Research On Applying Six Sigma Management Principle To Optimize Credit Approval Process

Domestic commercial banks nowadays are facing strike from expanding customer group, horizontal competition and the interest spreads tightening, with the increasing opening of the market, development of the IT technology and so on. As a matter of factor, turning the traditional development model into a more specific and precise one for building their core competitiveness has already become a consensus through commercial banks in China.The concept of Process Bank, which came from manufacture industry, is aimed to build a procedural management in the bank as the assembly line. And what is more, the Six Sigma management principle, which also derived from the industrial system, had already been adaptive to the banking system after continuous modification. Banks who applying this theorem had successfully increased customers’satisfaction, lower the cost and gain significant profits. That is why so many commercial banks are concentrating on the Six Sigma principle to make their products and services be more perfect.In our country, rural commercial banks are special considering its developing path. The credit cooperative, which is known as the ancestor of the rural commercial banks, had remarkable restrain on the new generations, even if they had tried to build process bank as other commercial banks.During my study in the school, I had an opportunity to take participate into the program for optimizing the credit approval process in JY rural commercial bank. By my own interviews and investigations, I found that customers from this bank were not so satisfied with the efficiency. So it is necessary for the bank to avoid losing customers. Through this program, I applied the basic principle, DMAIC, from Six Sigma, including defining the core problems, measuring data, analyzing underlying factors. After the goals had been set, we set schemes for improving and controlling as well.Now according to the survey, as the program goes on, the level of sigma of JY rural commercial bank had grown up significantly. Meanwhile, satisfaction of the customers had been improved greatly.