Cost efficiency discussed at recent BoV forum

Bank of Valletta's strategy in the area of cost efficiency was recently discussed during a Strategy Discussion Forum organised for BoV managers. The forum was addressed by Albert Frendo, Head of BoV's Cost Efficiency Unit and by Nick Willmer, a specialist in financial institution cost management.

Over the past year, BoV has embarked on a cost efficiency exercise that is intended to reap economies that will be felt in the coming years. Spearheading this process is the Cost Efficiency Unit, which the Bank has set up recently. This is probably the first business function of this sort on the island.

Mr Frendo said that the Cost Efficiency Unit is aiming for a cost awareness and value-for-money culture within the organisation, increased flexibility in costs and a direct positive effect on performance through improved cost management.

The process of managing costs effectively at Bank of Valletta is based on long-term planning for new spending initiatives, detailed cost/benefit appraisals of major projects, specific reviews and improved cost information for line and functional managers.

Mr Willmer said that it was today becoming increasingly important for organisations to manage costs effectively, prioritising investment to make the best possible use of available resources.

BoV Executives who intervened in the discussion highlighted how the Bank is taking initiatives and introducing processes that are cost effective.

Concluding the discussion, BoV Chairman, Joseph F. X. Zahra, said that BOV was taking a professional approach towards managing costs effectively, in the context of a more customer centric organisation. Mr Zahra added that BOV considered the effective management of cost as a strategic tool which, coupled with innovative products and high quality service levels, will benefit all of its stakeholders.