Delivering Six Sigma Accuracy of 99.9986% in Lockbox Process
Overview.
A prominent U.S. Top 20 Retail/Commercial Bank faced challenges in their lockbox operations, struggling with uncompetitive pricing, missed deadlines, and processing errors. Coforge's expertise transformed their lockbox function, delivering significant cost savings, improved quality, and operational efficiency.
The key business challenges encountered by the client included:
Uncompetitive Pricing: The bank's existing lockbox offering lacked competitive pricing, hindering their ability to attract and retain customers.
Inconsistent Service & Missed Deadlines: The bank grappled with inconsistent service quality and missed guaranteed deadlines, impacting customer satisfaction.
Processing Errors & Penalties: Processing errors resulted in penalty payments to customers, further eroding profitability.
Solution.
Coforge implemented a comprehensive solution to streamline the bank's lockbox operations, encompassing the following:
Centralized Workflow Management: We established standardized queues for lockbox processing, ensuring a more efficient and organized workflow.
Rapid Knowledge Transfer & Training: A combination of instructor-led and interactive training facilitated a quick transition of knowledge to the new team, enabling them to oversee a majority of retail and wholesale lockbox volumes within 120 days.
Remote Migration & Business Rule Automation: The successful remote migration with 29 FTEs involved the creation of automated business rules in the database for each lockbox client. This automation ensured faster processing and guaranteed turnaround time of just 2 hours.
Scalability & Efficiency: The solution facilitated the efficient servicing of over 400 retail and 3600+ wholesale lockbox customers by a team of 150+ FTEs operating from two locations. The team processed a staggering 4 million retail and 2.8 million wholesale items per month.
The Impact.
Benefits Passed on:
LOB saved annualized $1.6Mn by outsourcing
Team onsite headcount reduction (40 FTEs)
2020: 68 FTEs -> 2021: 53 FTEs
2022: 41 FTEs -> 2023: 28 FTEs
Improved quality levels:
From 4.7 to 6 sigma (99.9989%) in Retail lockbox
From 4.0 to 6 Sigma (99.9998%) in Wholesale lockbox
At overall lockbox level perspective improvement from 16 DPM in 2006 to 3.4 DPM currently
