Business Process Identification and Redesign for ATWIMA RURAL BANK(ARB)
1. Business Process Identification
ATWIMA RURAL Bank (ARB) is one of the rural banks in Ghana, offering range of financial services,
including retail banking, rural banking, loans, and savings. The key business processes in ARB include:
1. Customer Onboarding: Opening new accounts for individuals and businesses.
2. Loan Processing: Handling loan applications, approvals, and disbursements.
3. Transaction Processing: Managing deposits, withdrawals, and transfers.
4. Customer Support: Providing assistance through branches, call centers, and digital channels.
5. Compliance and Risk Management: Ensuring regulatory compliance and managing financial risks.
2. Problem Identification
One of the critical problems in ARB is inefficient loan processing. The current loan approval process is
slow, manual, and prone to errors, leading to customer dissatisfaction and lost business opportunities.
The key issues are:
- Manual Documentation: Customers are required to submit physical documents, which delays
the process.
- Lack of Automation: The loan approval process involves multiple manual steps, including
credit checks, document verification, and approval workflows.
- Poor Customer Experience: Customers often complain about long waiting times and lack of
transparency in the loan approval process.
- High Operational Costs: The manual process increases operational costs due to the need for
more staff and resources.
3. Redesign Methodology: Lean Six Sigma
To address the problem, we will use the Lean Six Sigma methodology, which focuses on improving
efficiency, reducing waste, and enhancing customer satisfaction. The steps are as follows:
Step 1: Define
- Problem Statement: The loan approval process at ARB is slow, manual, and inefficient, leading to
customer dissatisfaction and high operational costs.
- Goal: Reduce the loan approval time by 50% and improve customer satisfaction by streamlining the
process and introducing automation.
Step 2: Measure
- Current Process Metrics:
- Average loan approval time: 10–14 days.
- Data Collection: Analyze the current loan approval process, including the time taken at each step,
error rates, and customer feedback.
Step 3: Analyze
- Root Cause Analysis:
- Manual Processes: Physical document submission and manual verification slow down the process.
- Lack of Integration: Disconnected systems for credit checks, document verification, and approval
workflows.
- Inefficient Workflow: Multiple handoffs between departments lead to delays.
- Limited Digital Tools: Customers cannot track the status of their loan applications in real time.
Step 4: Improve
- Proposed Solutions:
1. Digitize Document Submission:
- Introduce an online portal and mobile app for customers to upload required documents.
- Use Optical Character Recognition (OCR) technology to automatically extract and verify data
from documents.
2. Automate Credit Checks:
- Integrate with credit bureaus to automate credit score checks and risk assessments.
3. Streamline Workflows:
- Implement a Loan Management System (LMS) to automate approval workflows and reduce
manual handoffs.
4. Real-Time Tracking:
- Provide customers with real-time updates on their loan application status via SMS, email, and the
mobile app.
5. Staff Training:
- Train staff on the new digital tools and processes to ensure smooth adoption.
Step 5: Control -
Monitor Key Metrics:
- Track loan approval time, customer satisfaction, error rates, and operational costs post
implementation. - Continuous Improvement:
- Regularly review the process and gather customer feedback to identify further areas for
improvement.
- Standardization:
- Document the new process and ensure all branches follow the standardized workflow.
Expected Outcomes
1. Reduced Loan Approval Time: From 10–14 days to 5–7 days.
2. Improved Customer Satisfaction
3. Lower Operational Cost
4. Increased Loan Volume: Faster processing will attract more customers, leading to higher loan
volumes.
Implementation Plan
Phase Activities Timeline
Phase 1 Develop and launch the online portal and mobile app for document 2 months
submission.
Phase 2 Integrate with credit bureaus and implement the Loan Management 3 months
System (LMS).
Phase 3 Train staff on the new processes and tools. 1 month
Phase 4 Pilot the new process in select branches and gather feedback. 2 months
Phase 5 Roll out the new process across all branches. 3 months
Handling the Problem
To handle the problem of inefficient loan processing, we will:
1. Engage Stakeholders: Collaborate with IT, operations, and customer service teams to ensure
alignment.
2. Leverage Technology: Use digital tools like LMS, and real-time tracking to automate and streamline
the process.
3. Focus on Customer Experience: Provide real-time updates and a seamless digital experience to
improve customer satisfaction.
4. Monitor and Improve: Continuously track performance metrics and make adjustments as needed.
Conclusion
By redesigning the loan approval process using the Lean Six Sigma methodology, ATWIMA RURAL
BANK (ARB) can significantly improve efficiency, reduce costs, and enhance customer satisfaction. This
will not only address the current problem but also position ARB as a leader in digital banking
innovation in Ghana.
