Improving Covenant Monitoring in a Bank: A Practical Lean Six Sigma Journey
In just 4.5 months, a major bank transformed its covenant monitoring process, cutting average response times by over 50% and unlocking an estimated $40.6 million in financial benefits. Using the Lean Six Sigma DMAIC methodology, a cross-functional team tackled workflow inefficiencies, communication breakdowns, and error-prone manual tasks that were slowing down responses to critical credit requests. By streamlining communication, automating response tools, and standardizing procedures, the team reduced turnaround times from 9.78 days to 4.21 and improved process accuracy. More than a technical win, the project also fostered stronger collaboration between departments and laid the groundwork for sustained operational excellence. This project stands as a clear example of how data-driven thinking, the right team, and structured problem-solving can deliver real, measurable results, even in the complex world of finance.