2019年-普华永道全球_The_productivity_agenda_PwC_29页_5mb

Summary of The Productivity Agenda: Moving Beyond Cost Reduction in Financial Services

Core Content

This report from PwC outlines the challenges and opportunities facing the financial services industry in improving productivity beyond traditional cost-cutting measures. It highlights that while cost reduction has been a common strategy, it is no longer sufficient to address the current and future demands of the sector. The report identifies six key areas where financial institutions can focus their productivity efforts and provides insights into the current state, challenges, and steps to take in each.

Main Points

1. Better Understanding the Workforce

• Many financial institutions lack detailed knowledge of how employees spend their time.
• Only 27% of respondents track employees by task on an hourly basis.
• Task catalogues and time tracking systems can help identify inefficiencies and improve productivity.
• Improved tracking enables better resource allocation and the use of lower-cost or less experienced workers for specific tasks.

2. Rethinking Change Functions

• Change management is a critical area for productivity, with 41% of institutions spending 20% of their budget on such efforts.
• Many institutions are dissatisfied with their ability to execute change, with only 15% expressing satisfaction.
• Poor execution management and lack of appropriate sourcing models are major issues.
• A better approach involves using a mix of onshore, nearshore, and offshore resources, along with advanced tools like PwC's Productivity Hub.
• This leads to improved project delivery and significant cost savings.

3. Embracing the Platform Economy

• The platform economy offers new ways to create value through behavioural, cognitive, and network capital (BeCoN).
• Crowdsourcing and gig-based talent are becoming increasingly relevant.
• Only 21% of financial institutions currently use crowdsourcing tools.
• 7% of talent sourced from platforms is gig-based, but this is expected to rise significantly.
• Crowdsourcing can help solve complex problems and drive innovation.

4. Improving Workforce Digital IQ

• Digital IQ refers to the ability of employees to understand and use digital tools effectively.
• Financial institutions need to enhance this to remain competitive in a rapidly evolving digital landscape.
• Training and upskilling are essential to ensure employees can adapt to new technologies and workflows.

5. Bringing an Agile Mind-Set to the Mainstream

• Agility is crucial for adapting to market changes and digital disruption.
• Financial institutions must foster an agile culture to support innovation and transformation.
• This involves changing traditional work practices and embracing flexible, iterative approaches.

6. Mastering Digital Labour

• Digital labour includes the use of automation, AI, and other digital tools to replace or augment human work.
• These tools can improve efficiency and reduce costs, but their implementation requires careful planning and management.
• Institutions must ensure that digital labour complements human expertise and enhances overall productivity.

Key Information

• Cost-income ratios are a major concern for financial institutions, with many struggling to meet their cost of capital.
• Traditional cost-cutting methods are no longer enough; the industry needs to focus on productivity improvement and digital transformation.
• Digital IQ and agility are becoming essential competencies for employees.
• Platform economy and crowdsourcing are emerging as powerful tools for innovation and efficiency.
• Gig economy is expected to grow, with 41% of respondents anticipating more gig-based employees in the next 3–5 years.
• Technology integration is vital for improving productivity, including the use of task tracking systems, analytics, and digital tools.
• Execution and transformation capabilities are critical to long-term success in the financial services sector.

Conclusion

The financial services industry must move beyond cost reduction and focus on sustainable productivity through digital transformation, agile practices, and the strategic use of platforms and gig workers. Institutions that invest in understanding their workforce, improving digital IQ, and rethinking change functions are better positioned to thrive in a competitive and evolving market.