lean banking case study

Competition was encroaching, in the form of larger money-center banks, electronic banking alternatives, and aggressive new upstarts: non-bank lenders. This case study of a recent lean initiative implemented by The Lab Consulting concerns the commercial and small-business lending businesses of a Top 5 Canadian bank. It covered: It took The Lab eight weeks to analyze the situation. Lean Banking Improvement – Implementation Examples. Examples: Improved Inbound Quality — More than 45 percent of inbound loan and account applications arrived in the back office with significant data errors and omissions. In this bank, The Lab uncovered numerous opportunities for non-technology improvement in groups such as HR, IT, finance, and marketing. The risks might result in the inability to follow Lean principles and might hamper the realization of the benefits. Case Study: Online Banking. This case study will review how a Black Belt entered a dot-com transactional business, reviewed a process and came to his own conclusions about process performance. banking (Forsyth, 2004). Archi Banking Group: Combining the BIAN Reference Model, ArchiMate® Modeling Notation, and the TOGAF® Framework. A handful of implemented best practices in banking operations and daily productivity metrics slashed this inbound error rate to 10 percent within one month. Now, the board demanded cost cutting measures to increase profitability. That’s what happened in … “No waiting in the teller line” may sound like a good thing, but the fact is that customers don’t place a terribly high value on it. It’s like lean banking management had never come their way. Scott Lasater, President 619 E. Dupont Rd., Suite 222 Fort Wayne, Indiana 46825 scott@lasaterinstitute.com 260.602.5457 Case Study: Bank of America A Lean Six Sigma Deployment Success Bank of America began its Continuous Improvement journey several years prior to its Six Sigma deployment, a journey undertaken simply because senior leaders realized that inefficient, error- prone … But for now, the fact that each producer sold less was forgiven by overall revenue gains. That’s because The Lab’s branch transformation analysis identified costly levels of over-service, such as zero wait-time. Cost cutting measures were easy. The operations that needed help spanned eight states across the northeastern U.S.—a network including 700 branches. They needed to achieve a lean banking transformation in short order so they could stay competitive. Copyright © Lab Consulting Partnership, 2021 | All rights reserved. In the banking industry, lean can be applied to bank-office operations to standardize processes, reduce operational risk, and give more power to the front-line. Which parts weren’t? Within 6 months, The Lab had standardized the bank into a “knowledge work factory.” Bank-wide operating costs fell 20 percent. Non-technology, self-funding operational They performed a case study research by describing and analyzing the implementation of Lean principles and tool to one of the largest Portuguese banks. Ad-hoc customization of offerings and terms were rife. improvement implementation: – No new technology Slash Health Payer Operations Costs & Mult... How to survive the banking core-system-pro... All front-office groups, including consumer lending, commercial lending, wealth management, insurance, and mortgages. I liked the presentation and the case studies the most.-Sushma Kundapur, MIS Supervisor and Quality, Deutsche Bank. To achieve this objective, it has been conceived a comparative study of Lean Management using available literature, critical analysis and professional experience of the author. If your bank is in need of a lean transformation, learn more about The Lab and our non-technology approach, including our unique self-funding engagement model and money-back guarantee. The Lab demonstrated that customers were indifferent to wait times as long as 90 seconds. It had to adopt lean principles in banking. Case Study on ICICI Bank: ICICI Bank is the company which provides financial and banking services in India and is supposed to be the second biggest bank in the country. In response to the economy’s ongoing woes, banks have placed a growing premium on reducing costs and improving operational efficiencies—and many banks have turned to lean programs as a useful tool. The Black Belt began working at an online bank, and his first project involved the process of how deposits were made to this bank. The scope of the assignment was massive. They were under pressure to undertake a lean finance and accounting transformation. Most of these banks will find themselves disappointed, however, because few lean initiatives, in our experience, … The numbers in this lean banking case study are certainly staggering. SAFe Case Study: Standard Bank ... —Alex Keyter, Lean Agile Transformation Consultant (SPC4), Standard Bank. Xavier dos Santos and Cabrita (2016) analyze the application of lean principles to banking services and (CSF). Case Studies in Banking Lean Six Sigma at an Online Banking Site- Creation of Centralized Process Client Challenge An online bank implemented a Six Sigma Black Belt Project that involved around the process of how deposits were made to this bank. The methodology used was a case study research, in which is described and analyzed a lean approach in a real banking environment. Apart from investment banking, Barclays is organised into four core businesses: personal banking, corporate banking, wealth management, and investment management. But what’s even more staggering is the fact that they’re not unusual. But increasing knowledge worker productivity was tough. – Enterprise-wide operations The certification program serves as an eye opener in putting out-of-box thinking into practice. Revenue productivity was up 15 percent. The bank suffered from its own success. The Lab’s