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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 per cent of banks have been highly successful in achieving their transformation goals.1

      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

      Notable findings

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

      Anticipated cost savings are significant for banks.

      Only 24 per cent have been successful in achieving cost reduction goals

      Successful transformation has been challenging.

      Just 40 per cent 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 organisations ensure that cost-saving efforts support - not hinder - their innovation and modernisation 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

      Banks are at a pivotal moment. The pace of change in technology, regulation, and customer behavior demands a bold and strategic response. The report sets out a new agenda for transformation-one that places trust, innovation, and agility at the heart of banking’s future. We believe that those who embrace this agenda will not only survive but thrive in the next era of financial services.
      Hemant Jhajhria

      Head of Consulting

      KPMG in India

      Hemant Jhajhria

      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 organisation 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 centralised, 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

      How can KPMG in India help

      At KPMG we believe transformation starts with people. Our global network of experienced banking professionals provides clients with deep industry knowledge, actionable insights and implementation expertise, helping to realise the full potential of their people and technology, and working together to achieve successful transformation. Because when people and technology are in harmony great things happen.

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      Key Contact

      Hemant Jhajhria
      Hemant Jhajhria

      Partner, Head of Consulting

      KPMG in India

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