Banking Metrics

Banking Metrics
Metrics Catalog
Representative Examples
Operations
Metrics
This Catalog Describes The Labs Benchmarking

Approach and Over 350 Comparative Metrics for Banking
A. The Labs Approach to Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Describes The Labs library of benchmarking metrics and outlines our typical
benchmarking approach
B. Firm-wide Benchmarking Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Reviews The Labs most popular comparative metrics for analyzing overall organization size,
structure and operating effectiveness. These metrics are useful for identifying relevant peers.
C. Banking Functional and Business Process Metrics . . . . . . . . . . . . . . . . . . . . 15

Defines comparative metrics used by The Lab to analyze the procedures and operating
effectiveness of functional departments and processes within banking business
A. Retail Banking/Branches
B. Cash Management
C. Commercial Banking
D. Consumer Lending
E. Merchant Services
F. Mortgage Lending
G. Wealth Management
H. Back Office
I. Collections
J. Deposit Operations
K. Item Processing
L. Loan Operations
M. Wealth Management Support
N. Support Groups
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Lab Consulting Partnership, Inc. All Rights Reserved
Section
The Labs Approach to Benchmarking
Describes The Labs library of benchmarking metrics and outlines our typical
benchmarking approach
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October 2011
About this Benchmarking Metrics Catalog...

The Lab has been conducting benchmarking analysis since our founding in 1993. Our metrics catalogs
comprise a standardized repository of the most operationally relevant performance measures for a wide
range of organizations and industries.
This Banking Metrics Catalog is drawn from the Financial Services section of our Industry-based catalogs.
Organization-based catalogs
Industry-based catalogs
Support Group
General Line
Services
Supply Chain
Finance
Field Sales &

Support
Financial Services
Pharmaceuticals
Human Resources
Marketing
Information Technology
Corporate
Services
Customer Service
Contact Centers
New Product
Development
Compliance/
Audit
Supply Chain
Operations
Legal
Order
Management
Internal
Improvement
Teams
Insurance
Chemicals
Banking
Food Production/
Processing
Broker/Dealer
Investment
Management
Media Services
Industrial Products/
Appliances
Information
Services
Technology
Health Plans
Procurement
Telecommunications
Materials
Management
Utilities
Production
Distribution
Paper/
Packaging
Print and Mail

Consumer Packaged
Goods
Retail and
Distribution
Oil and Gas
Metrics included in the catalog have been selected and grouped on the basis of practicality. Over the years,
these measures have proven to be the most feasible to collect externally and the easiest to administer for
internal operations management.
The Lab reuses these standard metrics on each of our consulting engagements. This approach enables
The Lab to refresh the data comparisons on a continual basis and avoid redefining costly, one-off
comparisons. Similarly, our clients find it helpful to standardize their own internal performance measures and
align these with The Labs metrics to enable cost-efficient external comparisons.
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Helpful Tips for Performance Measurement

The Labs Approach to Metrics Selection
Avoid enterprise comparisonsThe Lab focuses on specific nuts and bolts level, quantified
comparisons of well-documented operating tasks, routines and ratios. We avoid wholesale
comparisons of companies or business lines. Such efforts can rapidly evolve into broad, subjective
discussions of qualitative, overarching business philosophies and strategies.
Focus primarily on operational [not cost] comparisonsThe Lab limits cost benchmarks to 20%
or less of the total metrics used in any comparative analysis. Both internal and external cost data
frequently include allocations and chargebacks that cannot be unbundled for normalized comparison
within a reasonable time frame.
Target work activities and common routines for comparisonBusiness processes and
organization structure vary significantly both across and within comparable peer companies.
However, the tasks and sub-routines that comprise these processes and organizations are
remarkably similar. The Lab targets these common elements for comparison.
Keep metrics to a manageable quantityMost external peers considering participation in a
benchmarking effort will tolerate only a small number of readily available metrics, typically less than
twenty. Prioritize metrics into several groups to ensure that a small number of essential metrics are
gathered first during each interview. A longer list of extra credit questions can be posed to peers
willing to spend additional time on the interview. Similarly, internal operating measures for day to day
use should be restricted to a concise number for each arearoughly 610 essential metrics.
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October 2011
The Labs Typical Benchmarking Project: Four Phases

Phase I: Jointly Develop the Proposal
Introduce The Lab, our benchmarking capabilities and our experience
Understand the clients objectives for the benchmarking initiative
Jointly develop a proposal that meets the clients needs [scope, budget, time frame, internal/
external participation]
Phase II: Develop the Shell Document

