Consumer Loans Serviced per Consumer Loan Servicing Employee

Consumer Loans Serviced per Consumer Loan Servicing Employee

KPI Details

Consumer Loans Serviced per Consumer Loan Servicing Employee measures the total number of consumer loans in the banks servicing portfolio in relation to the number of consumer loan servicing employees working for the bank at the same period of time. Understanding consumer loan servicing production is an important part of understanding overall consumer loan program performance. This metric is also a clear indicator of capacity issues and overstaffing for several departments within the retail bank. High values for this metric are preferred, as low values can be indicative of overly complex loan servicing processes, high amounts of rework due to errors or multiple touch points (typically originating from incorrectly filled applications, or applications that contain missing documentation), inconsistent use of process documentation, sub-par consumer loan servicing employee performance, a lack of standard training, or a low demand for consumer loans.

KPI Definition

The total number of consumer loans in the bank's servicing portfolio divided by the number of consumer loan servicing employees working for the bank at the same point in time.

KPI Best Practices

• Create a policy for tracking customer contacts and keep records of their information and interactions
• Prioritize loans based on outstanding amount, likelihood of delinquency, days past due, etc.
• Organize a dedicated group of customerfacing associates so that other employees can focus on higher priority tasks

KPI Calculation Instructions Consumer Loans Serviced per Consumer Loan Servicing Employee?

Two numbers are used to calculate this KPI: (1) the total number of consumer loans in the bank’s servicing portfolio, and (2) the number of consumer loan servicing employees working for the bank at the same point in time. Include all outstanding consumer loans (performing and non-performing) in the bank’s portfolio within the numerator. Include staff working within the call center, collateral management, loss mitigation, collections/defaults and payment processing/modification functions in the denominator. Consumer loans typically include auto loans, personal loans and student loans. Do not include mortgage loans in this calculation.

KPI Formula :

Total Number of Consumer Loans / Number of Consumer Loan Servicing Employees