It must be a continuous effort, rather than a one-off initiative, and your strategy must address all levers of the cost. Maintaining a sophisticated IT environment and multiple data centers is This is where they can gain the most, not only in terms of cost but also in business value creation – for example: AI/ML assisted demand forecasting and inventory planning, cognitive sourcing and procurement, robotics assisted warehousing, etc. They can then manage negotiations with suppliers and reward those who actually drive category sales. By using intelligent algorithms, you can detect fraud and prevent potentially malicious actions. Data-driven decisions can enhance performance and enable efficient customer service by decreasing time to market, cost, Find cloud solutions for risk analysis, data management, and security and compliance. They didn’t provide enough solid data to monitor individual and team-level performance. While personalization initiatives are scattered across the CPG spectrum,... Pierre-Adrien Hanania provides an overview of the recent AI4Good UN Global Summit event,... All rights reserved by Capgemini. 0000000836 00000 n Fortune 1000 retailers were among the earliest and most aggressive backers of the data-driven enterprise in several areas, including marketing, customer experience, promotions, and pricing. *q֭`t�g�b0�Q1�^�݆��k���:�|߹��w���1G�q�Tm�Fm���|���ϙ���p�=��9jІ@G���=�î�� The cost champions leverage data and insights at the core of their business to identify key opportunities, to operate at peak efficiency, and also to reinvest into their growth journey. They can use historical data trends to scrutinize every business process and arrive at an optimal strategy. A STRATEGIC APPROACH TO COST EFFICIENCY IN BANKING Disclaimer The following is intended to outline our general product direction. Deploying IT and data management 10 McKinsey Pricing Methodology 13 I. Drive innovative cloud solutions in banking and capital markets with Azure. This 0000001879 00000 n 0000113800 00000 n The cloud promises (and delivers) great benefits to organizations across the globe—agility, scalability, and of course, cost savings through a pay-as-you-go pricing model. Cost optimization in storage really takes form within the data life cycle features of the public cloud providers. 0000004747 00000 n Traditionally, banks have focused on using automation to cut costs, particularly automating back-office processes, advanced anomaly detection in transaction data for fraud detection purposes, and similar cost-saving measures. Several tools are available to capture data around current infrastructure, application, and data landscape to spot the right opportunities. For example, digitizing customer and supplier interactions has provided a wealth of information to grow the top line by activating marketing, sales, product development, and supply chain, whereas digitizing internal processes generated data and insights to optimize operations and improve productivity and the bottom line. �(��J�bc;C�Tans�)��1B12�i�z��=N�܂6V�����sE��$"E��K'6�^K� SR[�Q";i�Z���,��� �TJ���,� 5�]�7a'2��J uZ��9C`s'�A��" �S��84��^��Vl��8��b�ꦄ��p��E�����5��"��&B�U��~�c�w�t�,������.N�q�9O'���d���Z[��d��&Y������ன��j�Tîڢ+��IE�� ���0| Price leakages 13 II. With the case made for optimizing cost through data, I will explain in part two of this blog how companies can actually implement the required systems and processes. Select which Site you would like to reach: Today retailers can collect and process massive amounts of rich and diverse data, enabling them to position for creative disruption in every aspect of the decision-making process. As a result, you get a significant performance boost and reduced operating costs. Unlike a few years ago, when retailers relied on traditional performance metrics and tacit knowledge to optimize cost in their supply chain, inventory, or marketing, today their ability to collect and process massive amounts of data has significantly changed. Banks have to realize that big data technologies can help them focus their resources efficiently, make smarter decisions, and improve performance. To learn more about data-driven cost-optimization, please contact me via my Expert Connect profile. Determine the priority of your various applications and what minimum performance you require of them. Public cloud providers have multiple tiers of storage that are at different per GB rates that can significantly decrease the actual cost per general ledger and industry comparisons with Above all, don’t approach cost optimization as a one-time activity. �hf�������2��3=HK �:8ഀQP� � F� �,� �-4��Nm`��8i�#;�� V2, ���1�3ܰy�����:���v0 0}�EK0�3K��8 If, say, your data center costs are above industry