Cost Management in the Banking Industry

Abstract

Opportunity-8

Banks today face considerable challenges from every direction. The ongoing environment of low interest rates continues to create ‘intense margin’ pressure and barriers to growth. At the same time, increased competition by banks and FinTech companies continue to nibble away at the edges of the traditional banking business, posing a constant threat of disruption. Also, banks are bleeding with mounting NPAs. Meanwhile, consumer preferences and expectations are endlessly shifting and rising as new and Incumbent Digital Innovators redefine how Services are Presented and Delivered.

In this challenging environment ‘cost management’ remains a strong imperative for the entire banking industry in India (including FinTech companies).

Public sector banks are now focusing on “cost reduction†measures i.e., controllable costs at branches, administrative offices, ATM/CDM centers, central processing centers, at product design level (both liabilities & assets products), increase in alternate delivery channels (like mobile banking, internet banking, call centers etc.). Thereby a need arises to recruit Cost Accountants in the banking sector. Recently PSBs are issuing advertisements to recruit CMAs as ‘Cost Accountants’ in their Head Office, Circle Offices, Zonal Offices, Regional Offices etc. This is an opportunity for ‘young CMAs’ to join banks (those who prefer in service instead of practice). Some banks prefer to employ CMAs in their Treasury and Foreign Exchange Departments and also other Strategic Departments.