Since the global financial crisis of 2008, bank profit margins have remained considerably low in the United States and other advanced economies. One of the biggest reasons is that the expenses have been outpacing revenues and, especially in Europe, the average return on equity of banks has dropped to undesirable lows. Furthermore, regulatory compliance and high levels of expenditure due to the suddenly remote workforce and increased risks due to defaults, insurance claims, client insolvency, and other factors added to the pressure. Therefore, the financial sector must act fast to increase profits, or be forced to continue laying off staff, which reached half a million last year, since 2014. The profits can be increased in many ways, such as streamlining offerings, digitizing processes, seeking low-cost organic growth, and scaling up through mergers, acquisitions, and partnerships. But apart from increasing the profits, cutting costs can also help the financial services industry bette
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