Lean Six Sigma in Banking & Finance Industry
As per the industry classification benchmark, this industry sector includes the following sectors:
Banks – Banks providing a broad range of financial services, including retail banking, loans and money transmissions.
Suntrust Bank, Citigroup and JPMorgan Chase & Co. are few examples of initial Six Sigma success in banks. JPMorgan Chase & Co is the second largest bank in the US. With Six Sigma, it has generated wonderful results through expense reduction, revenue increase and enhanced customer satisfaction.
American Express began with Six Sigma in 1998. It has benefited with billions of dollars of benefits since then. Bank of America started with Six Sigma in 2001 and has announced huge savings through increased savings, increased revenue and enhanced customer satisfaction.
Among Indian companies, Benchmark Six Sigma has had participation from good number of financial sector participants in recent six sigma training programs. Few of them are ABN AMRO, IDBI, HDFC Bank and ICICI Bank. Some example Six Sigma project titles are mentioned below.
Applicaiton of Lean Six Sigma in Banking
Loan Department
1. Reducing the cycle time to Process a Loan Application (both Mortgage & Personal loans).
2. Improving the Customer Information gathering processes.
3. Improving the Credit Evaluation Process
4. Improving Productivity of loan processing agents
Account Opening
1. Reducing the time to open an account
2. Reducing errors in account opening process.
3. Reducing rework in processing customer applications
Other Projects in Retail Banking
1. Reducing the Credit Card Delivery time.
2. Reducing Bank Statements Processing & Delivery time.
3. Reducing the errors in money transfer
4. Improving accuracy, timeliness and completeness of customer communication.
5. Developing new products (timeliness, business potential)
6. Improving Market Share of existing banking products.
7. Improving the Branch Banking Processes
Case Study Description
1. In a banking data capturing process, it was found that the process yield (first time right %) was only 65%. A Six Sigma project was initiated. A detailed process study led to identification of validated root causes. Alternative solutions were identified and the best one chosen after few hypothesis tests. Within two months the data capture process reached a yield of 85%. By putting in tighter controls, this process yield moved further to 94%.
2. A leading bank found that the reconciliation process had several issues. Data collection led to the following being recorded as the more frequent ones –
- The reconciliations were not completed on time.
- Process improvements were not communicated to the client.
- Processors lacked proper understanding of the process.
Several business process changes were initiated. Value add/ Non Value Add (NVA) analysis showed that more than 60% of the processing time was avoidable NVA. Mistake proofing and decision tree techniques were introduced to reach the goal of 100% reconciliation on time.
Feedback from participants
Great workshop with ideal mix of theory, practical examples and case studies. Helps establish basic concepts.
-Abhishek Banerjee, Specialist- Enterprise, BOC Global
The Approach was fantastic. I liked the way the Facilitator covered all the modules. Wonderful content to kick start and to handle the Six Sigma Project.
-Hari Krishna Dasaraju, Manager – Operational Risk, Arab National Bank.
The best thing I liked was the entire range of topics covered.
-Arvind, Manager, Canara Bank
Statistical tools covered in order to test and analyze the data. Trainer’s knowledge is appreciable. Yes. ” Anyone who is serious about Six Sigma should go through this course”
-Feroz Beg, Manager – Operations, HSBC
The course is quite informative , makes a lot of complicated work easier.
-Indrashish Chatterjee, Customer Care Executive, HSBC
It was an excellent experience attending this course.
-Jonney Arora, Asst Manager, Bank of America
I am glad to join Benchmark six sigma green belt training course, I have gained a lot and been able to implement many tools of Six Sigma in Banking processes.
-Sumit Chhabra, Process Developer, Bank of America
The information in the website is very good and we are able to easily get connected with the management. I liked the various applications and the basics of Six Sigma.
-Kanney J Sai Krishna, Associate, Bank of America
I liked the presentation and the case studies the most.
-Sushma Kundapur, MIS Supervisor and Quality, Deutsche Bank
The training skills and the course material are outstanding.
-Maghusudan Shivaprasad, Asst Team Leader, AL Mashreq Bank Dubai.
The certification program serves as an eye opener in putting out-of-box thinking into practice.
-Raghavan Srinivasan, Asst. Manager, ICICI Bank Ltd.
Excellent way to convert your life into sigmas.
-Girish Patel, HDFC Bank Ltd.
The approach taken enhanced my skills, polished my knowledge on Six Sigma. I began to talk the Six Sigma knowledge!
– Naveen Joseph, Bank of America
Six Sigma Green Belt Certification program has provided an opportunity for me to strengthen my skills in Process improvements and has vastly improved my analytical abilities. It has given a new insight on a SMART way of thinking and bringing change in business.
-Sunil Wadhwa- Manager, ABN-AMRO
Easily understandable materials and exemplary presentation skills!
-James Prasad. Thorlapati: Manager – Credit, Cutomer Care, Axis Bank
Six sigma training has definitely impacted the way of understanding the root cause concerns at professional levels by providing a complete understanding of the subject.
-Pretty Singh, DY Manager, HDFC Bank
Trainer and the training was world class with practical application of each and every tool which made learning easy yet powerful.
-Tushar Kanti Ghosh, Sr Associate, Bank of America
It’s wonderful content to Kick Start and to handle the Six Sigma Project in Banking. I think every professional should attend the training classes without miss.
-Hari Krishna Dasaraju, Manager – Operational Risk, Arab National Bank
Learned six sigma in a better way with Benchmark.
-Arvind, Manager, Canara Bank
“Anyone who is serious about Six Sigma in Banking should go through this course”
-Feroz Beg, Manager -Operations, HSBC
The course is quite informative, makes a lot of complicated work easier.
-Indrashish Chatterjee, Customer Care Executive, HSBC
The information in the website/Forum is very good and we are easily able to get connected with the management.
-Kanney J Sai Krishna, Associate, Bank of America
The presentation and case studies are simply fantastic.
-Sushma Kundapur, MIS Supervisor and Quality, Deutsche Bank
I expected to gained insights into Black Belt. The instructor was very knowledgeable and explained the concepts very well.
-Madhusudhan Shivaprasad, Asst Team Leader, AL Mashreq Bank Dubai
I liked the faculty & material of Benchmark Six Sigma.This training helped my learning significantly.I am confident that this training will help me in my future black belt projects and thus career progress.
– Raghavendra Mamilla, Manager(Service Quality), Standard Chartered Bank.
The course length is apt. I liked the gap of the days and the gentry of the training.
– Udeesha Gupta, Regional Quality Manager, ICICI Bank
Benchmark has a very good course content with well organized sequence of topics and flow of the concepts.
– Jigneshkumar M. Kachhia, Senior Analyst, Deutsche Bank
Six sigma is a wonderful tool to empower process and lead to perfection.
– Dhruval Nitin Mehta, Manager- Administration, HDFC
The Green Belt Six Sigma Course is informative and instructional. The flow of the course makes it easy to assimilate various types of best practices. Learning is conducted in an interactive fun way making it easy to remember new ideas and methodologies for future recall.
– Suzanne da Costa, Vice President, HSBC India
A tool/way of thinking that every individual should experience to realize the potentials of Six Sigma. It works in the smallest of processes.
-Shabana Jabalpurwala, J.P.Morgan
This course can add value irrespective of sector and current profile.
-Ajay Gupta, Team Manager, JP Morgan Chase
Understanding statistical concepts was never so easy .VoC: Keep up the good work!!
-Uthara Nair, Risk Performance Officer, Standard Chartered