Lean Service 5.0 in credit decision-making: driving digital transformation and operational efficiency in the banking sector

Abstract

This study explores how LS5.0 can transform credit decision processes in the banking sector, focusing on integrating advanced technologies and Lean principles to address critical operational challenges. The research aims to identify how LS5.0 contributes to improving efficiency, personalising services and promoting agility in a competitive environment and under strict government supervision. A multiple case study was conducted with five large banks in Brazil, covering all regions of the country, including three multinational institutions, to understand organisational perspectives and identify variability in credit decision processes through the adoption of LS5.0. Data collection involved interviews with bank experts and managers from each institution, all of whom were engaged in credit decision-making, providing comprehensive insights into the implementation of LS5.0. The results show that LS5.0 speeds up decision-making by automating data processing and eliminating redundant steps, improving analytical accuracy and reducing waste. However, respondents highlighted challenges such as resistance to change and misalignment between credit and technology teams. Continuous training and collaboration were identified as key strategies to mitigate these barriers. The findings also highlight the need for broader performance metrics beyond lead time, incorporating credit risk and operational efficiency. This research advances academic understanding by demonstrating the strategic potential of LS5.0 to address operational challenges, create customer value and increase organisational competitiveness. The integration of Lean principles with Industry 5.0 technologies offers new perspectives for operational excellence in the banking sector.