Cost Transformation Is Once Again At Top Of Banks’ 2023 Agendas

Banks spend a lot of money – about $1.4 trillion annually across the front office, IT, operations, and corporate functions. And, every year, banks talk about cutting back on some of that spending. Indeed, many large banks closed out 2022 or started 2023 by announcing staffing cuts, with thousands of employees terminated amidst difficult capital markets and investment banking environments.

However, to be successful, managing cost shouldn’t be a series of one-off, short-term actions. It requires discipline and a deliberate strategy. Truly effective cost-management programs require a holistic, integrated approach working across technology, human resources, controls, and third-party expenditures. It’s not just cost-cutting; it’s cost transformation.