Key takeaways
- • 45% of back-office process steps added no value to the customer.
- • More than half of all wait time came from branches not supplying the required data.
- • Collecting the right data up front and inspecting early were the keys to recovering $1.5MM.
The challenge
Back-office operations are the most overlooked part of a financial institution. Invisible to customers, they deliver value through the speed and accuracy of every transaction, and they are often riddled with inefficiency, operational risk and inconsistent service.
A bank with an aggressive growth strategy asked ProcessArc to assess whether its processes could scale profitably, starting with account opening.
Our approach
We selected a high-volume and a low-volume branch, and at each a seasoned and a newer representative. Every account type was process-mapped from the branch request to completion in the back office, identifying operational risk points, inefficiencies and cycle times.
What we found
Across more than 50 processes:
- 25% of steps were inspection points propping up ineffective processes
- 45% of steps added no value: rework, waiting and follow-up
- Over 50% of wait time came from branches not supplying the required data
- Customer service agents spent 50% of their time entering data into screens
- 40% excess capacity at some branches while others were bottlenecked
- 28 back-office reports to verify 60 data points, and no performance metrics
The path to $1.5MM
- Define all required information and collect it as early as possible
- Move quality inspections to the start, so defective transactions don't travel
- Eliminate non-value-add steps at the root cause
- Use the existing IT infrastructure to support the refined workflow
Sheila ShaffieCo-founderBusiness transformation leader who honed her skills at three GE businesses: Plastics, Healthcare and Capital. GE Master Black Belt, University of Chicago MBA and co-author of The McGraw-Hill 36-Hour Course: Lean Six Sigma.