Welcome to the website that will inform you about increasing your bank's profitability by improving your internal processes.
You arrived here through an Internet search, by hearing our 800 recorded message, or through a referral from one of your colleagues.
This is a "no salesman will call" location where community bank managers can gain a basic understanding of process improvement and then determine if a process improvement program makes sense for their bank.
First, let's look at an example of the ROI of process improvement. If you are a commercial bank, the majority of your profits are associated with your loan pipeline. The calculator above allows you to see the direct financial impact (and payback period) of shortening your loan underwriting and approval process.
Using the calculator takes just three steps:
- Enter your projected loan volume for the next twelve months,
- Enter your current or projected net interest margin,
- Enter the number of days you can shorten your loan cycle with improved process control and oversight,
Then, view the increased interest revenue you will book during that twelve months by shortening your lending cycle.
The first two elements you already know. To determine how long it takes to book a loan, simply track the days between the time the Business Development Officer brings in a valid loan opportunity to the day the loan funds. Everything that transpires between those dates comprises your loan pipeline process. You may be surprised at the length of time it takes.
Shortening the process will deliver at least these benefits: 1) more interest revenue for the bank and 2) earlier cash flow for the borrower - which is why they come to you in the first place.
To learn more about how you can accelerate your processes, just go to the "Tools" tab and explore the information there.
If you would like a free, no obligation discussion on how other community banks are doing this, just send an email to Robert.Hess@TSG.LA and we will contact you to arrange a meeting date.