The Lab meets with client representatives to define and prioritize key elements of the project that
meet the scope defined by the proposal. A shell document is created prior to the start of field
research. The shell defines all aspects of the final report except the data comparisons.
Metrics definitions and priorities
Peer group definitions
Comparable companies/prospective participants
Phase III: Conduct Field Research/Provide Updates

The Lab solicits participants and conducts field interviews with peer companies
As data is collected, clients receive updates and preliminary findings throughout the initiative
Additional refinement of metric definitions and priorities is conducted as required
Develop a running list of clarification and validation questions for final, follow-up peer interviews
Phase IV: Validate and Finalize

Consolidate, streamline and prioritize all clarification and validation questions
Conduct brief follow-up interviews with peer company participants
Compile final documents for both client sponsor and peer company participants
[abridged versions]
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October 2011
Section
Reviews The Labs most popular comparative metrics for analyzing overall
organization size, structure and operating effectiveness. These metrics are
useful for identifying relevant peers.
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Firm-wide Metrics
1. Total Revenue
Total enterprise-wide revenue year-end as reported on
an earnings statement.
2. Total Assets
Total firm-wide assets as recorded in annual reports.
3. Total Operating Expense
Total firm-wide operating expense as recorded in
annual reports.
4. Total Employee Head Count

Total number of firm-wide employees.
5. Total Revenue per Employee
Total firm-wide revenue divided by total number
of employees.
6. Total Operating Expense per Employee

Total firm-wide operating expense divided by total
number of employees.
7. Return on Assets
Net income plus interest expense divided by total assets
[in percentage points].
8. Return on Equity
Return on average shareholders equity [in percentage
points].
9. Total Operating Expense

Total operating expense for Banking year-end.
a. Total firm-wide operating expense
b. Total Banking expense
10. Total Employee Head Count

Total number of employees at year-end.
a. Total FTEs firm-wide
b. Total Banking FTEs firm-wide
11. New Hires

Indicate number or new Banking hires in previous
12-month period.
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Firm-wide Metrics
12. Business Segments
Indicates the total number of firm-wide business
17. Functions within the Banking Function

[responsibilities of each function]
Yes/no metric indicating functional areas with the
13. Lines of Business

Y es/No metric indicating major lines of business.
segments.
a. Investments [e.g., investment management]

b. Broker/Dealer [e.g., securities broker or trader,
investment bank]
c. Commercial Bank [e.g., savings account, loans]
d. Insurance [e.g., institutional insurance, individual
insurance]
14. Largest Revenue Source

Indicate business line that yields the largest amount of
company revenue.
a. Investments [e.g., investment management]
b. Broker/Dealer [e.g., securities broker or trader,
investment bank]
c. Commercial Bank [e.g., savings account, loans]
d. Insurance [e.g., institutional insurance, individual
insurance]
15. Banking Organization

Indicates whether the Banking function is centralized or
decentralized along various lines.
a. Centralized at corporate [single Banking group within
a central, corporate Banking department]
b. Located within business groups [separate Banking
departments/functions oversee and are responsible
for the Banking function within each business group,
i.e., not corporate Banking]
c. Centralized at a shared service center [a noncorporate shared service center comprised of several
support functions that oversee the Banking function
for all business groups
d. Mixed Banking function [Banking functional
responsibilities and activities are distributed between a
single corporate Banking department and business
16. Geographic Locations

Indicates the number of geographic locations or regional
offices nationwide within the organization.
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Banking units at peer companies.
a
. Branches
b. Consumer
c. Small Business
d. Wealth Mgmt./Private Client Management
e. Investment
f. Brokerage
g. Mortgage
h. Insurance
i. Leasing
j. Trust Services
k. Real Estate
l. Credit Operations

m. Loan Operations
n. Internet/Online Services
o. Customer Contact Center[s]
p. Deposit Processing
q. ATM Operations
r. Exception Processing

s. Account Servicing
t. Item Processing
18. Product or Service Location

Indicates primary location of the following services and
Banking units at peer companies [C = Headquarters, R =
Remote Location, M = Split between Headquarters and
remote location].
a. Branches
b. Consumer
c. Small Business
d. Wealth Mgmt./Private Client Management
e. Investment
f. Brokerage
g. Mortgage
h. Insurance
i. Leasing
j. Trust Services
k. Real Estate
l. Credit Operations
m. Loan Operations
n. Internet/Online Services
o. Customer Contact Center[s]
p. Deposit Processing
q. ATM Operations
r. Exception Processing
s. Account Servicing
t. Item Processing
Firm-wide Metrics
19. Management Levels in Banking Function
Indicates the number of management levels in the
Banking organization [from Vice President to Supervisor].
a. Corporate/executive officer level
b. Line/staff level
20. Direct Reports

