Category: Banking KPIs

As banks continue to navigate through uncertainty, more regulatory scrutiny, competition from fintech and other new entrants, and changing customer expectations, performance-based metrics have become an increasingly important part of a bank executive’s arsenal. You may be asking yourself how to measure bank performance and you can start by measuring Key Performance Indicators (KPIs), which is the foundation of successful benchmarking practices. What are Key Performance Indicators for Banks?  The pressure for banks to perform comes from many places: customers, shareholders, regulators, and employees. Thankfully, there are a wide variety…

Fintechs moving into traditional banking territory, increased scrutiny from regulators, and new customer dynamics are changing the retail banking business model. Banks are having to spend more to keep up—but a low-interest rate environment makes staying profitable more difficult. To compete, you’ll need to refine your retail banking strategy, reduce costs, and be smarter about allocating your resources. To accomplish these tasks, you’ll need the aid of retail banking Key Performance Indicators or KPIs. What is a Retail Banking KPI? Retail Banking Key Performance Indicators (KPIs) are metrics you can…

To combat continuing low-interest rates and competition from fintechs, commercial and consumer lenders need to become as lean and mean as possible, all while keeping a close eye on macroeconomic factors that can negatively impact loan portfolios. By establishing key performance indicators (KPIs), and tracking these key performance indicators for loans over time, you can improve your operational efficiency, boost productivity, and close more commercial and consumer loans while reducing costs. What are Key Performance Indicators for Loans? Key performance indicators for loans can be defined as various loan-related metrics…

Banks use net interest margin—the yield between the interest they pay to depositors and the amount of interest they receive from commercial and consumer loans—as one indicator of profitability and growth. And while interest rates are largely out of banks’ control since they are tied to the federal funds rate, lenders can improve lending efficiency to positively impact net interest margins. What are Performance Metrics for Commercial and Consumer Lending?    For consumer loans such as mortgages and automobiles, lenders evaluate the personal financial health of the borrower(s) when deciding…

Mortgage loan officers are the face of your lending organization and how they interact with potential borrowers plays a big role in mortgage loan profitability. Mortgage loan officer performance metrics allow you to uncover the inefficiencies that are holding them back from originating more loans and keeping borrowers happy. What are Performance Metrics for Mortgages Loan Officers? Mortgage loan officers, sometimes called mortgage loan originators, need to be adept at selling mortgages to creditworthy borrowers and following through on the loan until closing. They play an integral part in moving…