Consumer Loans Closed per Consumer Lending Employee

Consumer Loans Closed per Consumer Lending Employee

KPI Details

Consumer Loans Closed per Consumer Lending Employee measures the total number of consumer loans closed in relation to the number of consumer lending employees working for the bank during the same period of time. This metric is an important indicator of consumer loan production and assists in understanding staffing and the available capacity of consumer lending employees. A relatively low value for this metric is typically related to a few common factors, including rework in the consumer loan process (typically caused by incomplete applications or internal application errors requiring follow up), low-value or redundant process steps, inconsistent training and performance of consumer lending employees, a lack of standard job aids or templates to expedite processing, or poor baseline qualifications for consumer lending employees.

KPI Definition

The total number of consumer loans closed over a certain period of time divided by the number of consumer lending employees working for the bank. Consumer lending employees include consumer loan officers, loan processors, underwriters and closers. Loan servicing employees are not included.

KPI Best Practices

• Verify that loan applications are filled out completely and accurately before passing through to closers
• Encourage potential borrowers to use call centers and online channels to apply for loans
• Document errors or issues encountered by processors to identify root causes and develop standard solutions

KPI Calculation Instructions Consumer Loans Closed per Consumer Lending Employee?

Two numbers are used to calculate this KPI: (1) the total number of consumer loans closed over a certain period of time, and (2) the number of consumer lending employees working for the bank. Closed consumer loans are considered to be loans that not only have been agreed upon by lender and borrower, but have also had associated paperwork finalized and signed (i.e. at this point in time, the borrower becomes fully responsible for repaying the lender). Closed loans do not include all loans that have been funded, as some loans that are funded by lender may not yet be closed (i.e. different fund and close dates). Consumer lending employees include consumer loan officers, loan processors, underwriters and closers. Do not include loan servicing employees/administrators in the denominator.

KPI Formula :

Total Number of Consumer Loans Closed / Number of Consumer Lending Employees