Firmwide / Technology & Operations Benchmarking

Technology & Operations Benchmarking

Technology is becoming a critical competitive lever for financial institutions, with global bank spend projected to reach $600bn by 2028. BCG Expand supports this transformation through industry-leading benchmarking of Technology and Operations cost, effectiveness, and resourcing. Alongside tech insights, our Operations benchmarking enables institutions to simplify processes, improve productivity, and build more resilient and scalable operating models.

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The Challenge

  • ✔Over 60% of total Technology spend remains tied to Run-the-Bank activities, limiting investment in innovation
  • ✔Excessive RTB expenditure slows automation, digital enablement, and modernisation
  • ✔Legacy infrastructure inflates costs, hinders scalability, and reduces agility
  • ✔Fragmented application estates drive orchestration inefficiencies and poor end-to-end visibility
  • ✔Read more here

How we can help

Cost Diagnostics

We perform full cost analysis by business, cost type, and driver, supported by raw data captured directly from client MIS systems for accuracy and speed.

Application Landscape

Evaluation of the application estate (on-site vs cloud hosting, average application age, utilisation patterns) to identify consolidation and modernisation opportunities. Legacy infrastructure and fragmented application stacks are benchmarked against peers to highlight rationalisation opportunities and areas for improved agility.

Infrastructure

Analysis of cost per unit across servers, storage, and end-user technology, plus assessment of server distribution and utilisation. Estate-rationalisation insights inform cloud adoption decisions and vendor optimisation to reduce infrastructure expenditure by 15–25%.

Client success stories

$1bn+ cost efficiencies identified through optimisation of Change-the-Bank versus Run-the-Bank spend
15–25% reduction in infrastructure costs via estate rationalisation and vendor consolidation.
10–20% faster delivery cycles driven by automation and cloud adoption.
EUR 1.4B IT overspend uncovered across all lines of business relative to peers, revealing significant optimization potential

Case Studies

Tier 1 Investment Bank

A Tier-1 Investment Bank rebalanced Change-the-Bank versus Run-the-Bank expenditure, identifying over $1 billion in cost-efficiency opportunities. The savings were redirected into automation and resilience initiatives, delivering measurable long-term value.

Global Markets Institution

20% reduction in infrastructure spend through estate rationalisation and vendor consolidation.

Tier 1 European Universal Bank

Identified a 43% IT overspend and revealed excessive investment in legacy applications and vendor-dependent systems, enabling the bank to redesign sourcing, streamline its application estate, and align spend with industry benchmarks

The Challenge

  • ✔Excessive Run-the-Bank expenditure and manual processes limit profitability and slow transformation
  • ✔High duplication across front-, middle-, and back-office processes inflates operational cost
  • ✔Limited transparency of total cost of ownership (TCO) obscures true cost drivers
  • ✔Inefficient workflows and manual interventions result in higher error rates and operational losses

How we can help

Cost Diagnostics

We conduct full cost analysis by business line, subfunction, and cost driver to identify structural inefficiencies and prioritise actionable cost-reduction opportunities.

Process Efficiency Benchmarking

We benchmark Run-the-Bank versus Change-the-Bank spend to identify automation opportunities and streamline operational complexity.

Front-to-Back Process Optimisation

We review end-to-end processes across front, middle, and back office to eliminate duplication, streamline handoffs, and reduce the overall cost-to-serve.

Client success stories

$500M+ operations cost savings uncovered through peer-scaled benchmarking and process simplification.
20% Productivity uplift achieved by redesigning operations structures to improve workflow efficiency and team effectiveness
~5pp improvement in cost-to-income ratio (CIR) through elimination of duplication and improved process control.
1-5 management layers removed streamlining operating models and eliminating duplication across front-to-back functions

Case Studies

Regional Universal Bank

Benchmarking revealed ~$250m in addressable operations-cost savings and a 5-point CIR improvement, forming the foundation for an enterprise-wide efficiency programme.

Global Universal Bank

The bank streamlined front-to-back processes based on benchmarking insights, improving workflow visibility and enhancing operational control across global service lines.

Tier 1 Investment Bank

Doubled Operations IT investment into its CIB platform after benchmarking revealed project spend had peers for several years, accelerating delivery of automation and system-integration upgrades

Insights

Tech in Banking 2025: Transformation Starts with Smarter Tech Investment

Banks are investing more in tech than ever. With smarter spending and simplification, they can unlock innovation, resilience, and lasting competitive edge.

Read the report

"BCG Expand's benchmarking gave us clarity on where to focus our strategy. The insights into global wealth segments helped refine our priorities and uncover high-potential markets."

Head of Strategy Global Financial Services Firm

"The analysis provied the confidence to invest in modernising our legacy technology, even in a cost-cutting environment. It's delivered long-term savings and far greater transparency.”

Chief Operating Office Global Wealth Manager

Contact Us

Youssef Intabli
Head of Wealth Management, London

Grace Miu
Benchmarking and Market Sizing, London

Nisha Mittal
Benchmarking and Market Sizing, New Delhi

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