Operating Expense Reduction For Banks and Financial Institutions
Decentralized structures due to mergers and acquisitions as well as under investment in procurement expertise due to historically higher industry margins has banks facing organizational and capability challenges with regards to reducing operating costs
High write-downs, liquidity pressures, and tighter credit standards are encouraging banks and financial institutions to concentrate on internal cost savings. Banks and financial institutions have already slimmed down their headcounts and are looking for non-compensatory cost cutting strategies.
Banks and financial institutions utilize Source One’s subject matter expertise in relevant indirect categories to drive savings and improve efficiency while encouraging high performance.
Utilizing a proven strategic sourcing process and subject-matter expertise, Source One helps banks and financial institutions reduce non-compensation expenses and improve infrastructures. An initial spend analysis provides an overall view of where spend is allocated and Source One provides customized procurement solutions to meet organizational needs. Transitioning tactical buying practices to longer-term strategic cost initiatives leaves banks and financial institutions better able to renew current and future high performance standards.
Common categories of operating expenses that banks and financial institutions find significant savings under the guidance of Source One include:
- Professional services (temporary workers, legal advisory, management consultancy)
- IT Services and Software
- Facilities Maintenance
- Sales and Marketing
- Office Supplies and Equipment
- Security Services
- Governance, Risk and Supplier Management
Banks and financial institutions are finding that traditional cost cutting methods aren’t producing the results needed to meet current business goals. Source One can help banks not only cut costs, but cut the right costs. Our procurement transformation services not only enhance strategic sourcing practices from data collection through to implementation and ongoing monitoring, but we also present procurement transformation solutions including vendor consolidation, change management, and electronic enablement.
Helping Banks Cut Costs
Supplier Management for Banks
Banks are under increasing pressure to be compliant with new regulations and bulletins as they relate to first and second-tier supply chain partners. Our SRM experts can help your bank with its Governance and Risk Compliance through our Supplier Relationship Management programs.
SRM for Banks
Disparate Business Units
Source One helps breakdown silos formed as a result of mergers, acquisitions, and restructurings by encouraging executive-level buy-in and interactive stakeholder involvement. Our team works in tandem with banks and financial institutions to learn internal processes and structures and adapt our processes to successfully implement savings initiatives.
Having worked with hundreds of corporate clients, each with their own corporate cultures and attitudes, Source One is fully prepared to help procurement and financial executives address internal roadblocks. Our team is sensitive to the concerns of internal personnel and works alongside banks and financial institutions to implement initiatives that are aligned with corporate operations and help to manage changes.
By examining the anatomy of each individual banking and financial institution, Source One enables organizations to identify “low hanging fruit” that can produce quick cost reduction solutions and help free-up investment capital to tackle structural cost reduction initiatives that have longer sustainable benefits.
See what we can do with Professional Services.
Source One’s solutions for professional services agreements can include a review of T&Cs, non-disclosure clauses, and subcontracting clauses while also reviewing/developing statements of work (SOW), performing analysis like vendor scorecarding and performance metrics, and performing market research to better develop actionable strategies for the management and organizational improvement of a contingent workforce.
Professional Services Negotiations