Capital Markets / 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. We support this transformation through industry-leading benchmarking of Tech and Ops cost, effectiveness, and resourcing.

Explore the solutions

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
  • ✔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%.

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.
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

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.

Regional Investment Bank:

Slowed planned FTE-reduction initiatives after benchmarking showed the firm was already operating below peer efficiency levels, implementing targeted process improvements

Global Markets Institution

Redesigned spans and layers to improve accountability and operational responsiveness.

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

$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
1-5 management layers removed streamlining operating models and eliminating duplication across front-to-back functions
300+ roles reallocated to optimal locations after benchmarking exposed cost-per-head gaps and footprint inefficiencies

Insights

Tech in Banking 2025: Transformation Starts with Smarter Tech Investment

Technology is one of the most powerful levers for financial institutions to build competitive advantage. Smart tech investments, including the deployment of emerging agentic AI capabilities, can reinvent the customer journey, increase speed to market, enable personalization of customer interactions, and drive efficiencies throughout the business. Yet, while banks are making ambitious investments in tech, they frequently miss out on capturing these potential opportunities. So, what’s stopping them?

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

Product - Contact Us
Reset

How can we assist you today?

Learn more about our core areas of expertise by selecting your topic of interest.

Back to Top