A recent report by Nasdaq and Boston Consulting Group, titled ‘The New Growth Imperative: Cutting through Complexity in the Financial System,’ outlines opportunities for substantial efficiency improvements in the banking sector. The report estimates that banks could achieve between $25 billion and $50 billion in savings by streamlining risk and compliance processes without compromising their effectiveness. Furthermore, these efficiency gains could unlock up to $1 trillion in additional lending capacity, providing a significant boost to the financial system. Nasdaq Chair and CEO Adena Friedman noted that financial institutions are increasingly challenged by growing external complexities and internal operational complications, but modern technology offers solutions to address these challenges and enhance resilience and growth.
BCG CEO Christoph Schweizer highlighted the rising costs associated with business complexity and emphasized the opportunity to achieve cost reductions and improved performance outcomes. The report advocates for recalibrating people, processes, and systems to harness technology’s potential. Nasdaq President Tal Cohen emphasized the transformational power of artificial intelligence, stating that properly tackling present difficulties might boost competitiveness and prepare banks for an AI-enabled future. The study calls for a shift from manual processes to systems-based approaches, enabling human resources to focus on innovation, risk management, and decision-making.
