Bank Reengineering & Expansion

Subsidiary of Large Government Owned Bank


Once the largest branch network in the country, this bank sat dormant for many years as its Parent Bank invested little in continued growth.

The Bank had a limited number of products to offer, relying mainly on deposits, and was left with seriously delinquent loans that had been neglected by the previous management team. The bank was funded primarily from large deposits held by the Parent bank. A sale of the bank would bring little due to the condition of the balance sheet. The Parent bank decided to reinvest in the bank, take advantage of the expanding market in which it was located, and improve the value of the bank.

A new management team was put in place to improve the value of the bank by increasing the volume of both assets and liabilities while expanding the product set and improving the services offered to customers. Early steps were taken by the new management team to rectify problematic loan portfolio. The physical state of the branches, while very old, were enhanced with minor upgrades.

The core system being used was a rigid, home-built system that was in need of replacement.  The bank was in the early stages of replacing their system with a recognized core banking system.  All user requirements were needed for current and future products.

LoBue was asked to conduct a review of the business and conduct a program to improve efficiency, expand sales and improve the management process.


Branch Network

  • Install a new branch organization and provide training to all branch staff to process all servicing transactions in the branch.
  • Reduce service times by reducing process requirements in the branches
  • Install a sales function, a sales management process, and introduce cross selling initiatives and sales incentives
  • Move operational activities out of branches and transition staff to sales and service functions
  • Provide sales training throughout the branch network and provide sales aids for all products
  • Develop new job descriptions, process flows and capacity plans for all activities

Corporate Banking

  • Segment Corporate Customers and assign Regional Credit Marketing Officers
  • Develop a customer relationship management process to ensure regular customer contact

Central Operations

  • Centralized branch operational and credit activities
  • Utilize processing standards and KPI’s for processing positions.
  • Develop new job descriptions, process flows and capacity plans for all activities.

Credit Processing

  • Establish a Retail Credit Department to focus on the processing of retail credit applications.
  • Review and refine the credit process to provide customers with immediate funding of loans upon completion of documentation.
  • Reduce customer signature requirements in the credit application process.

System Conversion

  • The user requirements for the new system were developed by the team to ensure the new processes and process changes resulting from the recommendations were properly reflected and supported by the new system.
  • Reporting requirements for all products and business areas were developed, including sales and service tracking.


Program initiatives resulted in significant operational and sales improvement, supporting the transformation to a profitable bank capable of growing significantly and steadily.

  • Significant improvements in the sales process were demonstrated through a sales tracking process. The systematic tracking process incorporated the needs for daily, weekly and monthly reporting of actual vs. budgeted sales and incentive tracking for all products across all branches.
  • Overall productivity improvement of 23% as operational activities were centralized and branch processes were improved.
  • Sales and Service training and the realignment of functions in the branches resulted in a 34% increase in customer-facing effort.
  • New core system conversion was performed in tandem with the sales and service activities and new products were able to be rolled out immediately upon conversion.