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      Operational and cost transformation is at the top of the agenda for banks navigating a complex landscape of economic pressure, rising competition, and rapidly evolving customer expectations. With tighter margins and increasing regulatory demands, banks are turning to digital technologies, automation and AI to streamline operations, reduce costs, and enhance service delivery. Yet many banks struggle to deliver on their transformation objectives. Just 18% of banks have been highly successful in achieving their transformation goals.

      Banking transformation: The new agenda, explains why and — more importantly — how leading banks are achieving success.

      Based on a recent survey of 228 banking leaders globally and supported by insights from KPMG’s global network of banking professionals, this report combines data, experience and insights to provide bank leaders and decision-makers with a clear and value-driven view of success.

      Banking transformation: The new agenda

      Explore how leading banks are approaching operational and cost transformation initiatives.

      Download the report today

      Key findings

      53% of respondents expect to cut costs by at least 10% by 2030

      Anticipated cost savings are significant for banks.

      Only 24% have been successful in achieving cost reduction goals

      Successful transformation has been challenging.

      Just 40% consider themselves well-positioned to implement change management or lead transformation initiatives

      Not all banks are ready for change

      What are the most successful banks doing differently to achieve transformative outcomes?

      Our research points to a number of key differentiators:

      • They have clearly defined cost objectives

        Banks demonstrating successful transformation initiatives set specific, measurable cost goals that align with their broader business strategy.

      • Their cost and transformation objectives are ‘fully aligned’

        These organizations ensure that cost-saving efforts support — not hinder — their innovation and modernization agendas. 

      • They have allocated substantial budgets

        Business leaders allocate sufficient resources to ensure transformation initiatives are well-funded and sustainable.

      • They have made leadership accountable

        Executive teams are directly responsible for delivering results, fostering a culture of ownership and performance. 

      Five key takeaways

      • Know what you want to achieve

        Rather than focusing on siloed cost and transformation initiatives, start by understanding who you want to serve, how you want to serve them and what products and services they will need.

      • Create alignment between transformation and cost

        Be clear about your cost and transformation objectives and help the organization understand the link between operations and efficiency.

      • Understand the levers of value

        While technology can enable and unlock efficiency and simplification, consider all of your routes to transformation.

      • Drive successful definition and execution across the enterprise

        Whether or not your approach to transformation is centralized, make sure you have a hand in driving results, setting and holding leaders and people accountable, and maintaining visibility to the execution and success of various programs across the change agenda.

      • Tap into tested experience

        Look for support from experienced professionals who can bring tested methodologies and approaches to the table, particularly when seeking to apply new technologies such as generative AI.

      Contact us

      Please reach out if you would like to hear more about how we can help your company.

      Learn more about our services
      Hans Jørgen Andresen
      Hans Jørgen Andresen

      Partner, Advisory

      KPMG in Denmark

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