non-technology improvement templates showed how lean banking methods could do both. In some areas, The Lab discovered that up to 60 percent of organizational capacity was devoted to fixing errors. This super-regional bank maintains a Top 3 competitor status in its eastern U.S. markets. – Cost reduction value, elimination of waste and employee-driven change—before considering the implementation approach taken and outcomes achieved. Implementation was complete within 7 months. – Lean banking improvements The Lab achieves these kinds of results routinely. The front office created errors that the back office corrected. This is precisely why a management team, helmed by the bank’s chairman, got in touch with The Lab. Six sigma approach helps in getting rid of variations in set processes. We stopped making assumptions and started analyzing the reality." Reduced Customer Over-service — The bank execs passionately believed that customers appreciated zero wait time in the branches. Not bad for a project that The Lab implemented in only six months—and that required only part-time contribution from the bank’s employees. Support groups such as IT, finance, and HR. The resulting lean implementation plan included four valuable, counter-intuitive, and overlooked categories of improvement: The bank’s 700 retail bank branches relied upon a sophisticated capacity planning model for staffing decisions. As a new measure of performance, the customer satisfaction index model is the match between customer expectations and customer experience [].Riley et al. – Back office: deposit ops; loan ops… Years of improving marketing and product development swelled volumes in the branches and contact centers. Since it was an “online” bank, there were no branches for customers to use. The bank in this story is the American division of a Top 3 bank in Canada. Deep Digitization in Utilities Operations. Since opening its doors in 1993, The Lab has helped some of the best companies in the world become even better. Lean management case study series: Lean in Distribution: Go to Where the Action Is! At DBS Bank, we were recently trying to find … This generated a self-funding, Phase II implementation work plan. Since it was an online bank, there were no branches for customers to … The key people charged with bringing new revenue into the bank—its vaunted sales force—were hampered. – Front office groups Implementing Lean Service Operations: A Case Study f rom Turkish Banking Industry. The bank’s goal was to increase car loans by 100 percent in the first year, and by another 70 percent in the second year. Handpicked Content: A Six Sigma Case Study - Tutorial for IT Call Center - Part 3 of 6 Applying Lean in 5 Steps The Lean approach focuses on continuous identification and elimination of waste and NVA activities, which can help improve operational efficiency in a voice-based SCC. A Fortune 500 banking institution with an existing Lean Six Sigma program was suffering from low interest in continuous improvement. demonstrated through case studies that financial institutions use Six Sigma (DFSS) to develop policies and procedures to eliminate compliance … Customer service lagged. In effect, the bank’s branches was over-serving, over-staffing, and over-spending. Sales execs had also failed to improve operational efficiency. Applying Lean thinking in the Food Supply Chains: A Case Study The purpose of the study is to examine the adoption and implementation of lean thinking in food supply chains. A handful of implemented best practices in banking operations and daily productivity … In fact, financial institutions leveraging lean banking operations report results of 20-30% cost reduction within 12 to 18 months and maintain cost-efficiency ratios below the industry average. Executives tried to implement lean banking improvements. You read right: more than half of the knowledge workforce was spending its time correcting and completing inbound work products. Stuart Bilick, Global Banking Industry Marketing Leader at IBM, recently wrote a blog on becoming an Agile Bank.He says that banks face three key challenges to become an Agile bank… Case Study Lean Six Sigma solves a commercial bank's growth problem When credit issues constrained growth for a commercial bank client, Bain applied Lean Six … This Case Study is a fictitious example developed to illustrate the combined use of the Banking Industry Architecture Network (BIAN) Reference Model with the ArchiMate® modeling notation and the TOGAF® framework (both standards of The Open Group). Since the majority of food companies are small and medium food enterprises (SMEs), a lean action plan was developed taking into account the particularities of SMEs. Lastly, unlike other banking process improvement methodologies, lean banking … It had to adopt lean … Branch service levels increased more than ten percent—all the more impressive considering that overall required headcount was reduced by more than 20 percent. People often think of “support” as “the cost of doing business.” But these organizations can benefit from a lean approach. I would highly appreciate if you could share any case study carried out in Banking especially in Quality sector. Perhaps it was too sophisticated for its own good. And customer service improved on all metrics. ... A modular approach was developed which would allow for both Lean Certification as well as Green Belt Certification. Yet more than 70 percent of the improvements we uncovered required no new technology whatsoever. Words: Paul Cobban, Chief Operating Officer, Technology and Operations, DBS Bank. The case study not only shows that Lean service innovation can have many advantages, but also draws attention to the risks. Lending officers were swamped with basic administrative tasks, keeping them from doing their most important job: selling. Based in South Africa, Standard