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Video

Roberta Berlinghieri: Big, Bold Bank Cost Transformation

Banks can adopt four practical guidelines to redesign their operating models.

  • April 12, 2018

Video

Roberta Berlinghieri: Big, Bold Bank Cost Transformation

 Roberta Berlinghieri, a partner with Bain's Financial Services practice, outlines four practical guidelines that banks can adopt to redesign their operating models, develop a culture of simplicity and accountability, and meet return-on-equity targets.

Despite their best efforts, many banks find their cost-savings programs often get derailed. Roberta Berlinghieri, a partner with Bain's Financial Services practice, outlines four practical guidelines that banks can adopt to redesign their operating models, develop a culture of simplicity and accountability, and meet return-on-equity targets.

Read the Bain Brief: Big, Bold Bank Cost Transformation

Read the transcript below.

ROBERTA BERLINGHIERI: Banks think that they have been reducing costs for years. For instance, shrinking their branch network or focusing on external costs through procurement initiatives. Despite all those efforts, actually cost and complexity is still there. And that's normal, because cost-cutting can only go that far.

For banks who want to change their cost positioning and reduce complexity, at Bain, we have four practical guidance to offer. First, evolve your operating model to dismantle siloed operations and departments. Second, profoundly change the nature of your work, not only focusing on the most profitable segments and products, but redesigning―I would say, rethinking―processes and customer experience.

Third, deploy digital, but only to the processes that you already rethought and simplified. And fourth, evolve the culture of your company to avoid cost creeping back in, and install a culture of simplicity and accountability. With a new operating model in place and a culture of simplicity and accountability, banks will really be able to increase the odds of meeting their return on equity targets.

Read the Bain Brief: Big, Bold Bank Cost Transformation

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