Financial institutions can't grow their way out of their problems any more. In response, leaders are rethinking the way they manage costs.
PwC discusses the importance of expense management in the financial services industry
The current economic environment in the United States and around the world is challenging for banks and business alike. Given the macroeconomic forecast, financial institutions can no longer grow their way out of their problems. Business areas that traditionally provided revenue growth for financial institutions are not growing sufficiently to overcome new capital and regulatory requirements, and activity levels of several major financial sector businesses are flat or declining.
Increased regulation and capital requirements along with limited revenue leverage will require business-model changes boost profitability. Leading institutions are implementing continuous expense management programs to extract value from business-model changes by focusing on efficiency through each key step in the budgeting and reporting systems.