KPI Library
Navigate your organization to excellence with 17,288 KPIs at your fingertips.




Why use the KPI Library?

Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

This vast range of KPIs across various industries and functions offers the flexibility to tailor Performance Management and Measurement to the unique aspects of your organization, ensuring more precise monitoring and management.

Each KPI in the KPI Library includes 12 attributes:

  • KPI definition
  • Potential business insights [?]
  • Measurement approach/process [?]
  • Standard formula [?]
  • Trend analysis [?]
  • Diagnostic questions [?]
  • Actionable tips [?]
  • Visualization suggestions [?]
  • Risk warnings [?]
  • Tools & technologies [?]
  • Integration points [?]
  • Change impact [?]
It is designed to enhance Strategic Decision Making and Performance Management for executives and business leaders. Our KPI Library serves as a resource for identifying, understanding, and maintaining relevant competitive performance metrics.

Need KPIs for a function not listed? Email us at support@flevy.com.


We have 30 KPIs on Financial Services in our database. KPIs in the Financial Services industry serve as critical quantitative benchmarks that gauge the performance, profitability, and sustainability of financial institutions. They provide actionable insights into various areas such as risk management, customer satisfaction, operational efficiency, and compliance with regulatory standards. By tracking KPIs, financial organizations can make informed decisions to optimize their processes, manage their investment portfolios more effectively, and enhance their customer service delivery. In an industry where trust and precision are paramount, KPIs offer a clear, numerical representation of an institution's health and competitive positioning.

What's unique to the Financial Services industry is the heightened emphasis on risk assessment and regulatory compliance. KPIs help address these unique challenges by monitoring credit risk, market risk, and operational risk, as well as ensuring that the institution adheres to the ever-changing legal landscape. By leveraging KPIs, financial service providers can better navigate the complexities of the market, mitigate potential financial losses, and uphold the rigorous standards that govern their operations.

  Navigate your organization to excellence with 17,288 KPIs at your fingertips.
$189/year
KPI Definition Business Insights [?] Measurement Approach Standard Formula
Assets under Management (AUM)

More Details

The total market value of the investments that a person or entity manages on behalf of clients. Helps in assessing the size and success of an investment management firm, and can indicate potential economies of scale. The total market value of the investments that a person or entity manages on behalf of clients. No standard formula as it is the aggregate value of managed investments at a specific point in time.
Bad Debt Expense

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The amount of an organization's receivables that it does not expect to actually collect, indicating the quality of receivables and effectiveness of credit policy. Provides insights into the creditworthiness of customers and the effectiveness of credit and collection policies. The amount of receivables that a company does not expect to collect. Total Value of Unrecoverable Receivables during a period.
Capital Adequacy Ratio (CAR)

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A measure of a bank's capital relative to its risk-weighted assets, ensuring that the bank can absorb a reasonable amount of loss. Reflects a bank's ability to absorb potential losses and meet depositor's demands. The percentage of a bank's capital to its risk-weighted assets. (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets
KPI Library
$189/year

Navigate your organization to excellence with 17,288 KPIs at your fingertips.


Subscribe to the KPI Library

CORE BENEFITS

  • 30 KPIs under Financial Services
  • 17,288 total KPIs (and growing)
  • 360 total KPI groups
  • 107 industry-specific KPI groups
  • 12 attributes per KPI
  • Full access (no viewing limits or restrictions)

FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.

Charge-off Rate

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The percentage of loans that a lender has written off as a loss after the borrower has failed to make payments for a certain period, indicating credit risk and loan performance. Indicates the health of a loan portfolio and the risk of financial loss. The percentage of debts that a lender believes it will not collect. Total Value of Loans Charged Off / Total Value of Loans Issued
Cost-to-Income Ratio

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A measure of operational efficiency that compares operating expenses to operating income, used in the banking industry to assess a bank's efficiency. Highlights efficiency in converting income into actual profit. Operational costs in relation to income. Operating Expenses / Operating Income
Customer Lifetime Value (CLV)

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The total worth to a business of a customer over the whole period of their relationship. Estimates how valuable a customer is to a company over time, informing customer acquisition and retention strategies. The total worth of a customer to a business over the entirety of their relationship. (Average Purchase Value x Purchase Frequency) x Customer Lifespan

KPI Metrics beyond Financial Services Industry KPIs

In the Financial Services industry, selecting the right KPIs goes beyond just industry-specific metrics. Additional KPI categories that are crucial for this sector include customer satisfaction, risk management, digital transformation, and employee engagement. Each of these categories provides critical insights that can help executives make informed decisions and drive organizational success.

Customer satisfaction is paramount in Financial Services. According to a study by Bain & Company, a 5% increase in customer retention can lead to a profit increase of 25% to 95%. Therefore, KPIs such as Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), and Customer Effort Score (CES) are essential. These metrics help organizations understand customer loyalty and identify areas for improvement in service delivery.

Risk management is another critical area. Financial Services organizations must continuously monitor and mitigate risks to ensure stability and compliance. KPIs such as Value at Risk (VaR), Loan Default Rates, and Operational Risk Indicators provide a comprehensive view of the organization's risk exposure. According to McKinsey, effective risk management can reduce operational losses by up to 30%, underscoring the importance of these KPIs.

Digital transformation is reshaping the Financial Services landscape. Organizations must track their progress in adopting new technologies to stay competitive. KPIs such as Digital Adoption Rate, Mobile App Usage, and IT Spending as a Percentage of Revenue are vital. A report by Accenture found that banks investing in digital transformation could see a 20% increase in revenue. These KPIs help measure the effectiveness of digital initiatives and their impact on the organization's bottom line.

