Cost reduction in the European Banking sector - Roland Berger
Cost reduction in the European Banking sector - Roland Berger
Cost reduction in the European Banking sector - Roland Berger
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Bank<strong>in</strong>g_cost_<strong>reduction</strong>_FINAL_270712.pptx<br />
16<br />
In many o<strong>the</strong>r <strong>in</strong>dustries, <strong>the</strong> <strong>reduction</strong> of complexity has been<br />
a major performance enhancer<br />
INCREASING COMPLEXITY<br />
IN FINANCIAL SERVICES<br />
EXAMPLE OF A COST TRANSFORMATION JOURNEY - TELECOM<br />
> Successive phases <strong>in</strong>creas<strong>in</strong>g<br />
complexity<br />
– Before 2008 : "Growth" (new<br />
products, new geographical<br />
areas, new activities)<br />
– After 2008 : "Regulatory<br />
Response" (staked <strong>in</strong>itiatives,<br />
budget cuts, <strong>in</strong>creas<strong>in</strong>g<br />
resources)<br />
> Internal organization more and<br />
more complex<br />
– Additional standards<br />
– Matrix form of organization<br />
– Stack of managerial levels (HQ,<br />
activities, entities, bus<strong>in</strong>ess<br />
units, …)<br />
– …<br />
1<br />
Productivity<br />
Achieved (2004)<br />
> OPEX sav<strong>in</strong>gs<br />
EUR 2 bn<br />
> Headcount<br />
<strong>reduction</strong><br />
26,400 FTE<br />
2<br />
Simplify<br />
Achieved (2007)<br />
> OPEX sav<strong>in</strong>gs<br />
EUR 1.8 bn<br />
> Headcount<br />
<strong>reduction</strong><br />
20,000 FTE<br />
3<br />
Sp<strong>in</strong>-off<br />
Achieved (2010)<br />
> OPEX sav<strong>in</strong>gs<br />
EUR 3 bn<br />
> Sp<strong>in</strong>-off of<br />
45,000 FTE
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