KPI Benchmarks : Commercial Loan Officers per Commercial Credit Analyst
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 21
* Is High or Low Best: Higher is Better
Commercial Loan Officers per Commercial Credit Analyst
Commercial Loan Officers per Commercial Credit Analyst measures the number of credit analysts working for the organization relative to the total number of loan officers. This metric is useful in understanding the organizational balance between the number of commercial loan officers and commercial credit analysts needed by a financial institution to effectively process and assess risk related to commercial loans. Keep in mind that, in addition to new loan requests, credit analysts may also process loan monitoring requests for existing commercial loans. Low values for this metric may be indicative of low productivity among commercial credit analysts (i.e., analysts are not processing a large number of commercial credit analysis requests). Such low values may be attributed to a variety of factors, including inefficient application intake processes (from borrowers to loan officers to commercial credit analysts, and everything in between), complex commercial loan origination processes, a lack of communication between loan officers and credit analysts, and/or a high rate of new or existing loans with incorrect or incomplete documentation.
The number of commercial loan officers divided by the total number of commercial lending credit analysts (or credit analysts whose duties include commercial credit analysis) working for the organization at the same point in time. Credit analysts are responsible for analyzing risk related to both new and existing loans managed by the organization.
KPI Best Practices
- Consistent and effective communication between loan officers and credit analysts
- Accurate forecast of incoming loan requests to staff credit analysis/risk functions appropriately
- Audit loan application process regularly to identify bottlenecks and increase staff productivity
KPI Calculation Instructions Commercial Loan Officers per Commercial Credit Analyst?
Two numbers are used to calculate this KPI: (1) the total number of commercial loan officers working for the institution, and (2) the total number of commercial lending credit analysts working for the institution at the same point in time. A commercial loan officer should be considered to be the individual that attracts and develops new commercial loan business, typically through the retail branch channel (or in some cases through telesales or other alternative sales channels). Commercial lending credit analysts should be considered to be individuals who are typically responsible for analyzing various information submitted by potential borrowers (or existing borrowers) to assess their credit-worthiness and assist in making a decision on the loan (approve or deny). In many cases, loan officers and credit analysts may process work related to a variety of loan types (e.g., the same employees work on commercial loans in addition to mortgages, consumer loans, etc.). Do not include application processors, underwriters or loan closing employees in this calculation.
KPI Formula :
Total Number of Commercial Loan Officers / Total Number of Commercial Credit Analysts