What should the banks do next? Part 2

Efficiency is one of the main drivers for any company. It is the increase of shareholder returns by delivering profits at reduced costs. Besides striving hard to generate the income (most banks are affected by the recent financial crisis) , they should take a hard look at reducing cost. Two main cost centers they should address are the operations and IT departments.

Through innovative use of technologies like utility computing and virtualisation, banks can reduce costs. and improved speed and service.

The Lehman brothers' saga provided the banks with invaluable experience and insight on communication and service quality. They should also take this opportunity to tighen the process of selling financial products especially if they are to continue offering complex derivative products. Care should be taken to balance risk and efficiency.

Read What should the banks do next? Part 1