Aligning managed services and banking stability
While banks have benefited from high interest rates in recent years, those rates are expected to decrease while costs continue to climb. As a result, banks worldwide have ambitious savings targets.
According to KPMG International, some are targeting 20 percent to 30 percent over the next two years[1]. And in the US, more than half say their profitability will grow through cost transformation[2].
However, an overfocus on cost could risk underinvestment in key functions contributing to growth. A better approach is to carefully balance cost reduction with value management — by digitizing operations, reducing labor costs, and designing new operating models that get more value from business processes.
In this type of outsourcing, as an essential lever for increasing profitability, leading providers combine advanced technology, domain expertise, and strategic collaboration to deliver knowledge-intensive processes on an as-a-service basis.
Offering predictable costs without prohibitive upfront investments, managed services can help banks tap both savings and value in areas such as:
Access to emerging tech
Generative AI can play a critical role in banking operations, whether it’s responding more quickly to compliance needs, diagnosing IT problems, or continually detecting threats and vulnerabilities. However, the required investment is holding many organizations back.
For some key business processes, such as cybersecurity or IT service management, managed services can be a cost-effective way for banks to use providers’ technology instead of building their own.
For some key business processes, such as cybersecurity or IT service management, managed services can be a cost-effective way for banks to use providers’ technology instead of building their own.
Balancing cost and value management is a strategic capability for banks, supporting daily operations and the long-term outlook. For many organizations, managed services are becoming a key consideration.
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