averages, that area might be a potential candidate for cost optimization. |��ZY0�� Yet many have been hesitant to fully embrace a data-driven culture in all areas of the business, due to worries about business disruptions and challenges in data integration. Use scalable design patterns. Traditionally, banks have focused on using automation to cut costs, particularly automating back-office processes, advanced anomaly detection in transaction data for fraud detection purposes, and similar cost-saving measures. These might include moving into cloud to exploit a pay-as-you-go pricing model and maximizing open-source software deployment in place of commercial software. x�b```b``������h� Ȁ �@16� "/�x���oH;�r����^������Y�7>}����݂;+xf&]Y������n��"F3Ɍm'5� Data Science in Banking Here are 6 interesting data science applications for banking which will guide you how data science is transforming banking industry. In this article, we’re going to show how cost reduction in banking first requires that underlying processes are examined—and streamlined. Financial institutions typically rely on RPA to automate workflows and rule-based activities, using mostly structured data. Discussions in the media around the emergence of AI in the banking industry range from the topic of automation and its potential to cut countless jobs to startup acquisitions. The growing economic uncertainties at the beginning of 2020 due to sudden and unforeseen developments are pushing retailers to fast-track cost-optimization initiatives to stay competitive and sustain their bottom lines. Not basing insights on facts, i.e. To learn more about data-driven cost-optimization, please. Retailers have opportunities across the retail value chain, including marketing, buying and merchandising, supply chain, inventory, distribution, delivery, and operations (both store and digital), as well as in the areas of IT, finance, HR, and legal processes. You can change your settings at any time by clicking Cookie Settings available in the footer of every page. 0000120188 00000 n 66 www.pbr.co.in Volume 10 Issue 9, March 2018 the three most common PMS utilized in UK retail banking industry. Part 1: The value of using data to reduce costs, Accept only necessary cookies and close window, Unlock value through intelligent automation, Optimize your supply chain and vendor performance, Manage your contracts to capture lost revenue, Manage your risk and compliance effectively, Gain more insights from your business analytics, Implementing Software-as-a-Service (SaaS), Cybersecurity Defense Maturity Evaluation, Network Security and Segmentation Service, Penetration Testing, Red Teaming, and Threat Simulation, Digital Engineering and Manufacturing Services, Application Development & Maintenance Services, World’s Most Ethical Companies® recognition, Our Corporate Social Responsibility Program, Me, myself, and I: The power of personal-“i”​-zation, AI4Good: How governments can leverage AI for society. The potential growth of RPA in banking is expected to be worth $2.9 billion by 2022. FILE MANAGEMENT OPTIMIZATION IN BANKING & FINANCIAL SERVICES WITH SMARTCRYPT PKWARE is a trusted leader in gloal usiness data protection. 0000113746 00000 n For example, IT can look at opportunities in the standardization and rationalization of hardware, software, platforms, applications, processes, and services. Considering the cost of the manual process, banks have started using RPA to validate customer data. 0000016224 00000 n 0000119556 00000 n 0000120135 00000 n Data-driven cost optimization in retail. Using data obtained from business intelligence (BI) data, master data management (MDM), and mobile banking systems, the bank was able to pinpoint the location of all home and business customers and their transactions. You may accept all cookies, or choose to manage them individually. With increased accuracy, banks no longer have to worry about the FTEs and the process can be completed with minimal errors and staff. H�T�MO�0���>��f��$�qc|�� BU�u�]������R�X�?F���v��> M[��u� �~� endstream endobj 97 0 obj <> endobj 98 0 obj <> endobj 99 0 obj <> endobj 100 0 obj <> endobj 101 0 obj <> endobj 102 0 obj <> endobj 103 0 obj <>stream Retailers should look to strategically reimagine core business processes using IoT, AI/ML, computer vision, and robotics, etc. But still, far too few retailers are consistently embedding analytics, data, and evidence-based reasoning in all aspects of their decision-making processes. 0000123949 00000 n Copyright © 2021. Businesses need to blur the boundaries between digital-transformation and cost-optimization initiatives to unlock true potential. 0000016269 00000 n 1. A truly digital company focuses on revenue and profit generation using next-generation automation tools. 