KPI for Measuring of % of Bank Branches Located in Low to Moderate Income Neighborhoods posted in category Banking

WinningKPI - Banking - KPI for Measuring of % of Bank Branches Located in Low to Moderate Income Neighborhoods posted in category Banking

This indicator is for measuring the bank branches located in low to moderate income neighborhoods, as a % of the total bank branches. This is calculated by dividing the total number of branches located in low to moderate income neighbourhoods by the total number of branches.
This KPI is used to understand the exterior factors that affect the bank’s performance.
For instance, one branch may have a lower net profit margin due to its position in a low income neighborhood. The Average Sum deposited in New Deposit Accounts KPI may also be lower in this bank compared to other banks situated in high income neighborhoods.
This KPI can be joined with a wide range of Banking KPIs for in depth analysis and strategic action.

Formula:
Total number of branches located in low to moderate income neighbourhoods/ Total number of branches x 100

KPI Units: %

KPI Time Frame: update annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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Example:
If a bank wants to measure the % of branches located in low to moderate income neighborhoods, based on the figures below, the formula is as following:

Total number of branches: 40

Total number of branches located in low to moderate income neighbourhoods: 25

25/40 x 100 = 62.5 %

The result shows that 62.5 % of the total number of branches is located in low to moderate neighbourhoods.

This figure could be used when assessing the financial stability/profits of different branches, target markets etc.
Oana Boteanu | + | September 13, 2012 at 10:05 am

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