The Banking Factory: How All Roads to Digitization Start (and end) with Standardization

 

More available factories:

 

Lending Fulfillment Factory – Shows how to “industrialize” critical loan fulfillment tasks—with your current technology—to:

Close more loans – faster & with fewer post-close corrections

  • Upgrade servicing & customer experience
  • Boost operating leverage & profitability

Back office factory – An outlined time-tested strategy to reduce your reliance on core technology providers—and unlock massive gains in:

  • Operating Leverage and Employee Productivity
  • Processing Speed
  • Work Accuracy
  • Customer Experience

Lending Sales Factory – Explains how to rapidly unlock profitable loan customer acquisition growth for your bank:

  • Cross-sell existing customers with predictive profiles
  • Identify new commercial lending prospects & automate marketing outreach
  • Reduce “DOA” loan proposals & margin “leakage”

 

Your RPA-Enabled (& Standardized)  “Factory” Overview Begins Here!

Your “factories” already exist. They’re simply under-standardized.

We’d like to take you on a brief “tour” of the typical banking “factories.”

See if you recognize yours!

1. Branch Network Factory: In-person transaction, sales, and service

 

The role of this “factory” is to handle in-person transactions, sales, and service—including drive-throughs and ATMs.

In a classic industrial network, each factory is located close to its essential resources and high-potential markets: customers, labor, transport hubs, etc.

Are your branch network “factories” ideally positioned to capture and service profitable growth?

And industrial factories are staffed based on planned production volumes. The “workflow lines” are “balanced.” Everyone knows the objectives: Zero wasted effort. No idle time. No scrap product. No rework. Sure, these goals are aspirational, but they deliver continuous gains in productivity and quality.

How well does your retail branch network footprint align with the likely demographic growth?

How does each branch staffing plan align with the predictable transaction “production” required?

Are branches over- or under-staffed?

Are the hours of each branch fine-tuned to predictable customer traffic—in real time?

Are you aligning product promotions with the likely audience for each branch?

2. Lending Sales Factory: Marketing, prospecting, and selling processes

Think: What’s the ideal input, or “raw material,” for this factory? Rigorously qualified, prioritized prospects for your bank’s products and services, located in the market segments where you hold a competitive advantage.

Conversely, what “raw materials” should get rejected at the inbound “receiving dock”? Exactly the opposite: Random, “hope-based” leads.

The typical bank lending sales “factory” possesses a rich, untapped “inventory” of data on existing customers, their profitability, industries, and locations. Use these to prioritize (and automate!) marketing, prospecting, and selling processes. Even the highest-performing Relationship Managers, armed with the latest CRM technology, typically lack the resources and insights that define the best- and worst-performing:

    • Products
    • Prospects
    • Customers
    • Producers

That’s costly: First, roughly 20 percent of all business is unprofitable. Second, manual prospecting is slow, expensive, and inefficient. Combine these two facts, and you’re paying top dollar to prospect for unprofitable business! Do less. Earn more!

3. Lending Fulfillment Factory: Eliminating mistakes, redundancies, and human error

Could you imagine a car factory where nearly half of the parts arriving on the assembly line were already defective—and required repair by the assembly workers?

But in the intangible world of banking knowledge work, this is exactly what happens in lending fulfillment. Even on your best day, 35 percent of your commercial loan applications arrive “not in good order” or NIGO—an avoidable situation that results in costly errors, delays, and customer frustration.

And what does a bad day look like? Eighty percent NIGO!

Wouldn’t you love to eliminate those inbound mistakes and redundancies, i.e., the NIGO scrap pile?

Wouldn’t you love to automate a ton of this process?

4. Back Office Factories: Core system integration with robotic process automation

You’ve centralized that back office. Smart, dedicated workers toil daily to “feed the machine”…

No, make that “machines.” Lots of them. Core systems. “Miracle” applications. That don’t talk to each other. Creating mountains of mindless sit-at-the-computer work: checking, reconciling, scraping, copying, pasting.

Your employees are “connectors”—human glue.

    • Do you think they enjoy this?
    • Do you think those core-platform providers will finally integrate their offerings? (Or reduce their prices?)

Here’s a hint: The solution to this “production-line bottleneck” isn’t entirely human…

5. Support Group Factories: Eliminating rework, reconciliation, and ad-hoc reporting

Your bank runs a variety of “support group factories.” The Finance Factory is one of the most important examples. This is your bank’s “reporting factory.” It needs to run like clockwork. But instead, it’s a deadline-sweating, fire-fighting epicenter of chaos: Rework, reconciliation, and ad hoc reporting.

    • Where’s the visibility?
    • Where’s the uniformity?
    • Where’s the automation?

The Finance Factory should be turning out profitable “products” that help managers reduce margin leakage from unprofitable products (think loan spreads); costly, unproductive producers; and under-performing branches.

These “products” should laser-guide the efforts of your Lending Sales Factory.

Finance should be the simplest factory in your bank. It should be harnessing that untapped inventory of customer and product data gathering dust in your core systems. It should already be humming along smoothly, with minimal staffing, and never missing a beat.

You know it isn’t. So what’s missing…?

Run your bank’s “factories”. . . like factories!

What do you and Henry Ford have in common? The timeless opportunity to standardize. That’s where the ideas for factories—and work automation—are always born. Whether it’s mechanical or digital automation, whether it’s manual or knowledge work, it all begins with standardizing the activities for “machinability.”

It’s not impossible. In fact, it’s straightforward. As the industry’s sole standardization specialist, The Lab can help you turbocharge these “factories,” through our patented Knowledge Work Standardization® methodology.

This eliminates the rework, redundancy, and disorder that drag down performance and customer experience. It replaces tribal knowledge and rules-of-thumb with best-practice standards that slash costly variance.

And it paves the way for jaw-dropping business intelligence (BI) visualizations that empower instant, inarguable decision-making. And robotic process automation (RPA), or bots, that not only handle the drudge work with speed and accuracy, but provide a game-changing advantage in everything from processing to prospecting.

Take a tour of your “future bank factories”

Want to see how The Lab has been transforming bank “factories” for 25-plus years—and how we can help yours to “boost production,” too?

It’s easy. We can show you in a simple 30-minute screen-sharing demo.

You’ll see how we accomplish all this remotely, from our U.S. offices in Houston. You’ll see how our results self-fund in six months or less, guaranteed.

Simply call (201) 526-1200 or email info@thelabconsulting.com to book your no-obligation 30-minute screen-sharing demo today!

 

 

 

 

 

Robotic Process Automation for your business, from start to finish.

Contact us now to speed up your RPA analysis, use case development, and implementation.