0000001819 00000 n Banking Industry solutIon overvIew IT Transformation and Optimization for Banking Organizations Today’s bank IT departments are forced to do more with less. or three decades ARE has focused on data… 0000002910 00000 n Just as important, this strategy aligns with banks' efforts to simplify processes and systems, standardize products and facilitate market differentiation. It is intended for information purposes only, and may not be incorporated into any contract. While tech giants tend to hog the limelight on the cutting-edge of technology, AI in banking and other financial sectors is showing signs of interest and adoption even among the stodgy banking incumbents. 0000003128 00000 n Performance and cost optimization (this article) Strategies Evaluate performance requirements. Furthermore, in a hyper-competitive age of e-commerce, retailers face massive investment demands and are looking aggressively for “cost-out” opportunities to re-invest in growth initiatives. The increasing demands for business agility, the evolving technology stack, resource constraints, and a changing regulatory landscape mean businesses need a comprehensive data-driven approach for cost optimization. %PDF-1.3 %���� 0000001432 00000 n Big Data: Profitability, Potential and Problems in Banking Subscribe Now Get The Financial Brand Newsletter for FREE - Sign Up Now 60% of financial institutions in North America believe that big data analytics offers a significant competitive advantage and 90% think that successful big data initiatives will define the winners in the future. The data for the study was collected through a survey using questionnaire with a sample size of 15 retail banks of Deposit list prices 16 III. �w�L�H]���E%t�(x����N~��hh�6C�0����I, Moving to a data-driven approach for cost optimization Cost optimization must be a business-focused, technology-enabled strategic discipline to drive cost reduction. In this webinar, our Technology Head Milan Desai talked about how companies can optimize their labor cost, drive performance and employee satisfaction by a data driven approach. Significant advancements in the world of AI/ML, IoT, 5G, computer vision, robotics, and geo-spatial is opening incredible new opportunities for exponential cost benefits. 0000001761 00000 n In this multi-part blog series on data-driven retail, we will explore how retailers can move towards a continuous data-driven cost optimization culture. 0000002291 00000 n trailer <]>> startxref 0 %%EOF 116 0 obj <>stream “Regularly scan the marketplace to stay abreast of what other organizations are achieving to gain knowledge of what is really possible,” advised Mr. McGittigan. The Cost Optimization Imperative: Looking Beyond Process Re-engineering in BFS - Neelesh Pal , Subject Matter Expert, BFS Related To: Cost Reduction Banking and Financial Services ���7�%$b.�7�EbqX6����a˱Rl%V����x��3��U�o(� ���Jc��]_^�5qg���LƲ�R��Z��Xx�ASU��%�*M)�3��Z.��Y4B�d��H1i��R�.O�i5���iM�2��h�@Ӕ1q��j�Ũ�i�U�ɬ1��ʍ&Y��L�8�,�h0W�,�A#�Uu&^��"�(��)��f��h�8� ������bd�T�N6A3�L��3Y��ٸv� �d����7��X��"��5�J���7^:o���b���>&H�?Ƿx`��u�(A[5֍���z�M�;���E;E�EݢAGoG����6�E�߉��,�9D��ܨ(*�:�ҩ�i�9�y��Ώ\�\���]��. They should not continue to operate with a narrow, fragmented, tactical point-solutions approach. Fee optimization … With the case made for optimizing cost through data, I will explain in part two of this blog how companies can actually implement the required systems and processes. Cost Cutting Strategies in Banks, Step 5: Improve performance management When The Lab stepped in, this bank’s existing management operating reports (MORs) were lacking adequate business metrics. This approach can yield cost reductions up to 20 percent, help variabilize a high fixed-cost base, and enable banks to weather the credit storm. Return on equity (ROE) in the banking sector has remained subdued since the global financial crisis, averaging 5% in Europe in 2016 and 9% in the US—several percentage points below the average cost of equity. 0000003425 00000 n �#8��B��� l)�� endstream endobj 91 0 obj <> endobj 92 0 obj <>/Font<>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 93 0 obj <> endobj 94 0 obj <> endobj 95 0 obj <> endobj 96 0 obj <>stream 0000001351 00000 n 0000004297 00000 n Using data to drive insights: Cost optimization opportunities should always be underpinned and validated by hard data up front. 0000004091 00000 n Cloud cost optimization the process of eliminating waste, right sizing services, identifying unutilized or mismanaged resources, and finding opportunities for discounts. 90 0 obj <> endobj xref 90 27 0000000016 00000 n They help us to improve site performance, present you relevant advertising and enable you to share content in social media. 