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Let’s start with a small introduction to what Key performance Indicators (KPIs) mean to the world of banks. It is well known that the banking industry has been victim of the 2008 financial crisis. For this reason and not only, measuring and forecasting performance has become a priority for bank executives. KPIs assist in measuring current performance and also planning/preparing for future performance. This is why here at winninkpi.com we put great emphasis on how you can use our KPIs for decision making, strategic planning and making changes. If something is not working well, you need an efficient measurement in place to be able to identify it, quantify it and amend it; after that it’s best to measure it again and see if improvement has taken place.
Although banks already have sophisticated financial measurement systems in place, which provide great reports on financial performance, KPIs are still a very valuable tool. Managers use these KPIs for insight into financial performance and learn from it how to keep performance at its highest standards. Let’s look at a few measurement areas for which KPIs are valuable:
Customer Accounts
Mortgages and Loans
Delinquencies
Customer Service
Financial Performance (profits, losses, balance, etc.)
Risk Competence
Here at winningkpi.com we have varied list of Banking KPIs, covering the areas above. The main sections of our KPIs measure the topics below. I added under each topic some KPI examples; check out the website for more.
Customer Service
Loans
Financial Performance (Profit, Risk)
Branch Performance (Allocation, Financial Performance)
Mortgages:
Delinquencies:
Under each KPI there is one or more comments with further explanations about it. If you don’t find what you are looking for, POST IT! You will get support from our team of professionals, or from fellow business users.
To make the most of out our Banking KPIs, check out the best practice tips below. They will help you take 100% benefit from the KPIs here at winningkpi.com.
Personalize them!
Ensure they measure what you need measured. Check out our KPIs, take the examples and apply them to your needs. If you’re not sure what you want measured, that’s fine. All you need to do is browse through our KPIs, take a note of what you would like to measure, and then apply it to your business needs. Post a request for specific KPIs or a comment under an existing KPI and we’will help you.
Make them strategic!
KPIs, as their name reflects, are tools to measure performance. In simple words, performance measures how well the company is working towards meeting strategic goals. Therefore, it is very important that the KPIs are aligned with the overarching strategy. If you new strategy is to minimize Subprime Mortgages, you will get value from creating a list of KPIs to measure how well mortgages are managed in the bank. This could reveal areas of improvement, important information for decision making etc.
Make them measurable!
Just like objectives, KPIs need to the SMART (Specific, Measurable, Achievable, Realistic and Time Scaled).
Create a model of what you want to achieve and then use KPIs to measure the performance in different areas that work towards that achievement.
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Manage your KPIs with BSC Designer software