Approaches to cost optimisation in banks: allocating resources effectively, managing them more efficiently

Capital and funding costs have a significant impact on banks’ profitability, yet they are often managed with insufficient granularity, too late, or inconsistently. Our English-language publication, ‘Leveling Up Financial Steering with Enhanced Cost Allocation’, demonstrates how institutions can allocate these costs systematically, transparently and proactively. This creates a robust foundation for pricing, portfolio decisions and balance sheet management.

• Forward-looking management rather than hindsight: costs relating to liquidity and capital are presented in a way that takes future developments into account and feeds directly into current decisions.
• Greater depth of detail in allocation: a more precise allocation of capital costs reveals which business activities actually create value and where inefficiencies lie.
• Robust data and IT structures: Rapid, traceable analyses make it possible to understand and contextualise cost implications in a timely manner.
• End-to-end transparency: A consistent view of all cost categories improves management and builds confidence in the underlying figures.
• Clear responsibilities in management: Centralised coordination ensures that capital and liquidity are deployed consistently and in line with the strategy.

You will learn exactly how to develop your cost management into an effective tool for better decision-making, thereby sustainably strengthening your profitability, stability and competitiveness.