The COVID-19 outbreak has had a significant impact on the banking industry, with retail, wholesale, and wealth management services being particularly affected. To maintain liquidity and profitability, banks are focusing on procurement strategies to reduce costs. According to GEP, procurement costs can easily account for 30% to 50% of a bank's operating expenses, making it a prime area for cost-cutting. Banks can reduce near-term operating expenses by driving down purchasing costs, implementing "stop spending/smart spending" measures, and actively managing operational risks. It is also crucial for banks to preserve customer loyalty during this period of tough business conditions, as it will impact their digital capability, leadership position in the cloud and mobility space, and technological capabilities.
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