Indicates the average number of direct reports
per manager.
21. Outsourcing of Banking Functions

Indicates which, if any, of the functions in the company
Banking organization are outsourced.
a. Credit Operations
b. Loan Operations
c. Internet/Online Services
d. Customer Contact Center[s]
e. Deposit Processing
f. ATM Operations
g. Exception Processing
h. Account Servicing
i. Item Processing
22. Recent Relocation Initiatives

Y es/no metric indicating whether any groups or activities
within the Finance organization have recently relocated
or are currently under consideration for relocation.
23. Site Selection

Indicates the relocation site was selected.
B = Pre-existing business facility
C = Cheap acquisition of new facility
P = Proximity to customers
L = Access to talented labor
O = Other [please specify]
24. Relocation Candidates

Indicates activity types that have been relocated or are
currently under consideration for relocation.
G = Entire group
A = Bulk of activities
B = Back Office [e.g., accounts payable]
P = Processing [e.g., transaction clearing]
C = Call Center
O = Other [please specify]
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Section
Banking Functional and Business Process Metrics

Defines comparative metrics used by The Lab to analyze the procedures
and operating effectiveness of functional departments in Banking
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Retail Banking Branches

Retail Banking Characteristics
1. Retail Customers

Number of retail customers per each of the following

a. Employee
b. Customer service representative
c. Retail banking branch
2. Retail Banking Expense

Total non-interest expense per each of the following

a. Branch
b. Employee
c. Retail customer
Teller
11. Number of Teller Transactions per
Teller FTE
Indicates the number of teller transactions completed
divided by the number of teller full time employees.
12. Customer Exit Sampling

Outside firm provides a monthly indicator.
13. Number of Customers Waiting in Line
Branch manager will determine the busy hour and
take a snapshot count of the number of customers
standing in line.
3. Revenue per Retail Customer

Gross revenue divided by number of retail customers.
4. Retail Banking Efficiency Ratio

Non-interest expense divided by gross revenue [in

percentage points].
14. Dollar Cost per Teller Transaction

Processed
Indicates the total employee expense of processing
teller transactions divided by the number of total teller
transactions .
5. Retail Banking Return on Assets

Net income divided by total assets [in percentage

points].
6. Banking Relationship Time Span

Percentage of retail customers remaining with the

bank for each time period
a. Less than 1 year
b. 1 to 4 years
c. 5 to 10 years
d. More than 10 years
Platform
7. N
umber of New Accounts Opened per
Platform FTE

Indicates the number of new accounts opened divided

by the number of platform full time employees.
8. Customer Exit Sampling

Outside firm provides a monthly indicator.
9. Number of Customers Waiting
Branch manager will determine the busy hour and take
a snapshot count of the number of customers waiting.
10. Dollar Cost per New Account Opened

Employees
15. Total Retail Banking Staff Breakdown
Total number of retail employees in each of the

following positions
a. Sales [licensed representatives]
b. Sales [new account/customer service
representatives, personal bankers]
c. Tellers
d. Marketing professionals
e. Managers/supervisors
f. Administrative/clerical support
g. Other
16. Branch Banking Staff Breakdown

Number of branch employees per bank in each of the

following positions
c. Tellers
g. Other [please specify]
new account openings divided by the number of total

new account openings.
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Employees [cont.]
17. Non-Branch Retail Banking Staff
Breakdown
Number of non-branch retail employees in each of

the following positions

c. Tellers
g. Other
18. Retail Banking Staff Turnover

Average annual turnover rate for each of the following

a. Officer/exempt
b. Non-exempt
c. Part-time, non-benefited tellers
d. Part-time, benefited tellers
e. Full-time, benefited tellers
19. Days to Fill Vacant Positions

Average number of days taken to fill vacant positions

a. Officer/exempt
b. Non-exempt
20. Variable Compensation Programs

Yes/no metric indicating whether the bank offers a

variable compensation program

a. Overall
b. Sales incentives
c. Performance bonuses
d. Commissions
21. Variable Compensation Participants

