It is imperative that leadership take a critical and deep analytical look at their operational efficiency, which drives expenses. It is only through this path that financial institutions will be able to transform their operating procedures and processes to reduce cost and, in the process making the institution more efficient, improving customer experiences and revenue.
The new economics of banking requires much lower back-office costs. In addition, regulators and consumers expect greater transparency, better credit and portfolio risk management, and heavily expedited data processing for customer accounts. Bank leaders are realizing they must take a different approach.
One proven methodology towards process improvement in the banking sector is Lean and Six Sigma. Lean Six Sigma is an improvement methodology, standard of excellence and a management system, that aims to produce the best quality, on-time delivery, and cost, doing so by engaging everybody in the improvement process, treating people with respect, and focusing on customer needs for the long-term good of the institution.