Category: Banking

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…

Key risk indicators for information technology can be utilized for a wide variety of industries, but for this post we will be focusing on KRIs for IT departments within the banking industry. Banks today are heavily integrated with technology to connect with their customers and because of this, privacy breaches are a very real risk. For financial services organizations, a technology failure due to a cybersecurity breach or a service outage can have a devastating impact on the business and its customers. A failure can cause reputational damage, legal liability,…

Operational risk is defined as the risk bank’s face of monetary losses resulting from failures within their own processes, people and systems. Unlike external risk due to events such as market volatility, geopolitical risk, or systemic risk, operational risk is internal—meaning that banks have quite a bit of control over these risks. An operational risk dashboard for banks measures these internal risks and give banks the data they need to create measurable objectives to minimize those risks. Why is Operational Risk so Challenging for Banks?    Operational risk is complex…