|
|
| 
|
|
BANKING
The Business Problem
A multi-national
bank had made an entry into a foreign country as it had expected
the financial sector to grow strongly. After making a presence
in the foreign market and finding the market favorable for expansion,
the bank decided to aggressively expand the market. The bank
introduced lucrative new schemes on all products to capture
the market. |
 |
|
Within a few months the bank was able to capture significant
market and emerge among the top three players in that country.
With the increase in the customer base, the bank's problems
also started. Customers complained about not receiving the
appropriate documents, funds not being applied, credit card
related issues, etc. The final nail on the coffin came when
a "High Worth" individual wrote to the president
of the bank seeking a compensation ($50,000) for the wrong
application of a high value deposit ($4,000,000). Fearing
a lawsuit, the bank decided to pay the compensation. The President
asked his Quality Head to look into these problems and bring
them under control. The Quality Head being an ex Black Belt
decided to put Six Sigma to use. |
 |
The Benefit Analysis
The quality
head decided to understand the financial impact of this problem.
He collected the various kinds of problems reported and going
by the previous settlement, calculated the future damages around
$272,000. He also put the legal liabilities around $1,500,000.
The President of the bank after seeing the above numbers was
happy that he had put the right person for the job. |
|
Problem Identification
The Quality head formed an Action
Team of members from all branches and parts of the bank to
get a complete picture of the problem. After collecting huge
amounts of data and analyzing them, he found that most complains
were related to problems that occurred because of incorrect
or wrong information about the account holder.
Root Cause Analysis
The Quality Head did a further analysis
to find that information was wrong in the system because it
was wrongly entered from the application forms. This was because
the information was usually hand written by the sales executives
and all of them did not have a good handwriting or took the
time to enter the details well.
Solution
The Quality Head suggested recording
the data on the form through shading of letters instead of
writing them to avoid any legibility issue.
|
Result
The solution immediately
started showing benefits. The customers acquired through the
new forms had no issues regarding their services as all their
information was correct. This new solution also automatable.
This resulted in huge saving in time taken to open an account. |
 |
 |
 |
|
