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Credit Application

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Viewing 10 posts - 1 through 10 (of 10 total)
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  • #24415

    Searching
    Member

    If anyone has done any project on reducing cycle time between credit application to credit decision for a financial services institution, do you mind sharing your thoughts, best practices, storyboard, project deck etc. I am currently working on a similar project and would like to do some background reading on this type of project. Thanks! 

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    #58601

    Bart
    Participant

    I have done :-)
    Bart

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    #58603

    Searching
    Member

    Do you have a email address so I can discuss with you off the line? Thanks!
     

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    #58604

    Saherngu
    Participant

    Thanks  for your enlightening words of wisdom. Folks don’t waste your time with delegate cause you’ll be wasting your time. 
    By the way, get back to pushing sub prime mortgages !

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    #58609

    Henry_CA
    Participant

    I would be interested in reading any response you may have recieved to your posting. Please email me at
    [email protected]
    Thank you in advance.
    Henry_CA

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    #58611

    Searching
    Member

    Never did rec’d anything. Probably not a lot of projects out there pertaining to this topic. I’ll keep searching.

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    #58640

    BB Finance your
    Participant

    We have done extensive work in this area.  It might depend on your industry but we did considerable amout of lean- take out NVA steps, consider rework, develop decision matrix, etc…  being honest it wasn;t alot of Six Sigma more practical knowledge and upper mgmt buy in.

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    #58641

    Searching
    Member

    Thanks. I’ve used similar approach in dealing with this – using Lean to take out wastes, standardize and simplify process steps etc. Wonder if you can share some of your findings? If you have additional information, can you please send it to [email protected]? Thanks!

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    #58643

    TMinor
    Member

    Dear Searching:
    I have just come across your query and would like to offer these suggestions.
    1) (Assuming that the Credit Approval process is part of a larger process, i.e Loan Origination) Complete a cross functional process map of the service or product.
    2) ID hand-offs between the main process and credit.
    3)Ensure that you have metrics in place to capture the overall  process cycle time and “Credit app” to “Credit approval” cycle times.
    4) Complete a SIPOC for Credit.
    5) Determine CTQ’s.
    6) Compare CTQ’s to metrics measured: do the metrics measure the CTQ’s?
    7)Benchmark credit cycle times with comparables.
    8) After this, if your Credit cycle times are not what you expect or do not meet your business requirements, you must determine the root cause(s).  Start by using the 5 “Why’s”.  Another helpful method may be to audit your credit process & verifying the process steps — perhaps this will help to illuminate any special causes negatively impacting your cycle times.
    I hope this is helpful to you …

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    #58651

    Anakin
    Participant

    Do a spaghetti map.  In working with a large financial institution I saw an effort that realized a home mortgage application traveled nearly three miles before being approved.  Three miles doesnt sound like much?  It never left the same building. 
    If I remember correctly the fixes were:
    – Identify deal killers early so the file leaves the process.
    – Lean out the physical workspace and flow.
    – Do a better job managing client expectation (tell your bankers a realistic time to get an answer).

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