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Save-to-transform as a catalyst for embracing digital disruption
Deloitte’s Second Biennial Global Cost Survey: Cost management practices and trends in the banking sector
How is banking different?
Cost reduction is slightly more prevalent in banking than globally across industries. In the banking sector, 72% of the surveyed companies plan to undertake cost reduction initiatives over the next 24 months, slightly higher than the global average (71%).
Banks are more positive than average about growth. Over the past 24 months, 89% of banking respondents had a positive revenue outlook—higher than the global average across all industries (86%). Similarly, for the next 24 months, the banking sector’s revenue outlook is even more positive (90%) than the global average (86%).
The save-to-transform mindset is even more prevalent in banking than globally. The save-to-transform mindset is characterized by a simultaneous strategic focus on sales growth, cost reduction, product profitability, technology implementation, and digital enablement. Compared to the global respondent pool across industries, banking respondents report higher priority levels in all those areas.
Expected implementation rates are higher than average for automation and cloud technologies. In the banking sector, implementation rates for digital technology over the next 24 months are expected to be slightly higher than the global averages across industries for automation (+3%) and cloud solutions (+4%), but lower for cognitive technologies (-5%) and business intelligence (-12%).
Digital leaders have a bigger impact in banking than globally across industries. On average, banks with a designated digital leader have a much higher level of technology implementation (+275%), even higher than the implementation impact of a digital leader globally across industries (+118%).