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Help Selling Six Sigma to a Loan Company

Six Sigma – iSixSigma Forums Industries Financial Services Help Selling Six Sigma to a Loan Company

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  • #54558

    Layman
    Guest

    I work for a loan company and I’m trying to sell six sigma to them for myself. We have an analytics dept, training dept and a BA, how can I sell this product to them ? Can anyone give me an example of how six sigma has made a difference to your company in the loan market? Thanks

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    #196070

    Katie Barry
    Keymaster

    @Paull — You might want to take a look at two of our content sections: 1) New to Six Sigma > Getting Started https://www.isixsigma.com/new-to-six-sigma/getting-started/ and Operations > Financial Services https://www.isixsigma.com/industries/financial-services/.

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    #198393

    JB
    Participant

    @Paull,

    I think the best way to sell it, is to do it and show the results. If you know DMAIC or some similar process improvement methodology I really think the best way to build support is to pick a high-value, high-visibility, high odds of success project, gather a team and knock it out.

    The LSS system works, it’s just a matter of working the system (quote stolen from ?).

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    #198394

    Shelby Jarvis
    Participant


    @Paul

    You may be able to benchmark large banking examples of LSS. Bank of America utilizes Six Sigma. I’m not certain how available they make the details.

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    #198399

    Jim Ha
    Participant

    @Paull,

    Areas on loan processing that apply six sigma and lean are
    1. End-to-end Turn Around time improvement of the loan from submission to disbursement to applicant
    Use of Process Mapping or Value Stream Map and process streamlining would be useful.
    Look for opportunities for customization of processes , based on customers segments.

    At high level the process look like this
    Submission -> Documents review-> Credit assessment –> Approval process –> Disbursement

    Reducing lead time of end-to-end loan processing means customers are disbursed faster, and results in faster payback by customer (installments starts a few days earlier or a few months earlier).
    Dollar and cents wise – especially when volume (applicants) is high, faster lead time could mean opportunity to gain more interest income by the company.

    2. Standardization of governance process at approval phase. Approval is delayed typically due to multiple approval requirements. Consider operational risks when simplyfying process at approval

    3. Streamlining documents requirements. Customers tend to get confused of documents requirements

    I am not sure if your scope also involved loan products developments. There could be opportunities for six sigma there.

    Good luck

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    #198407

    Norbert Feher
    Participant

    Hi,

    Although I was not involved in a classic loan company six sigma project, I worked on several transactional problems.

    I propose You to gather some data regarding to key indicators:
    – lead time of loan approvals
    – number of rework loops per contract
    – number of errors per application
    – bad debt / non payment ratio after setting up a contract
    – number of touches per application:-)

    I could imagine several tools:
    – VSM and bottleneck process analysis for the whole process
    – Poka Yoke “map” for the process errors
    – Benchmarking (Company vs. main competitor, company vs. target, company vs. the same company 5 years ago)
    – Application approval gate review checklists
    – Scatter plots (groupped by industry, loan amount, based on Z score (liquidity related and not the classical six sigma Z score), etc.

    Based on the proposals Lean and Six Sigma go hand in hand again:-)

    There are some very useful case studies through the internet.

    Have a nice day!

    Norbert

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    #198427

    Mike Carnell
    Participant

    @Paul We have done a few financial institutions. We may be able to help you with this. If you are interested you can contact me off line at [email protected].

    If you want to do this on your own there is a lot of data around GE Capital that can help.

    Good luck

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