Tag: Six Sigma

Hey, How Is Your Gemba At The Bank?

Process Improvement In Banking

This isn’t a personal question, but it is a question that is growing in popularity. Knowing that efficiency is highly correlated to return, many banks, including us, are taking a look at their largest processes (like lending) and going to their Gemba to do it. With more banks adopting a Six Sigma approach and with banks cutting obvious costs, now is time to reassess your banks production of credit, deposits and services. If you want to know more about how understanding your gemba can help in banking, read on.

 

How Lean Six Sigma Can Help Your Bank

Bank Six Sigma

When we tell banks they need to get to a 35% efficiency ratio to be competitive in the future they look at us like we are crazier than an outhouse rat. Let’s set the branch debate aside (the largest functional cost area) as that is basically a philosophical argument. Let’s just look at your next largest functional cost – loan processing. We get challenged all the time by banks telling us they are “already at full capacity” and “we are already lean.” We point out that there is a difference between being at full capacity and being at optimal productivity.

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