KeyBank, one of the largest banks in the United States, has recently announced its plans to reduce costs by $300 million by 2023. This move is part of the bank’s ongoing efforts to improve efficiency and profitability, while also investing in new technologies and services to better serve its customers.
According to KeyBank’s CEO, Chris Gorman, the bank has already made significant progress towards achieving its cost reduction goals. In a recent earnings call, Gorman stated that the bank has already identified $200 million in cost savings, with plans to identify an additional $100 million in savings over the next two years.
So how exactly is KeyBank planning to achieve these cost savings? One key strategy is through the consolidation of its branch network. The bank plans to close around 100 branches over the next few years, while also investing in new digital banking technologies to provide customers with more convenient and efficient banking options.
In addition to branch consolidation, KeyBank is also looking to streamline its operations and reduce overhead costs. This includes consolidating back-office functions and reducing the number of vendors and suppliers the bank works with.
Another area where KeyBank is focusing its cost reduction efforts is in its workforce. The bank plans to reduce its headcount by around 10%, primarily through attrition and voluntary buyouts. This move is expected to save the bank around $90 million annually.
While these cost reduction efforts may seem drastic, they are necessary for KeyBank to remain competitive in an increasingly crowded banking market. By reducing costs and improving efficiency, the bank can invest in new technologies and services that will help it better serve its customers and stay ahead of the competition.
Overall, KeyBank’s cost reduction efforts are a positive step towards improving the bank’s profitability and long-term success. While there may be some short-term pain associated with branch closures and workforce reductions, these moves will ultimately help the bank better serve its customers and remain a strong player in the banking industry for years to come.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- Minting the Future w Adryenn Ashley. Access Here.
- Source: Plato Data Intelligence: PlatoData