No stone unturned
Transformational cost reduction in an era of market volatility
Five years after the crisis erupted, financial institutions remain under huge strain. An unprecedented range of economic, regulatory and competitive forces is putting pressure on operating margins, investment budgets and investor returns. There is no end in sight to this pressure, and institutions therefore need to assume that change is here to stay.
Cost reduction will play a big part in their response to this new era of persistent volatility and uncertainty. While many firms have already embarked on a range of organisational restructuring and cost reduction programmes, they have had mixed long term results. The key challenge now is how firms achieve more from their cost reduction efforts, and how to do so permanently.
Our paper explores the numerous challenges facing UK banks and insurers and looks at what they can do, despite this transformed landscape, to ensure they effectively manage this change and emerge with a competitive advantage.