Optimize: harness technology to drive next-generation efficiency

Global Banking Outlook 2017

  • Share

Harness technology to drive next-generation efficiency

For almost a decade, banks: particularly those in developed markets: have touted expense management as one of the primary levers that they could pull to improve profitability, focusing on tactical measures such as reducing staff costs, optimizing physical footprints and simplifying processes.

Banks now need to make a decisive, forward-looking effort to embrace and harness technology to meaningfully reduce costs and risks, while also improving agility.

EY - Global Banking Outlook 2017


The optimize agenda: an action plan

EY - Global Banking Outlook 2017

Actions for the next 12 months:

  • Invest in robotic process automation (RPA): integrate RPA into existing interfaces to reduce the cost of existing, high-frequency manual operations by 40% or more.
  • Use big data and technological advancements to improve modeling capabilities and support business decisions: improve internal Risk Weighted Asset (RWA) models, evaluate the profitability of various business activities and drive further savings.
  • Identify a strategy to replace or renew core banking systems: there are other approaches banks can take to renew their systems: build a parallel core, replace modules gradually, or surgically replace parts.

EY - Global Banking Outlook 2017

Actions for the next 36 months:

  • Embrace the utility model: gain economies of scale by working together on common external platforms or by pooling resources to manage back-office processes.
  • Actively invest in blockchain: develop and test applications and look for opportunities to help to build the public blockchain ecosystem.