Deloitte: banks need to heighten focus on cost control

Banking retail still has the potential to see rapid growth in the next few years, but banks need to heighten their focus on cost control. Deloitte analysts believe that on a market witnessing double-digit annual growth, there is sufficient room for new investors. “There is enough room on Central European markets to set up a successful business in banking retail,” says Marcin Zdral, a partner at Deloitte Poland. The study highlights the focus of banks on Central European markets to rapidly increase their market share, as the expansion of their client portfolios allows them to increase their revenues by means of cross selling. However, bankers are less concerned with profit increases, in contrast to banks in Western Europe, where cost control and re-engineering remain the focus of their attention. Deloitte analysts believe there is high potential in the area of small enterprises (which account for over 95% of the companies on the market), given that entrepreneurs are optimistic about their respective national economies and are willing to make long-term investments and to attract funding.