migration of critical environments to the cloud, decommissioning of the obsolete applications and removal of data centres

3.5 Property optimization: Rationalization of operations between head offices and regions, adjustment of seat to desk ratio to 2.5:1

3.6 Sourcing & super management: Drive third-party spend down through challenge of integrated supply and demand

3.7 Tax & Legal optimization: Optimization of tax and legal structures

building