Many financial services organisations have found that their attempts to cut costs and improve efficiency in the wake of the financial crisis have been far less successful than hoped and are already proving difficult to sustain. There is a particular risk that knee-jerk operational shake-ups could damage customer service or jettison the talent the business needs to capitalise on an upturn.
Smart firms are therefore looking at how to use the crisis as an opportunity to re-engineer their business in a way that can deliver lasting savings and sustainable improvements in operational efficiency. This includes realising potential synergies through the development of product ‘hubs’ and greater use of centralised service centres and other sourcing options. Further improvements could be achieved through a more aggressive approach to product rationalisation, reducing needless management layers and identifying opportunities for integration and consolidation in areas such as reconciliation. Streamlining and simplification can not only cut costs, but also strengthen management control and oversight, as well as support and secure operationally organic and external growth, whether domestically or internationally.
With their firm-wide view of value chains processes cost, risk and profitability, the finance and operations functions to jointly identify opportunities for savings, operational improvements and developing strong, realistic, and executable business cases.
Giving you the edge
PwC has a team of dedicated financial services cost management and performance improvement experts who can help your organisation to gain the edge in efficiency and cost competitive delivery, namely:
- Process architecture and optimization, operational transformation of finance, IT, HR, and operation functions in banking and insurance business lines, as well as corporate levels
- Cost cutting and cost optimization
- Employee benefits and compensation programmes
- Global supply chain optimisation and management, including set up of SSC, outsourcing, and off-shoring
- Downsizings and carve-outs
PwC has a global network of specialists who can help insurers to strengthen their businesses in key areas: