The client, a Fortune 1000 and S&P 500 company with an asset book value of $33 billion, is a leading brand in the US financial services industry. Its business portfolio includes more than 40 banks, trusts, brokerages, mortgages companies and a credit card processing unit.

Firstsource was engaged to create efficiencies in remittance processing, which impacts funds flow and influences customer satisfaction, by reducing transaction turn around times (TAT) and transaction error rates.

Firstsource significantly improved TAT and reduced error rates to historic lows by implementing operational excellence and a series of Six Sigma processes.

Based on its analysis, Firstsource proposed a solution incorporating the following:

Expanded operational window

Firstsource recommended replacing the client’s 5/7 single shift processing facility with a 24x7 processing capability. This would enable handling peak processing volumes, ensuring that customer payments were posted on a timely basis. A remote site for check amount keying and central processing was established to implement this.

Superior knowledge management

• Create a knowledge database of proprietary client business rules and customize staff training to develop domain experts. This would optimize handling of complex form types to provide consistent quality and help increase customer satisfaction
  
• Implement a governance structure for management to measure and report quality metrics while optimizing cash flow, customer satisfaction and cost containment

Transition methodology

Firstsource proposed a phased approach to solution implementation and a pilot was initiated to test the approach. Based on the successful pilot, the process was ramped up to cover the entire function of keying in remittance processing at the remote site. The full scale implementation involved training teams at the remote site, parallel operations at dual locations and implementation of six sigma quality measurement tools and improvement procedures.

Firstsource consistently met or exceeded all evaluation criteria and completed the project implementation with a sustained high level of accuracy.

Implementation of Firstsource’s recommendations and methods resulted in measurable and significant improvements and provided the following benefits:

• Improved timelines – the client is now able to complete all remittance processing activities before the stipulated deadlines leading to faster clearing and settlement, and improved customer satisfaction in its services
  
• Cost savings – the client’s cost structure has been optimized
  
• Operational excellence and accuracy – Firstsource achieved an overall accuracy rate greater than 99.97% percent