【正文】 centers. A few panies, such as the main credit card players, are moving in the right direction, but it 抯 not easy. Key challenges include redefining the roles of frontline sales, service, and supervisory jobs and redesigning processes and the supporting infrastructure so that decisions can be made on the spot.These opportunities are not new. But realizing value from them has been extremely difficult because the cost base of most banks is highly fragmented, which makes leveraging improvements across the anization tricky and timeconsuming. Broadbased progress requires changes in the outlook and behavior of employees at all Many programs have so far failed to realize this kind of change because the banks adopting them haven 抰 created pressure to perform at all 7 / 8levels, addressed capabilities in areas such as capacity management, or changed the way frontline managers and employees are hired, motivated, and rewarded.Productivity initiatives interact in important ways with banks?offshoring efforts. The wage savings made possible by moving jobs to countries like India are so attractive that offshoring is a petitive necessity。 over time, many financial institutions will offshore 20 to 40 percent of their cost base, thereby saving as much as 15 percent of their total noninterest expenses. Yet as banks evaluate offshore options, they will have to recognize the relationship between what they move abroad and the productivity of their operations at home. Banks often send easier, baseload calls offshore, for example, reserving domestic call centers to handle more plex requests and to cope with surges in demand. This approach can help domestic call centers improve the way they meet the needs of customers but also demands firstrate capacity In fact, sending functions to lowwage countries doesn 抰 relieve banks of the need to make operations back home truly hum.Consolidation will continue, but growth and productivity initiatives will replace megadeals as the cornerstone of most strategies to create value 梡 roducing a more diverse and plex agenda for executives. Increasingly, CEOs will be orchestrating a number of initiatives that cut across businesses and involve frontline employees throughout the anization instead of making a few big portfolio decisions and driving their execution.Notes:Kevin Coyne is a director in McKinsey 抯 Atlanta office, Lenny Mendonca is a director in the San Francisco office, and Greg Wilson is a principal in the Washington, DC, office. Copyright ?2022 McKinsey amp。 Company. All rights reserved. The authors wish to thank Andrew Appel, Andy Eichfeld, Jack Stephenson, and Corey Yulinsky for their contributions to this article. 1 Profits from retail banking rose by 35 percent and accounted for 68 percent of banking profits from 1996 to 2022. From 2022 to 2022, falling interest rates accounted for 37 percent of the credit card industry 抯 profits. Mortgage refinance applications for 2022 and 2022 equaled the total for the previous eight years bined. 2 Madeleine James, Lenny T. Mendonca, Jeffrey Peters, and Gregory Wilson, Playing to the endgame in financial services, The McKinsey Quarterly, 1997 Number 4, pp. 170?5. 3 For an international perspective, see David Moore, Financial services for everyone, The McKinsey Quarterly, 2022 Number 1, pp. 124?1. 4 Anthony R. Goland, John Hall, and Devereaux A. Clifford, First National Toyota, The McKinsey Quarterly, 1998 Number 4, pp. 58?8. 8 / 85 For details on how to effect changes of this kind, see Emily Lawson and Colin Price, The psychology of change management, The McKinsey Quarterly, 2022 special edition: The value in anization, pp. 30?1. 6 For details on offshoring models, see Gautam Kumra and Jayant Sinha, The next hurdle for Indian IT, The McKinsey Quarterly, 2022 special edition: Global directions, pp. 42?3, particularly Noshir Kaka 抯 sidebar, A choice of model