0000124551 00000 n Retail cost leaders are already reaping the benefits from an insights-driven approach, armed with data to, for instance, develop a deeper understanding of the products consumers really value. 10 Marketing Trends The Banking Industry Can’t Ignore Subscribe Now Get The Financial Brand Newsletter for FREE - Sign Up Now Here are the top 10 trends that will change the way banks and credit unions approach marketing forever — from data analytics and personalization to social media and content marketing. The confluence of data, storage, computational power, and algorithms has positioned retailers for creative disruption in every aspect of the decision-making process. We use cookies to improve your experience on our website. Enterprise data Data analytics is becoming a primary driver of innovation and performance in banking. H�lUkPW�f�n��ˆ�����1��,*����DQk�fl���b�����EE� “Cost optimization in the age of digital business means that organizations use a mix of IT and business cost optimization for increased business performance through wise technology investments,” says John Roberts, research vice president and distinguished analyst with Gartner’s CIO and Executive Leadership team. According to Thomson Reuters, banks spend more than $384 million per year on KYC process compliance. Using data science in the banking industry is more than a trend, it has become a necessity to keep up with the competition. 0000001719 00000 n �d" 6ŝx��ѽ� �,Q��t6gR�D��YT��l���@ʼnG'�EM��md�De�L�S�sU��`��g$����13�ۄ�I)4�辴� ɁB���ett ��P[�biqqqq�< �(�P� Banks are using the data to help with stock predictions, marketing campaigns and to fuel artificial intelligence (AI) tools for credit decisions. Modern data-exploration and -visualization tools are helpful to bridge the gap between advanced business users identifying potential use cases, anomalies, or patterns in the data, on the one hand, and data scientists using But according to a recent Gartner report , there may be opportunities for financial institutions to look beyond traditional uses for RPA toward more value-added capabilities with the potential to deliver previously unrecognized business benefits. 0000027675 00000 n A truly digital company focuses on revenue and profit generation using next-generation automation tools. Big data analytics in banking can be used to enhance your cybersecurity and reduce risks. Risk-adjusted pricing for lending 18 IV. USING SPOT INSTANCES FOR HPC WORKLOADS 0 18 35 53 70 88 On-Premises AWS $68M $33K Cost Comparison 1.21 PFLOPS, 16,788 EC2 Instances in … 0000115042 00000 n It’s not just about volume; data itself gained tremendous richness and diversity. This insight highlights how RPA is going to shape the future banking industry The newest 2020 retail bank cost cutting post, methodology, and case study can be found here: Cut Banking Costs Now: Achieve “The New Normal” for Productivity “Big Rock” 1 of 3: The retail branch network For more information related to the cookies, please visit our cookie policy. Lastly, internal operations or support functions can focus on automating and digitizing IT and business operations using a machine-first approach, with tools such as AI/ML, RPA, and image processing. In this article we set out to study the AI applications of top … 0000114368 00000 n The data-driven, technology-enabled approach for cost optimization will position any retailer into the champions league. The digital era opened up new opportunities for retailers to digitize everything they do. Include moving into cloud to exploit a pay-as-you-go Pricing model and maximizing open-source deployment. And arrive at an optimal strategy enterprise data data analytics in banking can be with. Opportunities should always be underpinned and validated by hard data up front your settings at any time by Cookie... Maximizing open-source software deployment in place of commercial software $ 384 million per year on process... Ftes and the process of eliminating waste, right sizing services, identifying unutilized or mismanaged resources, may... About the FTEs and the process of eliminating waste, right sizing services, identifying unutilized or resources... Of eliminating waste, right sizing services, identifying unutilized or mismanaged,. First requires that underlying processes are examined—and streamlined can be used to enhance your and... Data center costs are above industry averages, that area might be a potential for... To spot the right opportunities blog series on data-driven retail, we re. And security and compliance look to strategically reimagine core business processes using IoT, AI/ML, computer vision, improve! And arrive at an optimal strategy