Facility management is undergoing a period of strong evolution, influenced by a number of factors including advanced outsourcing, the adoption of innovative technologies and the changing needs of large corporations. These developments are particularly relevant to the banking sector, where space and service management requirements are becoming increasingly sophisticated and focused on optimisation and sustainability. Below are the main trends, emerging challenges and opportunities related to Facility Management for the banking sector, as identified by Marco Ingrillì, senior manager of eFM, during his speech at the ABI - OSSIF conference, which analysed, among other things, the latest data on banks' facilities expenditure.
Market Trends
1. Outsourcing Evolution:
Outsourcing is taking a new form, moving from standardised contracts to more flexible and integrated solutions. This approach not only improves operational efficiency but also enables greater collaboration between customer and supplier. In particular, large companies are looking for long-term relationships, with a focus on tailoring services, to more dynamically address the day-to-day challenges of managing real estate and realted services.
2. Digital Innovation and Artificial Intelligence
The adoption of advanced technologies, such as artificial intelligence, has become critical to optimising space and asset management. Digital solutions, including those for data management and the creation of more flexible working environments, are transforming the way companies operate, leading to the creation of more adaptable workspaces focused on employee well-being.
3. Flexibility and customisation
Customisation of facility management services is becoming a priority. Especially in the banking sector, companies need tailor-made solutions that meet the specific needs of each branch and head office, while at the same time optimising costs and improving the employee experience.
Challenges for the Banking Sector
1. Space management and branch decline
The number of bank branches is decreasing, but space management is becoming more complex. With the introduction of hybrid and smart working, the occupancy rate of large head offices is decreasing, but this does not mean a decrease in overall floor space. In many areas, there is a greater dispersion of space, with significant peaks in square metres per person in the remaining offices.
2. Total Cost of Ownership (TCO)
Another critical aspect concerns the Total Cost of Ownership, which is the sum of all costs related to the management of company space. This includes the cost of ownership, rent, utilities and facility management services, which vary significantly by geography and property type. Banks need to constantly monitor these costs to ensure effective management of resources, balancing the need for efficiency with the need for sustainability.
3. Energy efficiency and operating costs
With increasing environmental regulations and a growing focus on sustainability, banks are under pressure to reduce energy consumption and optimise the use of resources. This implies not only investment in more efficient technologies, but also reviewing service contracts to find solutions that can reduce energy costs while maintaining a high standard of service.
Facility Expenses in the Banking Sector
The presentation of the benchmarking of facility costs in the banking sector, which was carried out on 18 member banks of the ABI association with a total area of around 9 million square metres, calculated in terms of Net Rentable Area, provided an interesting overview of cost trends and efficiency in space management.
One of the first elements highlighted concerns the TCO for headquarters and branches. For head offices, the average TCO is around EUR 305 per square metre per year for owned properties, while it rises slightly to EUR 315 per square metre for leased properties. Branches, on the other hand, are more cost-effective, at least for owned properties, where the average TCO drops to EUR 176 per square metre per year. However, for rented branches, the cost is significantly higher, reaching EUR 325/sqm per year. This difference reflects, on the one hand, the management efficiency typical of owned properties and, on the other hand, the higher costs associated with renting, especially in urban or high-demand contexts.
In terms of the overall distribution of costs between owned and rented, the 2023 figures show a total expenditure of approximately EUR 6.1 million for owned and EUR 3.1 million for rented. This distribution reflects the strategic balance between owned and rented property adopted by the banks in their territorial networks.
Another key element of the analysis is the breakdown of facilities costs. Services are typically divided into two broad categories: hard services, which include activities such as building maintenance, and soft services, which include services such as cleaning and security. The average total cost of FM services is between EUR 23 and EUR 24 per square metre per year for headquarters and branches respectively. This breakdown highlights the importance of a balanced approach to ensuring both business continuity and a quality environment for employees and customers.
Utilities are also a significant item in the balance of facilities costs. After peaks in the post-pandemic period, costs have stabilised. Currently, the national average for utilities management - which includes electricity, gas and other consumption - is around EUR 25 per square metre per year for headquarters and EUR 23 for branches.
An analysis of property costs shows that head office rents average €250/sq m and branch rents average €265/sq m. Rental costs are slightly lower at €244/sq m and €115/sq m respectively.
Finally, a key aspect that emerges from the benchmarking is the need to optimise costs while maintaining high operational efficiency and promoting sustainability. The adoption of digital solutions and the optimisation of operational processes have become crucial to reduce costs, especially those related to utilities and services, without compromising the quality of services offered to employees and customers. In addition, the increasing emphasis on sustainability and energy efficiency is driving banks to invest in green technologies, which could improve their corporate image in the long term.