Six Sigma in the Banking Industry

Six Sigma is a system that uses data and statistics for measuring quality, traditionally in a manufacturing industry. But now even banks are applying the six sigma model to continuously improve quality and gain a competitive advantage.

The Six Sigma methodology can help reduce the amount of wasted time and resources as well as reduce cycle time to create banking applications. Result is lower maintenance, schedule overrun and development cost.

Bank of America, Citibank and Chase Manhattan are some banks who have adopted Six Sigma.

Core to Six Sigma is DMAIC, which is 1) Define, 2) Measure, 3) Analyze, 4) Improve and 5) Control.

Applying Six Sigma to Banks

Six Sigma allows a banks to monitor and respond to:

• Number of consumer complaints
• How long to process a specific transaction (e.g. loan)
• Delivery of services to customers

Bottom line, the Six Sigma model can help banks reduce transactional mistakes, reduce risks and improve customer satisfaction.

Resources:
1. Financial industry looks to Six Sigma quality process to eliminate mistakes, David Dinell, Wichita Business Journal
2. Bankers steal page from industry to boost quality, Laura Williams-Tracy, Charlotte Business Journal

Links to other Six Sigma resources.

Information Technology for Banks

Banking Technology - Resource for Banks and Financial Institutions
Online resource on information technology solutions for banks and financial companies. Buyer's guide to banking applications, crm, risk management systems and more.

Founded in 1986, Bill Smith of Motorola

Standardize how defects were counted

3.4 defects per million

Reduce errors and improve operating efficiency

Continuous quality improvement