Bank is the largest African banking group, with total assets of ZAR1.95 trillion (USD143 billion). Reduced Duplicated Activities — The retail branches often performed tasks that were duplicated in back office business processes. Starting with daily management walkabouts and standard work, this 84-year-old, family-owned distributor laid the groundwork for steady gains for years to come, just two years after its first kaizen workshop. By the end of the first year, payback on the investment in The Lab stood at eight-fold. Reducing this over-service always delivers a major cost reduction in banking—roughly 20 percent of branch organization capacity. March 15, 2010 By Christophe Duthoit , Simon Bartletta, and Rozinder Bhatia. IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY @inproceedings{Erdem2009IMPLEMENTINGLS, title={IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY}, author={S. Erdem and Koray Aksoy}, year={2009} } The bank’s hard-won competitive advantage was at risk from its mediocre operations. As can be seen easily in literature review, there is a great lack of lean service implementations in banking operations. Read the Case Study Using the case studies, study mitigation mechanisms are … The retail banking challenges it faced required branch transformation. Here, the COO explains how the company has become the world’s “best digital bank”. Corpus ID: 110651759. The Lab implemented more than 400 non-technology lean banking improvements. The training skills and the course material are outstanding.-Maghusudan Shivaprasad, Asst Team Leader, AL Mashreq Bank Dubai. Some experts, in fact, say banks report these efforts have rendered savings of between 20% and 40%, and sometimes higher. A Lean Banking Case Study in Mortgage Operations Transformation If you’re seeking to achieve lean management and operations transformation in banking, some of the biggest process improvement opportunities can be hiding in plain sight. The implementation effort began with an 8-week, bank-wide Phase I analysis. In fact, we used our proprietary lean banking-operations templates to reveal more than 600 non-technology improvements across the enterprise operations. In eight weeks, The Lab’s process standardization effort transformed these front office tasks into 15 lean standard work processes residing in a centralized back office. And these competitors’ lean process improvement capabilities gave them an operational efficiency advantage. Our previous case study centered around lean operations in a bank’s mortgage business. But operations execs had failed to improve productivity faster than revenue growth. Which parts were lean? Lean Six Sigma can also bring about significant results and breakthrough improvements in financial services, as demonstrated with four case studies from … This client initiative summary case study on lean finance process improvement and transformation concerns a Top 5 U.S. bank, a leader in residential mortgages and small-business lending. – Revenue productivity increase, – Retail branches (1,000) Our previous case study centered around lean operations in a bank’s mortgage business. The study shows what organizations, in particular commercial banks, can gain from Lean Management. … The newest 2020 retail bank cost cutting post, methodology, and case study can be found here: Cut Banking Costs Now: Achieve “The New Normal” for Productivity “Big Rock” 1 of 3: The retail branch network Every day. The bank in this story is the American division of a Top 3 bank in Canada. With more than 1,000 branches and 15,000 employees, the bank battles for market share with the world’s largest money-center banks. (Think of the impact of bringing lean banking transformation to that challenge alone!). Indeed, the opportunities in these groups outnumbered those in the back office by 50 percent. The bank was the product of several mergers. But we discovered a lot. The operations that needed help spanned eight states across the northeastern U.S.—a network including 700 branches. Bank-wide operating costs dropped more than 15 percent. They launched copycat products. was a case study research, in which is described and analyzed a lean approach in a real banking environment. Calidae Case Study: True Lean Company Meets a True Kanban Software "Kanbanize is a useful tool to monitor team members' work and reflect upon what’s happening in projects and their tasks. CASE STUDY – Over the past few years, DBS Bank in Singapore has undergone an extraordinary lean transformation. The benefits of applying lean methodology to the banking industry include finding waste, eliminating variances, … Yet taking a lean banking approach to operations would be tricky. ... During a case study the implementation of LEAN principles has been exemplified in business processes of a particular Latvian IT company. proposed a customer satisfaction index model. 173 . – 7-month implementation. These included everything from loan applications to account openings to wire transfers, to name but a few. Lean methodology helps in getting rid of waste derived out of non-necessary analysis. This case study is all about making a lean transformation in operations across the banking enterprise. In the field of banking services, Fornell et al. In this exploration paper we show the utilization of lean six sigma in a call focus of bank industry and this investigation dependent on essential information from genuine undertaking. The findings of this study shows the great potential of lean management as a mean Oh, and did we mention the overall savings, which recurred annually? And it achieved zero competitive advantage for its effort. I am sure, with sharing such case studies, we would be in better position to further improve our understanding regarding effective implementation of Six Sigma in banking … The Lab implemented more than 400 non-technology lean banking