A report by KPMG has revealed that banks worldwide are preparing for sweeping cost reductions, with most of them expecting automation and artificial intelligence to drive savings of up to 20 per cent by 2030.

The survey found that 82 per cent of banks intend to reduce their cost base by at least 10 per cent within the next few years, while nearly a third are aiming for cuts above 20 per cent.

Automation has become the preferred route to profitability for 38 per cent of lenders, followed closely by digitisation of core operations at 37 per cent.

By comparison, only 31 per cent are focusing on retraining their staff to keep up with new demands.

The report cautioned against placing technology ahead of people, warning that, “Focusing on automation alone may deliver short-term wins but risks leaving organisations without the skills needed to sustain transformation.”

Read More

  1. CBK earns ISO/IEC certification for excellence in IT Service Management
  2. CBK announces approval of 27 more digital lenders, bringing total to 153
  3. Details of Pesalink, NALA, Equity Bank solution for remittances from Kenyans

Kenya’s banking sector is already showing signs of this shift. 

Major lenders such as Kenya Commercial Bank (KCB), Equity Bank, and Co-operative Bank have been scaling up digital platforms at speed.

According to the Central Bank of Kenya, roles such as bank tellers and call centre staff face the greatest risk of disappearing, while opportunities are opening for professionals in analytics, cybersecurity, and technology.

Jörg Fehrenbacher, a KPMG partner for financial services, noted that the focus on efficiency has grown sharper over the past year. 

“We have seen a lot of transformation programs focused on end-to-end process optimisation over the past twelve months," Fehrenbacher stated.

"Tellingly, the focus has been not only on digitalising the process, incorporating greater automation and removing manual tasks, but also on cost."

The link between operational transformation and cost is clearly top of mind for banks,” he explained.

The findings suggest that institutions aiming for long-term stability will need to manage cost reduction while also addressing workforce skills and customer expectations, instead of leaning solely on automation.