The Cost Productivity Benchmark enables banks to understand their relative performance on the key drivers of cost efficiency and productivity. It supports the identification of actions and recommends levers to improve cost efficiency.
Why it’s important
Increased competition from digital/fintech challengers, changes in customer behavior along with regulatory pressures have made it essential for banks to focus on sustainable cost reduction.
The Cost Productivity Benchmark provides a holistic view of the cost base and identifies major cost saving opportunities that serve as a crucial input for planning cost reduction or transformation initiatives.
Front office efficiency:
Is the front-office staffing mix optimized for the future of the branch, both in terms of costs and FTEs?
Middle office and support functions efficiency:
What the Cost Productivity Benchmark provides
Identifies improvement opportunities by tracking both root cause KPIs and outcome KPIs (e.g. offshore and centralized FTEs and outsourcing) instead of pure cost KPIs
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