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Mutual banks are facing challenges to performance


The mutuals have unique challenges that set them apart from other banks. In the current operating environment with low interest margins and high costs, the main strategic areas which particularly challenge the sector are:

  • Maintaining financial performance and resilience.
  • Finding sustainable growth pathways which build member value.
  • Responding to transformative shifts in the financial system.


How should the mutual banks respond to these issues?

Efficiency is key to delivering member value and resilience for the mutuals. Mutual banks need to demonstrate cost discipline and an ability to transform operations.

Mutuals can take 4 actions to effectively respond through transformation:

  1. Address the cost base with a focus on member value.
  2. Adopt a programmatic approach to cost transformation; piecemeal can erode value.
  3. Drive for simplification.
  4. Invest wisely and follow-through on realising benefits from investment.

KPMG's blueprint

KPMG Connected Enterprise is our approach for enabling customer-centric, digital transformation that meets the demands that mutual banks are facing. The KPMG Connected Enterprise framework is built on a foundation of eight integrated capabilities that help banks meet customer expectations, create business value and drive sustainable growth. Our research shows that mature banks investing in all eight capabilities are twice as likely to achieve success compared to their less mature peers.

Take our free diagnostic assessment and benchmark your organisation against global best practice. You will receive an immediate comparison of your responses relative to industry benchmarks across the eight key capabilities.

If you would like to discuss the results please feel free to reach out to KPMG.

Technology in the mutuals sector

Due in part to their ownership structure and their scale, the ability of mutual banks to invest significantly in technology transformation is limited.

Mutuals should assess their core competencies and future priorities when considering technology investments. This evaluation will provide clarity on whether buying, building in-house or partnering to source technology capabilities is the right approach to support their business transformation.

Mutual banks need to ensure the technology strategy supports the business strategy and not the other way around.

How KPMG can help

We can help you harness technology to build a connected enterprise. An enterprise that enables you to respond quickly to market challenges and pivot to seize opportunities as they arise.

If you have any questions about strategy, transformation, technology or would like to find out more about the KPMG Connected Enterprise framework, please contact a member of our dedicated mutuals team.



Meet the mutuals team



Further information