Scaling efficiency: Simplifying processes to increase bank productivity
Bank executives constantly prioritize productivity, efficiency, and cost reduction. Past initiatives have achieved modest savings — 3% to 5% for most banks and up to 10% for leaders — but these benefits can diminish with shifting priorities.
Given current macroeconomic uncertainties, maintaining a strong focus on efficiency is essential for achieving an ROE of over 10% and an ROA above 1.5%. Improved efficiency also creates surplus cash that can be reinvested in AI, technology upgrades, data management, and cybersecurity.
