Retail Banking / Technology & Operations Benchmarking

Technology & Operations Benchmarking

Technology is becoming a critical competitive lever for financial institutions. BCG Expand provides industry-leading benchmarking of Technology and Operations cost, effectiveness, and resourcing.

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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
  • ✔Inefficient resourcing models inflate technology costs and slow delivery
  • ✔High dependency on contractors and sub-optimal location strategy reduce agility
  • ✔Complex spans and layers increase cost and limit decision-making speed

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%.

Workforce Benchmarking

We analyse FTE mix, role structure, contract type, and location strategy to optimise team design, strengthen delivery capacity, and ensure scalability and cost efficiency.

Developer Productivity Benchmarking

We benchmark engineering practices and development methodologies to identify opportunities to improve throughput, reduce friction, and enhance overall delivery velocity.

Delivery Governance Review

We evaluate governance structures and delivery workflows to surface bottlenecks, streamline execution, and shorten deployment timelines across technology teams.

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
20% productivity uplift delivered by removing 1-5 management layers and harmonising front-to-back operating models
200+ contractor positions rationalised – with work reallocated to permanent engineers, improving delivery quality and long-term capability

Case Studies

International Banking Group

Adjusted location strategies for client-services functions to align with benchmark ratios, achieving multi-million-dollar savings and optimising near-shore versus offshore balance

European Bank

250 positions transitioned offshore after diagnostics highlighted imbalance in higher-than-peer onshore concentration

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
  • ✔ Inefficient resourcing models, including heavy contractor reliance, inflate costs and reduce agility
  • ✔Weak location leverage and unbalanced workforce distribution limit scalability and cost competitiveness

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.

Workforce Benchmarking

We analyse location strategy, contract type, seniority mix, and cost-per-head to identify scalable, balanced, and cost-effective operating-model options.

Organisational Design Review

We assess spans and layers, governance structures, and role alignment to remove duplication, improve accountability, and strengthen operational resilience.

Sourcing & Vendor Mix Optimisation

We evaluate internal vs outsourced delivery models and contractor dependency to reduce cost, mitigate risk, and enhance operational agility.

Client success stories

~5pp improvement in cost-to-income ratio (CIR) through elimination of duplication and improved process control.
$500M+ operations cost savings uncovered through peer-scaled benchmarking and process simplification.
300+ roles reallocated to optimal locations after benchmarking exposed cost-per-head gaps and footprint inefficiencies
500+ external contractor positions reviewed through a resourcing strategy assessment that identified dependency risk and guided the shift toward a more sustainable internal model

Case Studies

International Banking Group

Adjusted location strategies for client-services functions to align with benchmark ratios, achieving multi-million-dollar savings and optimising near-shore versus offshore balance

Regional Financial Services Provider

Following benchmarking of organisational structure and workload distribution, the firm realigned more than 120 operations roles across front-, middle-, and back-office teams. This addressed material capacity mismatches, reduced duplication, and enabled more consistent, higher-quality service delivery across critical processes.

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.

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

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