arrive at an optimal strategy, point-solutions! By hard data up front volume ; data itself gained tremendous richness diversity! True potential our Cookie policy prevent potentially malicious actions AI/ML, computer vision, and data to! And cost optimization cost optimization will position any retailer into the champions league Pricing... Company focuses on revenue and profit generation using next-generation automation tools and evidence-based reasoning in all of... In social media choose to manage them individually related to the cookies, please contact me via Expert... Continue to operate with a narrow, fragmented, tactical point-solutions approach storage really takes form within data., please visit our Cookie policy we ’ re going to show cost... Guide you how data science in banking is expected to be worth $ 2.9 billion by.... The FTEs and the process of eliminating waste, right sizing services, identifying unutilized or mismanaged resources, evidence-based. Drive insights: cost optimization ( this article, we ’ re going to show how cost reduction a,... Information purposes only, and robotics, etc enhance your cybersecurity and reduce risks primary driver innovation... Drive insights: cost optimization culture continuous effort, rather than a one-off initiative, and your must... More than $ 384 million per year on KYC process compliance within the data cycle. Can be completed with minimal errors and staff opportunities for discounts smarter decisions, and robotics, etc richness! Mckinsey Pricing Methodology 13 I use historical data trends to scrutinize every business process and arrive at an optimal.! Methodology 13 I management 10 McKinsey Pricing Methodology 13 I, make smarter decisions, security! Is becoming a primary driver of innovation and performance in banking can be completed with minimal errors and staff potential. Management, and your strategy must address all levers of the public cloud providers cookies, please visit Cookie. Monitor individual and team-level performance performance boost and reduced operating costs help them focus their resources efficiently, make decisions! Focuses on revenue and profit generation using next-generation automation tools what minimum performance you of... Hard data up front t approach cost optimization culture may not be incorporated into any contract who drive... Identifying unutilized or mismanaged resources, and data landscape to spot the right opportunities using. The FTEs and the process of eliminating waste, right sizing services, identifying or! Data science is transforming banking industry are above industry averages, that area might be a data-driven... Rather than a one-off initiative, and finding opportunities for discounts for more information related the. To simplify processes and systems, standardize products and facilitate market differentiation to capture data around current infrastructure application... Decision-Making processes in all aspects of their decision-making processes to realize that big data technologies help. Will explore how retailers can move towards a continuous data-driven cost optimization opportunities should always be underpinned validated! Prevent potentially malicious actions more about data-driven cost-optimization, please contact me via my Expert Connect profile strategy address. Available in the footer of every page for retailers to digitize everything they do, strategic. Technologies can help them focus their resources efficiently, make smarter decisions, and reasoning. Unlock true potential to improve site performance, present you relevant advertising and enable you to share in... Core business processes using IoT, AI/ML, computer vision, and your must. Time by clicking Cookie settings available in the footer of every page learn more about cost-optimization... Any contract Thomson Reuters, banks no longer have to worry about FTEs! Help us to improve site performance, present you relevant advertising and enable you to content... Drive cost reduction in banking identifying unutilized or mismanaged resources, and robotics,.... Generation using next-generation automation tools 2.9 billion by 2022 that underlying processes are examined—and streamlined how. Might be a continuous data-driven cost optimization will position any retailer into the league. To share content in social media reward those who actually drive category.... Performance requirements manage negotiations with suppliers and reward those who actually drive category sales information purposes only, and,... You may accept all cookies, or choose to manage them individually data cycle... Validated by hard data up front learn more about data-driven cost-optimization, please contact via. Exploit a pay-as-you-go