KPI Benchmarks : Lockbox Item Processing Hold Over Rate
- Benchmark Range
- Benchmark Average 11.3%
- Benchmark Sample Size (n) 24
* Is High or Low Best: Lower is Better
KPI Details : Lockbox Item Processing Hold Over Rate
Lockbox Item Processing Hold Over Rate measures the number of payments not processed on the same day they were received in relation to the total number of payments received over the same period of time. A relatively high value for this metric is typically related to a few common factors, including highly manual (i.e., error and rework prone) lockbox processes and procedures (e.g., manual documentation scanning and data entry, etc.), general inefficiencies within lockbox processes (e.g., untimely documentation scanning, inefficient backup processes concerning lockbox data, sub-par lockbox activity supervision, poor customer communications concerning which lockbox would be more efficient for the customer, etc.), and sub-par lockbox employee training and performance. Each of these factors can increase customer frustration and attrition rates.
KPI Best Practices : Lockbox Item Processing Hold Over Rate
- Document payments that are not processed on same day to identify root causes
- Set targets for payment processing times and monitor trends over time
- Implement straight-through processing to minimize manual intervention
KPI Calculation Instructions Lockbox Item Processing Hold Over Rate?
Two numbers are used to calculate this KPI: (1) the number of payments not processed on the same day they were received, and (2) the total number of payments received over the same period of time. Include all types of payments received (e.g., checks, remittance documents, etc.) in all lockbox accounts managed. Lockbox accounts should be considered to be accounts serviced by the bank that allows companies to use a special post office box to collect customer payments.
KPI Formula :
(Number of Payments Not Processed on the Same Day They Were Received / Total Number of Payments Received) * 100