While the Financial Services industry has been in the news a lot lately, the metrics such customers use for managing performance are rarely mentioned. Here’s a look at this industry’s unique metrics.
While the Financial Services industry has been in the news a lot lately, the metrics such customers use for managing performance – the metrics you should use to quantify your solution’s value – are rarely mentioned. Here’s a look at this industry’s unique metrics.
We’ve developed this short format overview for exactly that purpose. In addition, use Analyst Reports. These reports used to benchmark companies are an ideal resource for identifying industry and customer-specific metrics.
Operating Revenue Growth
(Net Interest Income
+ Fee Income)
Measured as year-over-year growth, use this metric when your solution impacts fee income drivers such as product mix, cross-selling, product bundling, customer retention and loyalty programs, and reducing time for entering new markets.
Net Income Earnings Per Share (EPS) Growth
Measures year-over-year profitability. Areas of opportunity include impacting cost savings, operational improvements and improved acquisition integration.
÷ Operating Revenue)
Primarily used in retail banking, potential points of alignment include increasing branch productivity, shifting call centers to sales and enabling customer/employee self-service.
Evaluating year-over-year and quarterly growth compared with your customer’s peer group is one way to identify new opportunities.
Year-over-year and quarterly measurements of total deposits.
A ratio computed by current year provision plus the average loan balance.
The ratio of customers using more than one product or service (e.g., checking accounts, credit cards, home loans, etc.) To the total number of customers.
Return On Equity
(Net Income +
A high-level profitability ratio used for benchmarking financial services companies. sed for benchmarking financial services companies.
(Claims And Expenses As A Percentage Of Premiums)
A general gauge used by insurance companies that encompasses sales, claims and expenses in one calculation.
Churn, or turnover, is calculated by dividing the number of customers who cancel service during a period of time by the total number of customers at the beginning of that period.