DOI: 10.5176/2251-1997_AF-33
Authors: Jürgen Moormann
Abstract:
Competition in banking is challenging and has become even more intensive in recent years. As a consequence, bank managers are looking for ways to reengineer their busi-ness processes and, thus, to increase their efficiency in produc-tion. This paper proposes a new methodological approach – based on Data Envelopment Analysis – for the analysis of business process efficiency. This approach allows the intrinsic benchmarking between transactions of a business process. Within a case study, a typical banking process is analyzed: settlement and clearing of securities. The analysis is per-formed by utilizing a very large dataset of actual operational transaction data from one of the largest banks in Europe. The results document not only the existence of inefficiency but also a high variance of process performance. This research indi-cates that substantial inefficiencies occur due to the process execution performance.
Keywords: banking; benchmarking; data envelopment analysis; efficiency measurement; process execution; production efficiency
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