The pressures on capital adequacy, consumer protection and operational risk are forcing banks to be ever more efficient. With balance sheets shrinking and pressures on revenue growth increasing, cost/income ratio targets are far more aggressive now than prior to the financial crisis. The pressures on IT budgets have become more obvious and new models for computing are emerging.
With intensified competition and new entrants to the market, rigorous standardization is essential to transform the cost base. Legacy systems are absorbing as much as ¾ (or more) of IT budgets leaving little for transformation and innovation; Many banks have objectives to reduce applications by as much as 35%, cut operating costs by 40%, and reduce infrastructure costs by 25%.
Three pronged approach to improving efficiency:
- Simplify technology spend
- Shift to next gen infrastructure
- Attain a critical view of operations
CSC can modernize bank IT applications and infrastructure based on its experience developing large-scale systems integration solutions, industry leading modernization technologies and industry changing partnerships. Banks can significantly reduce the total cost of ownership and improve agility by changing their service mix to cloud-enabled SaaS and managed services;