Yes/no metric indicating whether the bank offers

variable compensation to each type of employee
a. Tellers
b. Platform [unlicensed]
c. Licensed representatives
d. Operations officers
Deposit Accounts
22. Deposit Account Attrition Rate
Number of discontinued accounts divided by number

of new accounts [in percentage points]

a. Retail accounts [overall]
b. Retail transaction accounts
c. Retail savings accounts
d. Retail time deposit accounts
e. Small business accounts
f. Individual accounts
23. Retail Deposit Sources

Percentage of total retail deposits by source

a. Individual accounts
b. Small business accounts
c. Wholesale funding [brokered deposits]
24. Retail Deposit Accounts per Employee

Number of retail deposit accounts divided by number

of employees
a. Retail banking employees
b. Branch banking employees
25. Retail Deposit Account Balances per

Employee
Total retail deposit account balances divided by

number of employees
a. Retail banking employees
b. Branch banking employees
Fee Income
26. Retail Banking Fee Income
Annual fee income posted to the retail banking
function [including processing fees, maintenance fees,
and commissions].
27. Fee Income per Checking Account

Annual fee income divided by number of checking
accounts.
ATM/Debit Cards
28. Debit Card Usage Ratio
Number of debit cards in use divided by number of
personal checking accounts.
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29. Transactions per Debit Card
Number of debit card transactions per month divided
39. Cycle Time for New Account Process

Length of time [in days] required for the processing of
number of debit cards.
30. Transactions per ATM

Number of ATM transactions per month divided by
number of ATMs.
Online Services
31. Internet Banking Usage Ratio
Number of enrolled Internet banking users divided by
number of checking accounts.
32. Bill Pay Usage Ratio

Number of enrolled Internet bill pay users divided by
number of checking accounts.
Wire Transfers
33. Wire Room Productivity
Wire transfers per day divided by number of wire room
employees.
Account Opening
34. Number of Account Openings
Number of new account openings per year.
35. Information Verification
Method[s] by which all information for the new

account process is verified

a. Manual verification
b. Computer verification
c. Double data entry
d. Other [please specify]
36. Number of Database Entries

Number of times the same information must be
entered to establish a new account.
37. Automatic Updating of Other

Databases
Yes/no metric indicating whether the creation of new
accounts automatically updates all other databases.
38. Number of Forms

Number of distinct forms used during the new account
new accounts [from when the back office is notified

to when all information is entered into the account
information system].
40. Transaction Error Rate

Percentage of total transactions that have errors
sufficient to require rework.
41. Rework Performance

Person[s] who corrects mistakes made during the new

account process
a. New account employee
b. Account service employee
c. Other [please specify]
42. Feedback Solicited

Yes/no metric indicating whether any form of external

or internal feedback is solicited regarding the new

account process
a. External
b. Internal
43. Frequency of Feedback

Frequency of solicited feedback
a. Monthly
b. Annually
44. Insufficient Documentation

Percentage of new accounts opened per year with
insufficient documentation.
Branch Operations
45. Branch Manager/Supervisor Time
Allocation
Average percentage of time allocated to each activity

a. Internal management duties

b. Deposit account servicing
c. Teller transaction processing
d. Internal marketing/sales
e. Consumer loan sales/origination
f. Small business loan development/origination
g. Out-of-office calls, business development
h. Investment/insurance sales [with license]
i. Other [please specify]
process.
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Branch Operations [cont.]
43. New Account/Platform Employee
Time Allocation


44. Teller Time Allocation



45. New Accounts per Platform Employee

Number of new accounts opened per month divided
by number of platform employees.
46. Accounts Serviced per Platform

Employee
Number of deposit accounts serviced per month
divided by number of platform employees.
47. Teller Transactions per Teller

Number of teller transactions per month divided by
number of tellers.
48. Branch Cross-Sell Ratio

Average number of products sold to each customer

a. Actual
b. Target
49. Lockbox Items per Lockbox Employee

Lockbox items per month divided by number of
lockbox employees.
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50. Saturday Lobby Hours

Yes/no metric indicating whether the bank has

Saturday lobby hours at each type of branch location

a. Traditional branch locations
b. Supermarket/in-store branch locations
51. Sunday Lobby Hours

Yes/no metric indicating whether the bank has
Sunday lobby hours at each type of branch location
a. Traditional branch locations
b. Supermarket/in-store branch locations
Additional Services
52. Additional Service Offerings

