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
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
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