Banking Balanced Scorecard Metrics Pack
The “Credit Risk” scorecard helps to measure credit related risks. For more information about credit risk and credit risk management check credit metrics web-site.
“Retail Banking” scorecard helps to measure performance of a bank-2-customer relationship, giving CEO a performance control tool for managing bank’s branches.
The “Mortgage” scorecard helps to estimate mortgage-related risks and measure the performance of mortgage-related investments.
The pack includes 5 Banking metrics:
- Credit Risk. To successfully manage a credit risk portfolio it is crucial to analyze the dynamics of credit risk. The main objectives in Credit Risk modeling include: measuring credit risk in terms of default probabilities rather than ordinal rankings; providing the most accurate forward-looking, causal model; and providing frequent updates and early warning of changes in credit quality.
- Retail Banking. Expanding retail banking operations requires increasing organization wallet share, improving customer satisfaction and loyalty, and serving mass market customers more cost-effectively. To succeed, the financial institution needs to develop an efficient strategy based on a number of key performance indicators.
- Mortgage. Using modern tools to manage credit risk should help servicers reach profitability goals. Knowing when to apply the new tools in the credit cycle is crucial for success. An efficient credit risk measurement program provides for better customer service, lower processing costs and reduced credit losses.
- Credit Card Processing. Presently, there are two principal aspects of secure credit card processing: Address Verification Service (AVS) and Card Verification Value (CVV). Address verification service ensures that the address provided by a customer matches the address associated with a credit card account. Card verification value is a three to four digit number found on the back of American Express, MasterCard and Visa cards. If the address or the CVV number is entered wrong, the transaction may be declined.
- Investment Banking. Indicators can play a vital role in an Investment Banking firm to ensure that the balanced growth is obtained throughout. It is necessary to do this, as the economic conditions and stock exchange of a country in which the concerned organization operates has a considerable impact on the performance of such groups. Sudden ups and downs may leave less space and time to track, ‘what went wrong’. To tackle the situation adequately, a BSC with relevant KPIs ‘fit the bill’.
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