Checklist indicating whether the bank offers each

service to retail customers [directly or indirectly through
a subsidiary or third party]
a. Investment planning/consultation
b. Asset allocation
c. Estate planning
d. Real estate and tax shelter investment planning
e. Income tax planning/preparation
f. Retirement planning
g. College education planning
h. Comprehensive financial planning
i. Mutual funds
j. Annuities
k. Insurance [accident/health]
l. Insurance [life]
m. Insurance [property and casualty]
n. Insurance [long-term care]
o. Insurance [credit]
p. Personal trust service
q. Discount brokerage service
r. Full-service brokerage
s. Investment record keeping and income collection
t. Sales of gold and silver [precious metals]
u. Letters of credit
v. Other [please specify]
Investment Management
53. Branch Investment Sales Staff

Indicates the type[s] of employees selling investment

products in branches
SR = Dedicated sales representatives only
LE = Licensed branch employees only
BO = Dedicated sales representatives and licensed
branch employees

54. Branches per Investment
Representative
Number of branches divided by number of investment

representatives
a. Dedicated sales representatives
b. Total licensed employees
55. Investment Revenue per Dedicated

Sales Rep
Total investment revenue per month divided by
number of dedicated sales representatives.
56. Investment Revenue per License

number of licenses.
57. Investment Revenue per Branch

number of branches.
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Cash Management
Product Development
1. Number of Assigned Products per FTE
Indicates the number of assigned products divided by
the number of product development full time employees.
2. Number of Products in Development

per FTE
Indicates the number of products in development
divided by the number of product development full time
employees.
3. New Product Rollout Inquiry Rate

Indicates the percentage of calls that are received per
new product rollout.
4. Product Development Completion Rate

Indicates the average number of days required for a
product to be developed.
5. Dollar Cost per Product Developed

Indicates the total employee expense of products
developed divided by the number of total products
developed.
Sales
Data Transmission
10. Number of Data Transmission Clients
per FTE
Indicates the number of data transmission clients
divided by the number of data transmission full time
employees.
11. Number of Implementation Clients

per FTE
Indicates the number of implementation clients
divided by the number of data transmission full time
employees.
12. Client Verification Contact Rate

Indicates the percentage of clients contacted within
3 days verifying a new set-up.
13. Testing Turnaround Completion Rate

Indicates the percentage of data transmissions
meeting the quoted time for testing turnaround.
14. Dollar Cost per Data Transmission

data transmissions divided by the number of total data
6. Number of Opportunities in the Pipeline

per FTE
Indicates the number of opportunities in the pipeline
divided by the number of sales full time employees.
7. Client Issue Contact Rate

Indicates the percentage of client issues that are
responded to within twenty-four hours.
8. Service Expectation Completion Rate

Indicates the percentage of sales closed within service
expectation.
9. Dollar Cost per Sales Opportunity

Indicates the total employee expense of each sales
opportunity in the pipeline divided by the number of total
sales opportunities in the pipeline.
transmissions.
Client Services
15. Number of Client Service Tickets
Handled Per FTE
Indicates the number of client service tickets
completed divided by the number of client service full
time employees.
16. Number of Web Express Calls Handled

per FTE
Indicates the number of web express calls completed
divided by the number of client service full time
employees.
17. First Call Resolution Rate

Indicates the percentage of calls that are resolved on
the first attempt.
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Cash Management
Client Services [cont.]
18. Average Speed of Answer Rate
Indicates the percentage of inbound calls that are
answered within thirty seconds.
19. Dollar Cost per Customer Call

customer calls divided by the number of total
customer calls.
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Commercial Banking
Credit Department
1. Number of Credit Write-ups per FTE
Indicates the number of credit write-ups completed
divided by the number of credit analyst full time
employees.
2. Credit Write-up Revision Rate

Indicates the percentage of credit write-ups which
require revision after leaving the credit department.
3. Credit Write-up Completion Rate

Indicates the percentage of credit write-ups completed
within ten days.
4. Dollar Cost per Credit Write-up

credit write-ups divided by the number of total credit
write-ups.
Commercial Lending
5. Dollar Value of Loans per FTE
Indicates the dollar value of commercial loans divided by
the number of commercial lender full time employees.
6. Commercial Loan Accounts per

Loan Officer
Number of commercial loan accounts divided by number
of loan officers.
7. Number of Sales Calls per FTE

Indicates the number of sales calls completed divided by
the number of commercial lender full time employees.
8. Commercial Loan Charge Off Rate

Indicates the percentage of loans charged off.
9. Commercial Loan Proposal Close Ratio
Indicates the percentage of loan proposals closed on.
10. Complete Commercial Loan Package
Submission Rate
Indicates the percentage of complete loan packages
submitted to the credit department.
12. Portfolio Delinquency Rate

Indicates the percentage of total portfolio delinquency
within a portfolio.
13. Referral Contact Rate

