Gartner Research

Bank CIOs Must Go Digital to Improve Business Value and Optimize Costs

Published: 03 June 2019

ID: G00390069

Analyst(s): Vittorio D'Orazio

Summary

Gartner’s Cost Value Matrix indicates that 54% of banks and investment service firms are cost-inefficient, while 36% leverage IT spending in digitalization to achieve above-average business value. This threat to competitiveness is not decreasing — this is a call to action for bank CIOs.

Table Of Contents

Analysis

  • The Gartner Cost Value Matrix
  • Banks and Investment Service Firms Digitalize to Improve Their Cost Value Ratio
    • Banks Should Remain in the Cost-Inefficient Quadrant Only in a Few Situations
    • Revenue Potential Will Justify Moving Into Another Quadrant
  • CVM Development Between 2017 and 2019: Laggards Are Left Behind as Leaders Disappear Into the Distance
  • A Deeper Analysis of the Survey Sample
    • Core Banking Systems Are Paving the Way to Value for Money
    • Legacy Systems Mire Tier 1 Banks in the Cost-Inefficient Quadrant
    • Banks in the Value-for-Money Quadrant Have Business KPIs That Are Much Better and That Tend to Improve Over Time
    • Excessive Workforce per Branch Drags Down Efficiency
  • How to Move Your Bank Across the Cost Value Matrix

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