United Kingdom

Cost Optimisation 

Recent years have seen banks’ profit margins erode significantly. Global recession, crisis in the Euro zone, major regulatory change and the deleveraging of balance sheets has placed banks under significant pressure to operate profitably in a hostile climate. To survive and thrive in these turbulent times, it is no surprise that banks are increasingly looking towards significant cost base reductions.


In the UK, many financial service institutions have already begun the process of reducing their cost base.  The range of options at their disposal is vast and includes transforming their operating models, reducing spans and layers and introducing more cost efficient processes and technologies.  

People in a meeting

Our Cost Optimisation team works with our clients to structure, shape and deliver cost reduction programmes that bring lasting results.  To be successful in their cost reduction efforts, organisations need to make sure that:

 

  • The style of the cost programme is debated by the Executive Board and the implications of the chosen style understood.
  • The objectives of the cost programme are extremely explicit and consider the trade off between costs and income and potential impacts on customer service and risk.
  • The Executive select the right lens or combination of lenses to focus and structure the cost optimisation programme.
  • The change journey is choreographed to create momentum and initiative.
  • The focus is not just on  the cost levers so much as the sequence in which they are deployed.
  • A professionalised programme management approach and supporting tools underpin the cost reduction programme.
  • The ‘diet’ of cost reduction is underpinned by a cost conscious culture to support ‘lifestyle change’ going forward.

Contact

Adrian Harkin

Adrian Harkin

Partner
KPMG in the UK

 

020 7311 6266adrian.harkin@kpmg.co.uk

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