Six Sigma in Swedish banking: a case study in the
applicability of Six Sigma from improvements in the loan
process

Abstract: Six Sigma is proved to be an effective way of improving the quality of
processes and products in a wide range of industries. At the major banks in
Sweden, Six Sigma has not yet had a major impact, even though the
methodology has been successfully used in banks in other parts of the
world. In this thesis the applicability of Six Sigma in a Swedish bank is
explored using a case study.

The subject of the case study is the loan process at a major Swedish bank.
The loan process is defined as the activities taking place after the loan
has been disbursed to the customer to ensure the bank’s legal right to
seize the securities used as collateral in the case of a default by the
customer. The loan process is approached using the DMAIC cycle with the
objectives of lower operational risk, less rework and higher customer
satisfaction.

The results of the case study show that Six Sigma can be used at Swedish
banks. There are however problems with the availability of data as well as
the maturity of the organization and the employees’ competences in handling
large data sets. New tools to monitor the loan process and to act on
deviations are developed in the thesis.