Wealth Management / Technology & Operations Benchmarking

Technology & Operations Benchmarking

Technology is becoming a critical competitive lever for financial institutions. 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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Why Technology & Operations Benchmarking

  • ✔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

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%.

Impact Metrics

15–25% reduction in infrastructure costs via estate rationalisation and vendor consolidation.
10–20% IT overspend uncovered across all lines of business relative to peers, revealing significant optimization potential

Case Studies

Global Wealth Manager – Technology Cost Efficiency

A global wealth manager leveraged our benchmarking to understand run-cost inefficiencies and the impact of legacy systems. The results informed a multi-year modernisation programme aimed at reducing fragmentation, strengthening scalability, and rebalancing change vs run spend.

Leading Wealth Manager – Integration After M&A

Following multiple acquisitions, a leading firm faced rising system complexity and operational friction. Our assessment identified 25–40% cost-saving opportunities across technology, operations, and market data, enabling leadership to streamline systems and simplify the operating model.

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

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

Case Studies

Regional Bank-Owned Wealth Manager – Operational Optimisation

A comprehensive technology and operations benchmark revealed significant cost-efficiency opportunities across non-core processes. The client implemented outsourcing and automation initiatives that reduced operating costs and improved workflow reliability across middle- and back-office teams.

Leading Wealth Manager – Integration After M&A

Following multiple acquisitions, a leading firm faced rising system complexity and operational friction. Our assessment identified 25–40% cost-saving opportunities across technology, operations, and market data, enabling leadership to streamline systems and simplify the operating model.

Insights

"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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