What is Consumer Finance?
Consumer Finance companies offer services typically also offered by banks, including mortgages, consumer loans (car, personal and student loans) and credit cards. Consumer Finance has also grown to include payment processing services, such as PayPal and Square. Essentially, consumer finance is a division of retail banking that primarily deals with lending money to individuals. Common customer-facing activities performed by this function include consumer lending, mortgage lending, credit card issuance, payment services and merchant services. Consumer finance groups also perform non-customer facing activities such as company credit risk determination, fraud prevention activities and investigations, loan processing (application processing, underwriting, etc.) and servicing (collecting loan payments, adjusting payment schedules, etc.).
Mortgage Lending Benchmarking ReportBenchmarking Report Bundle
Amount Collected per Collections EmployeeBenchmarking Report
Consumer Finance KPI EncyclopediaKPI Encyclopedia
Consumer Finance Best Practices GuideBest Practices Guide
Consumer Finance Organization Chart TemplateOrg Chart Template
Student Loan Sales (Secondary Market) Workflow Template
Amount Collected per Collections Employee
The total dollar amount collected by the Collections Department, or agency, over a certain period of time divided by the average number of collections employees (including collectors, manage...
KPI Type : Productivity
Formula : Average New Collections Account Size, Amount Collected per Account, Collections Connect Rate, Collections Liquidation Rate
KPI Benchmark Range : $113.5K-$348.9K
Mortgage Loans Serviced per Mortgage Loan Servicing Employee
The total number of mortgage loans in the company's loan servicing portfolio divided by the total number of mortgage loan servicing (includes all core loan servicing sub-functions) employees...
KPI Type : Productivity
Formula : Total Number of Loans in Servicing Portfolio / Number of Loan Servicing Employees
KPI Benchmark Range : 398 - 2,289
A typical consumer finance function is composed of several common sub-functions, or teams, that work together to provide consumer loans (consumer and mortgage loans), credit cards, payment services (e.g., transfers, cash management, etc.) and merchant services. Consumer finance employees are also responsible for numerous back office activities that support customer-facing initiatives (company credit risk determination, fraud prevention activities, and loan processing and servicing activities). Browse our Consumer Finance organization chart page to learn about the roles and responsibilities of each major function. Then, download our org chart template (PDF, Visio, PPT) to plan and support consumer finance operations improvement efforts.
Check out our consumer finance best practices page to view selected descriptions of work methods that have been proven to produce better results (as compared to other, similar methods). Want more? Download our consumer finance best practices guide, which provides a healthy selection of valuable best practices that can be incorporated to improve consumer finance operations. There might not be only one "best" way to perform every task. However, there is always a "better" way.