Milwaukee. December 12, 2010. ProcessArc, Inc. has entered into an agreement with Filene Research Institute to establish how Lean Six Sigma can be leveraged to offer credit unions better performance in an increasingly competitive marketplace. “The financial crisis showed that even the best-run credit unions need to take a hard look at organizational efficiency. But in the competitive consumer finance market, nobody can afford to sacrifice quality in the name of cost savings. That’s why we’re so excited about the rigor and expertise that ProcessArc will bring to the credit union system,” says Mark Meyer, CEO of the Filene Research Institute. ProcessArc’s research paper is expected to be published in the second quarter of 2011.

Credit unions have been facing downward pressure on profitability for several years. Compared to banks, their efficiency ratio is lower by approximately 35%. This directly translates to a substantially lower Return On Equity (ROE). The need for increasing operational efficiency is imperative. “We have had first hand experience in successfully applying Lean Six Sigma to the banking sector. We are now excited to demonstrated how this methodology can also assist Credit Unions address their operational and financial challenges head on.” says Sheila Shaffie, Co-founder of ProcessArc, Inc.

Within the financial services sector, the case for adopting Lean Six Sigma has been made in numerous publications with evidence of increased profitability. However, when it comes to Credit Unions, there is little research-backed information that can be utilized and acted upon by executives. This research aims to help credit unions understand how Lean Six Sigma has been leveraged by their peers and competitors to reduce operational cost, while improving service level and member loyalty.

About Filene: 
The non-profit Filene Research Institute is a consumer finance think tank serving the North American credit union system of 100 million members and $950 billion in assets. Filene publishes objective research and fosters consumer-focused financial innovation. The Institute collaborates with leading researchers and academic institutions worldwide.