Lean Six Sigma solves a commercial bank's growth problem - Bain & Company

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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 Sigma principles to improve the credit process. The resulting rule-based credit policies and faster approval process helped the client delegate more responsibility to front-line employees, reduce processing time and increase accuracy.

  • min read

At a Glance

  • 30% reduction in time required to approve credit applications (with fast track deals)
  • 10-15% reduction of deals requiring approval by central credit head
  • 25% reduction in applications requiring rework

The Full Story

The Situation

As the residential property market slowed, local banks shifted their focus to commercial banking. However, credit issues were a major constraint to growth of the business.

  • Credit issues included credit processes, policies, capabilities and culture
  • Problems existed throughout the organization, from sales force and front line credit approvals team to central group credit

Commercial Bank Co.* engaged Bain to help develop a growth strategy to increase the speed, accuracy and efficiency of credit processes and decision making.

Our Approach

Bain applied Lean Six Sigma principles to improve the performance and efficiency of credit process.

Our Recommendations

Bain recommended rule-based credit policies with faster approval process to enable growth, reduce processing time and increase accuracy.

The Results

Commercial Bank Co. implemented Bain's recommendations, along with metrics to track improvements and change management processes to ensure success.

 

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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