To maintain profitability, banks must get ready to monitor many more people-costs, as well as external expenditure, which accounts for between 32% and 49% of all operating costs. Our experience, suggests that combining the right strategies and techniques can reap substantial value. The case study attached here outlines how we helped a regional mid-size bank to upgrade of their procurement and vendor management, reducing external expenditure by 15% and procurement organizational costs by 20% in just six months.
Banks in the Middle East have long outperformed international benchmarks, supported by strong growth, high profit margins and competitive operating costs. But the recent economic downturn has put revenues under pressure and experts expect risk-associated costs to materialize in the near future.