Significant benefits of accelerated digitization of services and features available today banks. in depth digital transformation can lead the financial sector to operating cost savings ranging from 20% to 40% in selected processes (including personnel costs). This is documented in the latest study by the Boston Consulting Group (BCG). financial institutions today can use four basic defenses to not only survive in high pressure due to inflationbut also to ensure their operational excellence, as well as the organic creation of new funds in this new reality.

These pillars are the simplification of processes and organizations using methods such as zero-base budgeting, accelerated digitization of customer and employee interfaces and IT infrastructure, flexible service delivery models, and efficient vendor management.

According to a Boston Consulting Group report, financial institutions are once again facing a period of instability and major challenges.

The text also notes that while banks have gone through a period of improved profitability due to strong interest ratesthe coming months are forecast to bring new challenges as recent trends are expected to reverse. “Financial institutions again faced a period of volatility and serious problems, as evidenced by the bankruptcy Bank of Silicon Valley and the spread of problems European market with a liquidity crisis in Credit Suisse“, – the authors of the corresponding report comment. They also come to the conclusion that the new reality creates opportunities for banks to use a new arsenal, benefiting from modern digital trends. Trends associated with the changing nature of globalization, the improvement of artificial intelligence (AI), changing employee expectations regarding hybrid operating models and opportunities to influence the supply chain, which can reduce costs, by introducing subcontracting or subcontracting models in close proximity.Finally, the authors of the report find that over the past ten years, the low interest rate regime has put constant pressure on profit margins, in as a result, many banks have gradually slowed down their digital transformation efforts, preceded by a constant struggle to reduce costs.