Key takeaways
- • A 32-day onboarding cycle contained only 45–100 minutes of value-add work.
- • 85% of applications needed rework, and only 30% of the 250+ data fields collected were actually used by operations.
- • A universal application, business-rule workflow and predictive risk ranking unlocked a $50M efficiency opportunity.
The challenge
A global financial institution with more than a century of success and top industry ratings had a problem its clients were starting to notice. The products were well regarded, but the paper forms and lengthy applications were not, especially for an increasingly digital-savvy customer base.
E-commerce giants had raised customers' appetite for fast, simple online transactions, and services like TurboTax had shown that even complex, paper-heavy transactions could be done from a phone. The institution asked ProcessArc to view its client onboarding process through a Lean Six Sigma lens and guide it through a digital transformation.
What we found
We walked the process end to end, from initiating an application to an active, funded account, and collected the operational and financial data needed to measure it.
- 32-day cycle time, of which only 45–100 minutes was value-add work
- More than 85% of applications required rework and potential client recontact
- 250+ data fields were collected, yet only 30% were deemed critical by operations
- 10 departmental hand-offs across 12 systems, with eight inspection points
More than 45% of labour effort went on non-value-add activity: contacting clients for missing information, data entry, inspection and follow-up. Most clients bought several products, and each needed its own application, even though 85% of the data was identical.
"If it's not used, why is the data collected?"
Our approach
The transformation focused on three things: what data is collected, how it is collected and delivered to operations, and how applications are risk-ranked.
- A universal application. One form for all product types eliminated duplicate fields, making applications easier to complete and less error-prone.
- A digital application process with business rules. A dynamic questionnaire, started by the client or the financial representative, generates every required form ready for e-signature. A workflow system compiles the package, and the data auto-populates downstream systems.
- Predictive modeling. Using historical performance, a model risk-ranks incoming applicants. Low-risk clients are activated automatically with no manual review, cutting their onboarding from 30 days to two.
Results
- Application submission-to-decision time reduced by 20 days
- Number of touchpoints reduced by 50%
- Probability of missing forms and critical client data reduced by 90%
- A $50 million efficiency opportunity for the institution
The roadmap was delivered in agile sprints over five years, with ProcessArc facilitating consensus building, cultural and process transformation, and updating training and documentation in every sprint.
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.