Save-to-transform as a catalyst for embracing digital disruption
Deloitte’s 2019 Global Cost Survey: Cost management practices and trends in the banking sector
In a challenging environment, cost management remains a strong imperative for the entire global banking industry. Most banks continue to have positive expectations for revenue growth. At the same time, more and more banks recognize the need to manage costs to transform, by investing in key digital innovations.
About the report
Banks today face significant challenges. Low or negative interest rates continue to create intense margin pressure and barriers to grow. Increased competition from Neobanks and FinTechs continues to pose a constant threat of disruption. Meanwhile, customers preferences and expectations are endlessly shifting and rising.
In this challenging environment, cost management remains a strong imperative for the entire global banking industry; however, the prevailing mindset seems to be expanding from save-to-grow to save-to-transform. Most banks continue to have very positive expectations for revenue growth, and many are using cost reduction as a tool to help fund their required growth investments. However, in today’s increasingly digital world, more and more banks also recognize the need to transform their operations and capabilities with infrastructure investments in key digital innovations, such as robotic process automation, cognitive technologies, business intelligence, and cloud-based ERP systems.
This report provides an up-to-date view of the cost management practices and trends shaping the future of banking and global business. It also takes a detailed look at how the latest digital technologies and cost management strategies are acting as a catalyst for transformation in a world being actively redefined by digital disruption.
How is banking different?
- Cost reduction is slightly more prevalent in banking than globally across industries.
- Banks are more positive than average about growth.
- The save-to-transform mindset is even more prevalent in banking than globally.
- Expected implementation rates are higher than average for automation and cloud technologies.
- Digital leaders have a bigger impact in banking than globally across industries.