Annualized $1.6M Savings & Delivering Six Sigma Accuracy of 99.9998% in Lockbox Process.
Overview.
A super-regional Top 20 U.S. Bank offered check and payment processing with over $150B in assets with a full suite of products and services also offered check processing for retail and wholesale customers. The Bank’s customers are from all industry sectors – retail, transportation, hospitality, healthcare and other industries which require regular check deposit transactions.
The Bank was struggling with the lockbox service offering as it could not compete with other Banks who provided a lower turn time while making fewer errors in processing checks. The offering was also unprofitable because of losses from penalties as the Bank could not meet its committed service level agreements.
The challenges:
- Bank’s inability to offer competitive pricing in lockbox
- Could not meet guaranteed deadlines
- inconsistent quality of service with frequent errors
- Check processing errors meant penalty payments to customers
Solution.
Coforge BPS, using process management and reengineering expertise, suggested several changes to the workflow and processes:
- Instructor-led & Interactive training with Lines of Business thereby enabling quicker transition of knowledge
- This allowed Coforge BPS to move most check processing volumes in Retail & Wholesale lockbox within 120 days (about 4 months) to its experts
- The ‘remote’ migration was initiated just with 29 FTEs
- Business rules created for all lockbox clients enabled quicker processing and guaranteed turnaround time of 2 hours
The Impact.
Coforge BPS could service the Bank’s 400+ Retail lockbox customers & 3600+ Wholesale lockbox customers. The Coforge team of just 150+ experts was spread across 2 locations for business continuity safeguards. The team was processing 4 M Retail items & 2.8 M Wholesale items per month.
$1.6 Million
In annualized savings for the Line of Business
99.9989%
Accuracy (4.7 to 6 Sigma) in Retail Lockbox processing time (from 14 to 7 hours)
99.9998%
Accuracy (4 to 6 Sigma) in Wholesale Lockbox processing
3.4 Defects Per Million (DPM)
Now form16 DPM at the start of the project
Call to Action (10-15 words):
When check processing systems throw up exceptions, it requires experienced professionals to address the exceptions quickly and accurately. Coforge BPS has experts who are fast, cost-effective, and can offer near six-sigma accuracy in
check processing. Connect with our Lockbox experts today at CoforgeBPS@coforge.com for a quick, comprehensive solution.
Client Review/Project Manager Quote.
I wanted to reiterate my appreciation for your team. Their ability to demonstrate flexibility to process the increase in volume and maintain SLA is tremendous! This is a great example of your commitment to go above and beyond to ensure volumes are processed timely and to a high level of quality. - Manager, Check Services
