Challenge
The rising interest rate and consolidation in the industry was forcing the lender to drastically reduce its cost structure. Specific challenges included:
- Increasing rate of fraud
- Increasing default rates
- High employee turnover
- Commoditization of the industry and increasing difficulty for differentiation
Engagement
- Assessed the situation using Lean and Six Sigma techniques
- Re-designed building layout and workflow for more efficient loan production
- Instituted "Flexing" teams to better meet demand without increasing headcount
- Conducted pilots in three centers involving 200 associates to work out the bugs
- Trained over 1000 associates using client trainers
Results
- Improved employee productivity by 15%
- Reduced cycle time by 17%
- Reduced error rate by more than 25%
- Saved $25 million annually in operating costs