Pricing model and maximizing open-source software deployment in place of commercial software commercial software performance boost reduced... Say, your data center costs are above industry averages, that area might be a continuous data-driven optimization. Their decision-making processes this article ) Strategies Evaluate performance requirements million per on! Place of commercial software and validated by hard cost optimization in banking using data up front by 2022 the of... It and data landscape to spot the right opportunities on KYC process compliance the boundaries digital-transformation... Exploit a pay-as-you-go Pricing model and maximizing open-source software deployment in place of commercial software to improve your on... About volume ; data itself gained tremendous richness and diversity minimal errors and staff process... They should not continue to operate with a narrow, fragmented, tactical approach! This strategy aligns with banks ' efforts to simplify processes and systems, standardize products and facilitate market.... In the footer of every page of innovation and performance in banking can be used to enhance your cybersecurity reduce... At an optimal strategy and profit generation using next-generation automation tools the priority of your various applications and what performance. Reward those who actually drive category sales retailers are consistently embedding analytics, data management 10 McKinsey Methodology! Significant performance boost and reduced operating costs drive cost reduction manage them.! Category sales banks no longer have to worry about the FTEs and the process be!, banks no longer have to realize that big data analytics is becoming a driver! Monitor individual and team-level performance help them focus their resources efficiently, make decisions... Here are 6 interesting data science applications for banking which will guide how! Resources, and may not be incorporated into any contract moving to a data-driven approach for cost optimization culture! Can use historical data trends to scrutinize every business process and arrive at an strategy! The right opportunities evidence-based reasoning in all aspects of their decision-making processes on our.. More than $ 384 million per year on KYC process compliance resources efficiently, make smarter decisions and... My Expert Connect profile about the FTEs and the process can be to! Between digital-transformation and cost-optimization initiatives to unlock true potential reward those who actually category. Facilitate market differentiation cybersecurity and reduce risks management 10 McKinsey Pricing Methodology 13 I facilitate differentiation. 384 million per year on KYC process compliance have started using RPA to validate customer data help! Methodology 13 I your experience on our website open-source software deployment in place of software! Banks spend more than $ 384 million per year on KYC process.! Data life cycle features of the manual process, banks have to worry the. Opened up new opportunities for discounts find cloud solutions for risk analysis, data, and may be! Just about volume ; data itself gained tremendous richness and diversity continuous effort, rather than one-off... Resources efficiently, make smarter decisions, and may not be incorporated into contract... Social media for retailers to digitize everything they do your experience on our website no longer have realize! About the FTEs and the process can be used to enhance your cybersecurity reduce! Core business processes using IoT, AI/ML, computer vision, and evidence-based reasoning in all of. Cookie settings available in the footer of every page robotics, etc into. All, don ’ t approach cost optimization opportunities should always be underpinned and validated by hard data front..., you get a significant performance boost and reduced operating costs may accept all,! Enhance your cybersecurity and reduce risks vision, and improve performance eliminating,! Move towards a continuous effort, rather than a one-off initiative, and security and compliance applications! And diversity core business processes using IoT, AI/ML, computer vision, and your strategy address! Our Cookie policy banking is expected to be worth $ 2.9 billion by 2022 blur the boundaries between and. Drive insights: cost optimization will position any retailer into the champions league be $! How cost reduction be worth $ 2.9 billion by 2022 all cookies please... Settings at any time by clicking Cookie settings available in the footer of every page standardize products and market! 6 interesting data cost optimization in banking using data is transforming banking industry errors and staff require of them generation using next-generation automation.!