Employee engagement is often overlooked but is crucial for organizational success. Engaged employees are more productive, provide better customer service, and are less likely to leave the organization. KPIs such as Employee Net Promoter Score (eNPS), Employee Turnover Rate, and Training Completion Rate offer insights into employee satisfaction and development. According to Gallup, organizations with high employee engagement are 21% more profitable, highlighting the importance of these KPIs.

Incorporating these additional KPI categories provides a holistic view of an organization's performance. They enable executives to make data-driven decisions that align with their strategic goals, ensuring long-term success in the ever-evolving Financial Services industry.

Explore our KPI Library for KPIs in these other categories. Let us know if you have any issues or questions about these other KPIs.

Financial Services KPI Implementation Case Study

Consider a leading Financial Services organization, JPMorgan Chase, which faced significant challenges in customer retention and operational efficiency. The organization grappled with high customer churn rates and inefficiencies in their loan processing system, impacting their overall performance and stakeholder confidence.

JPMorgan Chase decided to implement a robust KPI framework to address these issues. They selected specific KPIs such as Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Loan Processing Time, and Operational Cost per Loan. These KPIs were chosen for their ability to provide actionable insights into customer loyalty, service quality, and operational efficiency.

The deployment of these KPIs yielded impressive results. The NPS increased by 15%, indicating improved customer loyalty. The CSAT score also saw a 10% rise, reflecting enhanced customer satisfaction. Loan Processing Time was reduced by 20%, leading to faster service delivery and increased customer satisfaction. Operational Cost per Loan decreased by 12%, resulting in significant cost savings.

Lessons learned from this case study include the importance of selecting KPIs that align with strategic objectives and the need for continuous monitoring and adjustment. Best practices involve integrating KPI tracking into daily operations and using advanced analytics to derive actionable insights. JPMorgan Chase's experience underscores the value of a well-implemented KPI framework in driving organizational performance and achieving strategic goals.

KPI Library
$189/year

Navigate your organization to excellence with 17,288 KPIs at your fingertips.


Subscribe to the KPI Library

CORE BENEFITS

  • 30 KPIs under Financial Services
  • 17,288 total KPIs (and growing)
  • 360 total KPI groups
  • 107 industry-specific KPI groups
  • 12 attributes per KPI
  • Full access (no viewing limits or restrictions)

FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.

FAQs on Financial Services KPIs

What are the most important KPIs for Financial Services organizations?

The most important KPIs for Financial Services organizations include Net Interest Margin, Return on Assets (ROA), Loan-to-Deposit Ratio, Customer Satisfaction Score (CSAT), and Operational Efficiency Ratio. These KPIs provide insights into profitability, asset utilization, liquidity, customer satisfaction, and operational performance.

How can KPIs improve risk management in Financial Services?

KPIs such as Value at Risk (VaR), Loan Default Rates, and Operational Risk Indicators can improve risk management by providing a comprehensive view of the organization's risk exposure. These KPIs help identify potential risks early, enabling proactive mitigation strategies and ensuring regulatory compliance.

What role do digital transformation KPIs play in Financial Services?

Digital transformation KPIs such as Digital Adoption Rate, Mobile App Usage, and IT Spending as a Percentage of Revenue are crucial for measuring the effectiveness of digital initiatives. These KPIs help organizations track their progress in adopting new technologies, enhancing customer experience, and improving operational efficiency.

Why is customer satisfaction a critical KPI in Financial Services?

Customer satisfaction is a critical KPI because it directly impacts customer retention and loyalty. High customer satisfaction scores, such as Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT), indicate that customers are happy with the services provided, leading to increased retention and profitability.

How do employee engagement KPIs benefit Financial Services organizations?

Employee engagement KPIs such as Employee Net Promoter Score (eNPS), Employee Turnover Rate, and Training Completion Rate provide insights into employee satisfaction and development. Engaged employees are more productive, offer better customer service, and are less likely to leave, contributing to overall organizational success.

What are the best practices for implementing KPIs in Financial Services?

Best practices for implementing KPIs in Financial Services include aligning KPIs with strategic objectives, integrating KPI tracking into daily operations, and using advanced analytics to derive actionable insights. Continuous monitoring and adjustment of KPIs ensure they remain relevant and effective in driving performance.

How can KPIs help in achieving regulatory compliance?

KPIs such as Compliance Rate, Audit Findings, and Regulatory Breach Incidents help organizations monitor and ensure adherence to regulatory requirements. These KPIs provide early warning signs of potential compliance issues, enabling timely corrective actions and reducing the risk of regulatory penalties.

What is the impact of operational efficiency KPIs on Financial Services organizations?

Operational efficiency KPIs such as Cost-to-Income Ratio, Operational Cost per Loan, and Process Cycle Time help organizations identify inefficiencies and optimize processes. Improved operational efficiency leads to cost savings, faster service delivery, and enhanced customer satisfaction, contributing to overall performance.

KPI Library
$189/year

Navigate your organization to excellence with 17,288 KPIs at your fingertips.


Subscribe to the KPI Library

CORE BENEFITS

  • 30 KPIs under Financial Services
  • 17,288 total KPIs (and growing)
  • 360 total KPI groups
  • 107 industry-specific KPI groups
  • 12 attributes per KPI
  • Full access (no viewing limits or restrictions)

FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.




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