Optimizing Resources for Banking Operations

Background


A private bank was planning large scale increase in the number of branches across the country. This increase in operations would require the bank to recruit on a large scale and then undertake a training exercise for these new employees. Senior management at the bank wanted to understand if it would be possible to re-deploy existing staff across new branches thus optimizing the need for new manpower. The bank engaged Parikar to carry out a study of productivity across its branches and make recommendations to optimize staffing.



Methodology and Analysis :


Parikar created multiple small teams in order to observe operations in various branches of this bank. The branches were chosen in such a way that a representative sample of operations was covered including urban, semi-urban and rural geographies.


An expert on statistical measurement guided these teams. These teams took systematic observations of time taken for activities after creating a uniform, comprehensive framework covering the entire gamut of branch banking. This framework allowed Parikar to create a time series of observations for each of the branches thereby making it possible to compute staffing requirements at different points in time during a work day. A statistical validation of data observed was carried out before beginning analysis.


Parikar's team then compared the effort required for each time interval with the staffing available for the corresponding period to arrive at recommendations. The analysis carried out included a study of variation in productivity across branches for similar type of work and was aimed at instituting a standardization drive across branches within the bank.


The team helped the bank arrive upon a standard process for high volume activities within branches and finally made recommendations related to staffing requirements on the basis of deployment of standardized processes across regions keeping specific regional and customer specific variations in mind.




Results


This optimization study has helped the bank in standardizing its core processes and has helped identify opportunities for redeployment of existing staff. It is estimated that up to 20 percent of the present staff can be re-deployed in new branches, reducing the spend on new manpower and significantly shortening the learning curve for new branch personnel.


Parikar's engagement has also led to identification of numerous process improvement opportunities which will lead to an enhanced customer experience, positioning the client to compete better in a very demanding business landscape.