The banking operations across the country appear as a maze to people due to their complexities. Banks have taken to brand pushing and marketing strategies to overcome these issues. However, these have a limited leverage. The most important aspect would be to map out the value stream of the target customer. This will ensure a sustained competitive advantage. The article explores the current scene in Indian Banking with the objective of strongly suggesting the use of Lean Concepts in the Banking sector.

The challenges in the 21st century are enormous for the banking sector in India, and bankers have taken to use Technology allowing customers to transact electronically with them and some even positioning themselves as one-stop financial shops. This will, no doubt, appeal to a segment of the customers. The same segment will also be attracted by the availability of new products and services.

Just as Companies throughout the World are trying very hard to make their businesses more responsive to customer needs, banks also are falling in line, both in terms of speed of response and ability to provide innovative products that meet customer needs in a way which provides for the satisfaction of target customer. This has forced banks to rethink on their internal processes so that the process also meets the Value definition of the customer. Lean Concepts helps us to do this. The first part of the article helps us to understand Lean Concepts and the terms used and the second part of the article details briefly various processes in a bank and applicability of Lean Concepts.

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