Save-to-transform as a catalyst for embracing digital disruption has been saved
Save-to-transform as a catalyst for embracing digital disruption
Cost management practices and trends in the banking sector
Banks today face significant challenges from every direction and are using cost reduction as a tool to help fund their required growth investments.
Digital technology and digital disruption have burst on to the scene as key levers for cost management and business transformation around the world and throughout the banking industry.
In Deloitte’s biennial global cost survey cost management is a global and Asia Pacific (APAC) imperative, but failure rates are up. In Australia the failure rate is 85%. In Hong Kong it’s 83%) and in Singapore 87%. These three jurisdictions have higher failure rates than the rest of APAC countries – and higher than the USA at 82%.
Overall the failure rates in meeting cost transformation targets run at 80% in Asia Pacific region and at 81% globally.
As well as gathering these statistics from a global cost survey from those with direct involvement in cost management, including more than 1,200 executives and senior leaders around the world and 188 respondents from major banks, the attached The attached Deloitte report articulates three clear reasons for these high cost management failure rates covering implementation challenges, weak or unclear business cases, and erosion of savings due to unfeasible target setting.
Please don’t hesitate to reach out to Tony O’Donnell and the team to discuss how to successfully use cost management practices to both save and transform.
Published: February 2020
Deloitte's 2019 Cost Survey
Download the report