4 Operational Tips For Saving Your Bank Money
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4 Operational Tips for Saving Your Bank Money

The bottom line is this: the bottom line is important for banks.

Today’s banking environment is extremely competitive, and it remains crucial for banks to find that balance between providing unique, high-quality service while keeping costs in line.

Just as there are many different ways a bank can incur costs, there are just as many ways that banks can save money or even reduce costs. One area that can be focused on is that of operational costs. Operational costs are things such as payroll, branch and office supplies, technology, and many costs relating to the bank’s physical locations. In this article, we’ll review several key operational areas you can focus on to help reduce costs for your bank.

Determine Which Costs Can Be Controlled vs. the Ones That Can’t

Many things contribute to a bank’s profitability - some are not controllable, like the interest rate environment, regulatory expenses and fees, or other factors in the current economic landscape. But there are many costs that can be controlled, and many of these lie in the area of operational expenses.

The first step in determining where your company can save money is to determine which costs are fixed and which aren’t. A comprehensive review of your bank’s profit and loss statement is a great place to start. Sometimes it’s such an obvious place to start that it might get overlooked! Compare month to month and year-to-year expenses. Can you identify areas where large increases have occurred? If these are controllable costs, these areas should be reviewed to see if costs can be reduced in responsible ways.

Review Expenses Spent on Supplies

Another area where you can review expenses – and possibly reduce them – is the supplies your bank uses.

There are regular “office supplies” that most businesses with physical locations need – paper, pens, napkins for the breakroom – the basics. But banks require some specific, specialized supplies, such as bank bags, FDIC signage, and coin and currency counters.

You can get regular office supplies from many different vendors, such as office supply stores or web sites. But what about those supplies specifically for banks? These can sometimes be a little harder to find, and may have specific guidelines as to quality and safety. However there’s still ways to be smart about what you’re buying. The best thing you can do is to find a trusted, experienced vendor from which to buy your bank supplies – they can help you make sure you’re getting the best quality of supplies at the best prices.

Creating lasting relationships with your supply vendors increases value – it not only saves you money but also means you’ll get great customer service that can be personalized to meet your company’s specific needs.

Upgrade Technology

While upgrading the technology your bank uses might mean some higher upfront costs, there’s no denying that using technology that allows your bank to operate more efficiently and process transactions and other forms of business faster, will save you money in the long run.

It’s important to review the age of your technology, its efficiency and its safety on a regular basis. These benchmarks should be compared to newer technologies that might be available, to determine if an upgrade would be beneficial.

Reduce Your Footprint

Other ways you can reduce costs are by evaluating your company’s energy usage, the staffing models you’re using in your branches and / or call centers, maintenance costs, the size and number of your branches, as well as operating hours.

If you have multiple locations, can you review your leases and traffic patterns to determine if these are still the best locations for your bank? Can you negotiate new and better lease agreements?

You can even work to implement recycling programs and other employee initiatives that will save money – and possibly be environmentally friendly at the same time!

Over the last few years the banking environment has become extremely competitive and banks are constantly searching for the best ways to create value for their customers while maintaining profitability for its shareholders. And reviewing operational costs can be a great way to be sure your bank is still meeting both of these goals.


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