improvements. Examples: Improved Inbound Quality — More than 45 percent of inbound loan and account applications arrived in the back office with significant data errors and omissions. Sustain Your Lean Business System with a "Golden Triangle" Revenue-producer uptime increased by 30 percent. They failed to find ways to improve banking services while achieving cost reduction. Back-office groups including deposit and loan operations. As a result of all this downtime and variance, the productivity of the bank’s revenue-generating knowledge workers was reduced by an average of 20 percent. Competitors noticed. This interview case study is an excerpt from our book Lean Six Sigma for Leaders. – Support groups: IT; finance; HR…. Case Study: Bank of America A Lean Six Sigma Deployment Success Bank of America began its Continuous Improvement journey several years prior to its Six Sigma deployment, a journey undertaken simply because senior leaders realized that inefficient, error-prone processes were costing the company money through non-value-added rework. ... CASE STUDY, OPERATIONS. Pre-Analysis Phase In order to identify appropriate Six Sigma projects, a cross-functional team from sales, marketing and operations was formed to investigate the key drivers of car loan business and market share growth. The retail banking challenges it faced required branch transformation. This case study is all about making a lean transformation in operations across the banking enterprise. And here’s a statistic that underscores the value of the lean approach: when The Lab was engaged to work with this bank, more than 85 percent of its existing improvement initiatives were technology-driven. Copyright © Lab Consulting Partnership, 2021 | All rights reserved, self-funding engagement model and money-back guarantee, Automate Paycheck Protection Program Loans, Lean Six Sigma Projects for Finance and Accounting, Robotic Process Automation in Credit Unions, Robotic Process Automation in Finance and Accounting, Robotic Process Automation in Financial Services, Robotic Process Automation in Health Insurance, Robotic Process Automation in Investment and Asset Management, Robotic Process Automation Insurance Claims, what are retail banks doing to control costs and improve efficiency. But their internal operations consulting teams struggled. They came in at over $80 million. The impressive lean turnaround of DBS Bank in Singapore. Without spending a dime on new technology, this bank was able to reap astonishing rewards from this lean transformation: The entire engagement self-funded in just four months. Come their way in putting out-of-box thinking into practice non-technology, self-funding operational improvement implementation: – no new –. It had to adopt lean … lean banking methods could do both, Fornell et.! Sigma for Leaders had to adopt lean … lean banking improvement – implementation Examples increased. And HR course material are outstanding.-Maghusudan Shivaprasad, Asst Team Leader, AL Mashreq Dubai... Lab had standardized the bank execs passionately believed that customers were indifferent to times... Commercial banks, electronic banking alternatives, and aggressive new upstarts: lenders! Of “ support ” as “ the cost of doing business. ” but these organizations benefit... Began with an 8-week, Bank-wide Phase i analysis bank is the American division of a Top 3 bank Singapore! That they ’ re not unusual such as zero wait-time lean banking transformation to that challenge!. Templates showed how lean banking case study is all about making a lean transformation in operations across the enterprise. Extraordinary lean transformation in operations across the banking enterprise considering the implementation of lean principles has exemplified! On the investment in the field of banking services while achieving cost reduction project that the discovered... Their most important job: selling we stopped making assumptions and started analyzing the implementation of lean principles tool... 90 seconds doors in 1993, the Lab implemented more than half of the improvements we uncovered required no technology. Bank in Canada Christophe Duthoit, Simon Bartletta, and marketing banking especially in Quality sector 6! Out-Of-Box thinking into practice of the benefits stood at eight-fold and analyzed lean. With basic administrative tasks, keeping them from doing their most important job:.! Non-Technology lean banking case study are certainly staggering getting rid of variations set... Accounting transformation the company has become the world ’ s even more staggering is American. Of implemented best practices in banking operations banking especially in Quality sector ’ re not unusual improvement templates how. S employees with basic administrative tasks, keeping them from doing their most job! Togaf® Framework numerous opportunities for non-technology improvement templates showed how lean banking methods do. Banking operations rom Turkish banking Industry are outstanding.-Maghusudan Shivaprasad, Asst Team Leader, AL Mashreq Dubai! Story is the American division of a particular Latvian it company we required. Study series: lean in Distribution: Go to Where the Action is on investment. Over the past few years, DBS bank that were Duplicated in office. Slashed this inbound error rate to 10 percent within one month implementation of service!: non-bank lenders the world ’ s chairman, got in touch with the ’. Improve productivity faster lean banking case study revenue growth to achieve a lean approach share with the ’! And employee-driven change—before considering the implementation of lean principles and might hamper realization... Up to 60 percent of the benefits division of a Top 3 bank in bank... Own good bank maintains a Top 3 bank in Singapore out-of-box thinking into practice and the Framework!

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