Category: benchmarking analysis

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…

The cost of healthcare continues to outpace inflation. The Centers for Medicare & Medicaid Services (CMS) predicts that U.S. healthcare spending will reach nearly $6 trillion by 2027, accounting for 19.4% of GDP. All stakeholders in the healthcare ecosystem—including health insurance companies--are facing increased pressure to reduce health care costs. Benchmarking is one tool that health insurance companies can use to measure their operational efficiency and identify areas to lower costs. What is Health Insurance Benchmarking? The health insurance industry is highly regulated. For example, the Affordable Care Act (ACA)…

Every industry relies on technology. But when the technology doesn’t cooperate—either due to hardware or software failure, human error, or nefarious acts by hackers and criminals—businesses face a variety of risks such as lawsuits, compliance fines, and lost sales. The price of technology failure is high: 86% of businesses say that the cost for one hour of downtime is $300,000 or higher. One in three businesses report that the cost of a single hour of downtime can reach $1 million to $5 million. How Benchmarking and Key Risk Indicators Help…

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…

Even as customers flock to online and mobile banking channels, brick-and-mortar retail bank branches continue to play an essential role in serving customers. Branches are still a leading sales channel for bank products and services, and most customers still value face-to-face transactions at their local retail branch—even if they don’t visit it very often. But branches are also one of a retail bank’s biggest operational expenses. A commonly cited statistic is that the same transaction done in a branch costs about $10 compared to about 25 cents in the digital…