Strategic cost-cutting for a Top-3 Russian bank

Project goals

Sustainable cost-cutting in the next 1-3 years without prejudice to bank’s business and customer service quality

Project objectives

  • Shaping the initiatives to cut costs including quick wins
  • Calculation of effects and payback period of the initiatives
  • Initiatives implementation plan

Approach to the project

  • Benchmarking of bank’s indicators with comparable banks (Russian and foreign ones), as well as internal benchmarking, identification of areas for costs optimization
  • Detailed analysis of areas with the greatest potential for cost-cutting
  • Shaping a list of practical initiatives to cut bank’s costs, including quick wins
  • Development of implementation plan with indication of responsible persons and KPIs
  • Business case calculations to identify the impact of proposed initiatives on financial performance

Key areas of cost-cutting initiatives

  • Performance improvement including through standardization, optimization of functions/processes
  • Use of outsourcing/civil law contracts
  • Optimization of the span of control
  • Efficiency improvement of expenses related to IT, estate management and transport
  • Introduction of “quick automation” measures, including robotic automation

 

Project deliverables

1. Identification of the potential for operating cost-cutting, %
3. Dynamics of bank’s staff number before and after project implementation, FTE
2. Dynamics of expenses share in bank’s income before and after project implementation, %