Comparative analysis of cost management strategies in banks: The role of operational improvements in the US and Nigeria
1 Zenith Bank Plc, Lagos, Nigeria.
2 Rome Business School, Estonia.
3 Independent Researcher, UK.
Review Article
World Journal of Advanced Research and Reviews, 2024, 23(03), 492–507
Article DOI: 10.30574/wjarr.2024.23.3.2708
Publication history:
Received on 26 July 2024; revised on 29 August 2024; accepted on 31 August 2024
Abstract:
This study undertakes a comprehensive comparative analysis of cost management strategies in banks, focusing on operational improvements in the United States (US) and Nigeria. The primary aim was to identify best practices by evaluating how regulatory environments, technological adoption, and cultural factors influence cost management approaches in these distinct regions. Through an extensive review of the banking landscapes, the study found that US banks rely heavily on advanced technological solutions such as artificial intelligence (AI), automation, and fintech innovations to drive operational efficiency and reduce costs. In contrast, Nigerian banks, constrained by infrastructural and economic challenges, prioritize process optimization, strategic outsourcing, and workforce management. The study also highlighted the significant role of regulatory and cultural differences in shaping cost management strategies. While the US benefits from a stable regulatory environment that fosters digital transformation, Nigeria’s regulatory landscape requires banks to adopt adaptive strategies tailored to their unique challenges. Furthermore, cultural factors deeply influence operational practices and decision-making in both contexts. The study concludes that effective cost management requires a tailored, hybrid approach that integrates technology, process improvements, and cultural adaptability. For banks operating in diverse environments, balancing these factors is crucial for achieving sustained cost efficiency and competitive advantage.
Keywords:
Cost Management; Operational Improvements; Banking; US; Nigeria; Regulatory Influence
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0