“Banks will focus on what they can control — as opposed to taking any undue risks as they work through all this,” said Kevin Fitzsimmons, an analyst at D.A. New tools and techniques were required to report on productivity, quality, service, and cost data. Here are some common tactics that banks, large and small, are utilizing in their efforts to improve operating efficiency: Realigning branch staff. San Francisco-based Wells Fargo & Co. and Bank of America Corp. in Charlotte both announced major cost-cutting initiatives this past spring (in March and April respectively) and others have followed in recent weeks. Davidson. Handsomely. Whether true or not, Bank of America has already received heat and bad publicity for trying to apply cost cutting measures that ultimately would have minimal impact on … UMB Bank of Kansas City, Mo., for example, expects to reduce its branch staffing expenses by $1.9 million over three years by utilizing such a system to coordinate branch staffing, planning and forecasting, according to Meara. Earlier this month, Deutsche Bank circulated a memo noting that free fresh fruit will no longer be provided to employees, according to the FT. Bankers will now need to dip into their own wallet to stave off scurvy, it appears. This story took place at one of the largest consumer banks in the United States. Error rates dropped by an amazing 35 percent. Bob Meara, senior analyst for Boston’s Celent, part of the Oliver Wyman Group, says that more banks are using teller management software to help them staff their branches more effectively, based on when customers are most likely to come in and what they need at various times. ➤Incorporating nonfinancial services is a way for fintechs to counterattack big techs' foray into finance. Eliminating unnecessary document printing and electricity usage can save even a smaller bank thousands of dollars annually and can also help boost the bank’s reputation as environmentally friendly. They wanted to cut operational costs and improve efficiency and effectiveness in their back-office support groups. The London-based bank, which is planning to cut 35,000 jobs to trim costs, is seeking to double the number of mobile users by 2022, which could generate more revenue per customer. While other banks are pushing the pause button on pre-Covid job cuts and digital transformation projects, Deutsche Bank is pressing ahead with plans laid down in 2019…and seizing the opportunity to make further costs savings from home working and video-conferencing. “Business as usual” within this bank included multiple back-office support functions which created positions dedicated solely to rework. “I haven’t traveled to Little Rock in two months,” he says. HSBC, Goldman Sachs and UBS are all promising new strategies for the new decade. In the wake of coronavirus lockdowns, the world’s largest investment banks presented a united front in refusing to cut jobs. This website uses cookies and third party services. He points out that Extraco Banks, a Waco, Tex.-based community bank, was able to save $8,000 in paper costs last year, due to multiple initiatives such as imaging deposits at the teller line. Copyright © Lab Consulting Partnership, 2021 | All rights reserved, Cut Banking Costs Now: Achieve “The New Normal” for Productivity “Big Rock” 1 of 3: The retail branch network, The Lab’s unique self-funding engagement model and money-back guarantee, Automate Paycheck Protection Program Loans, Lean Six Sigma Projects for Finance and Accounting, Robotic Process Automation in Credit Unions, Robotic Process Automation in Finance and Accounting, Robotic Process Automation in Financial Services, Robotic Process Automation in Health Insurance, Robotic Process Automation in Investment and Asset Management, Robotic Process Automation Insurance Claims, what are retail banks doing to control costs and improve efficiency. One way to avoid out-of-town travel is to utilize video- or audio-conferencing. Instead, banks are being careful about worker hiring, training and deployment. With nearly 1,500 branches, 24,000 employees, and $175 billion in assets, they sought to cut costs and improve the efficiency of their retail branch network. Cost cutting measures are typically implemented during times of financial distress for a company or during economic downturns. Proven industry-leading practices were required to standardize NIGO fixes, streamline the workflow, and slash variance among teams. Cost cutting is a matter of commitment from the top management. In view of the depression in oil market, costs have been cut by most E&P companies and related services providers to levels no one would have imagined before. BAI is Bank Administration Institute and BAI Center, Cost-Cutting Tips for Revenue-Squeezed Bankers. And they wanted to improve the overall customer experience in the process. He estimates that these efforts will reduce existing costs by between 10% and 15% per year. They can also be enacted if … This is an absolutely true case study from the files of The Lab Consulting. While layoffs are typically seen as the most direct way to reduce this cost and some banks such as BofA have announced branch-closure plans, most institutions try to avoid this if possible due to the risk of alienating customers. Reducing internal use of paper and electricity. Perhaps the story of your bank, tactfully disguised as this one was, might end up in these blogs, too. Slow-Growth economy and shrinking revenues, bank managers are pulling the only lever they have left expense! Technology investment existing costs by between 10 % and 15 % per year cutting spend. Observers said in concert with the bank ’ s unique self-funding engagement model and guarantee! That: half of the Lab has helped some of the largest consumer banks the. Edges of their cost-cutting calculations well as support costs, he says 125 individual-improvement and cost-cutting opportunities identified... 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