Credit card account opening excellence using six sigma methodology

Abstract

Purpose This study aims to expand the current knowledge of the Six Sigma approach in a period of time when there is little direct evidence of the need to improve the credit card account opening process. This is an important but neglected area of focus in the Six Sigma literature. This study explores the extent to which process improvement practices are extended to the credit card department. Design/methodology/approach A case study methodology is adopted in this study to facilitate an exploration of the implemented Six Sigma approach in the credit card department of a leading commercial bank. The process improvement tool used is the define, measure, analyze, improve and control (DMAIC) cycle. Findings The study’s results confirm that the Six Sigma approach improves the quality of the credit card account opening process. So, the Six Sigma approach can account for a reduced number of keying-in errors, resulting in better data accuracy and improved customer satisfaction. Research limitations/implications The authors, in an attempt to render the study results more feasible for data collection, have chosen to focus on the process of the new accounts unit of the credit card department. Therefore, the authors have not taken into account the other units (e.g. transaction processing) of the same department. Practical implications The results of this study will be useful in persuading bank management to evaluate and implement the Six Sigma approach. Hence, this research will assist bank managers with replies to questions, such as: “What impact will Six Sigma have on process-centric improvement, such as the new accounts opening process of a credit card department?” Originality/value Within the literature on the Six Sigma practice, there is little research that focuses on the implementation of this particular toolset especially for credit card departments. This indicates a gap in the field. A new contribution to bridging that gap comes from the analysis of the results for the Six Sigma concept, which addresses the new accounts opening process.

Quality improvement in manufacturing process through six sigma: A case study of Indian MSME firm

“…In this paper, project charter and SIPOC diagram have been used in the define phase. Project charter explains a thorough detail of the identified problems, objectives, and goals of the project along with various other elements like background and rationale of the project, project team, project plan, and project timeline [25,36]. SIPOC diagram documents complete information about the process and their related inputs and outputs [34].…”

“…The pioneer of Six Sigma, Motorola, started its quality initiative programme in 1987. After Motorola, many companies such as General Electric (GE), DuPont, Honeywell, Samsung, Texas Instruments, ICICI adopted Six Sigma methodology for quality improvement [24,25,27].Initial applications of Six Sigma projects were primarily in manufacturing sector, later, diversified in different industries with different objectives. In the literature, enormous work is published related to Six Sigma studies.…”

Yalın Üretimin Bankacılık Sektörüne Uyarlanması ve Bir Benzetim Çalışması

“…Bu araştırmada, doğru uygulandığında yalın düşünce daha iyi süreç verimliliği, daha iyi bir müşteri emnuniyeti sağlayabileceğini ortaya koymaktadır [12]. İslam (2016) yaptığı çalışmada altı sigma metodolojisini kullanarak kredi kartı hesabı açma sürecinde ele almaktadır [13]. Stadnicka ve Ratnayake (2017) hizmet organizasyonlarında performansın arttırılmasına yönelik bir çalışma gerçekleştirmektedirler [14].…”

Improvement of Personal Credit Response Times in a Banking Institution Applying Lean Six Sigma

“…It is verified that among the factors that influenced the total growth of loans to the private sector was the individual client segment, through mortgage credit and consumer credit with 8.8% and 12.5%, respectively, at the end of 2018 [1]. From the results shown in the Table 1, in the placement of consumer and mortgage loans, the financial sector has become a purely competitive environment, and thus, there is a need for banking institutions to have more flexible credit evaluation processes to efficiently meet demand both in response time and in placements [2].…”