Indicates the percentage of referrals contacted within
twenty-four hours.
14 . Dollar Cost per Commercial Loan

Application
the total dollar value of commercial loans divided by
the total dollar value of commercial loans.
15. Commercial Loans Outstanding per

Loan Officer
Total value of commercial loans outstanding divided by
number of loan officers.
16. Commercial Loan Officers per

Credit Analyst
Number of commercial loan officers divided by number
of credit analysts.
17. Commercial Loans Outstanding per

Loan Support Employee
Number of commercial loans outstanding divided by
number of loan support employees.
18. Commercial Loans Closed per Loan

Support Employee
Number of commercial loans closed per month
divided by number of loan support employees.
19. Commercial Loans Serviced per Total

Loan Servicing Employee
Number of commercial loans serviced per month
divided by total number of servicing employees.
20. Commercial Loans Serviced per

Centralized Loan Servicing Employee
Number of commercial loans serviced per month
divided by number of centralized loan servicing
employees.
11. Average Days to Approval

Indicates the average number of days required for a
commercial loan to be approved
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Commercial Banking
Commercial Lending [cont.]
21. Commercial/CRE Loan Balances per
Loan Review Employee
Total value of commercial and CRE loan balances
divided by number of loan review employees.
22. Commercial/CRE Loans per Loan

Review Employee
Number of commercial and CRE loans divided by
number of loan review employees.
Cash Management
23. Internal Cash Management
Usage Ratio
Number of internal cash management users divided
by number of business checking accounts [as a
percentage].
24. Commercial Loan Officers per Cash

Management Sales Employee
Number of commercial loan officers divided by
number.
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Consumer Lending
Loan Processing
1. C
onsumer Loan Production by
Loan Type
Percentage of total consumer loan production,
10. Complete Home Equity Loan

Application Rate
Indicates the percentage of complete home equity
loan applications received from the branches.
by loan type
a. Direct consumer loans
b. Indirect loans
c. Home equity loans
11. Direct Loan Application Decision Rate

Indicates the percentage of direct loan applications
2. Consumer Lending Staff Centralization

Percentage of consumer lending staff that is
12. Home Equity Loan Application

Decision Rate
Indicates the percentage of home equity loan
centralized.
3. Consumer Loans Closed per

Centralized Consumer Employee
Number of consumer loans closed per month divided
by number of centralized consumer loan employees.
4. C
onsumer Loans Closed per Total
Consumer Employee
Number of consumer loans closed per month divided
by total number of consumer loan employees.
5. Indirect Consumer Loans Closed per

Indirect Consumer Employee
N
umber of indirect consumer loans closed per
month divided by number of indirect consumer loan
employees.
6. C
onsumer Loans Serviced per
Servicing Employee
Number of consumer loans serviced per month
divided by number of servicing employees.
7. Direct Loan Applications per FTE

Indicates the number of direct loan applications
completed divided by the number of direct loan full
time employees.
8. H
ome Equity Loan Applications
per FTE
Indicates the number of home equity loan applications
completed divided by the number of home equity loan
full time employees.
processed within two hours.
applications processed within two hours.
13. Dollar Cost per Direct Loan Application

direct loan applications divided by the number of total
direct loan applications.
14. Dollar Cost per Home Equity Loan

Application
home equity loan applications divided by the number
of total home equity applications.
15. Indirect Loan Applications per FTE

Indicates the number of loan applications completed
divided by the number of underwriting/processing full
time employees.
16. Loan Applications System

Decisioned Rate
Indicates the percentage of loan applications which
are auto-decisioned by the system.
17. Loan Application SLA Completion Rate

Indicates the percentage of indirect loan applications
processed within the service level agreement.
18. Dollar Cost per Indirect Loan

Application
indirect loan applications divided by the number of
total indirect loan applications.
9. Complete Direct Loan Application Rate

Indicates the percentage of complete direct loan
applications received from the branches.
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Consumer Lending
Sales
19. Proposal Acceptance Rate
Indicates the percentage of proposals accepted by
the client.
20. Dollar Cost per Dealership Proposal

Indicates the total employee expense of creating
proposals divided by the number of total proposals.
21. Number of Sales Calls per FTE

Indicates the number of sales calls completed divided
by the number of sales full time employees.
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Merchant Services
Sales
1. Number of Accounts Sold and Referrals
Handled per FTE
Indicates the number of accounts sold and referrals
handled divided by the number of inside/outside sales
2. Missing Documentation Rate

Indicates the percentage of accounts that are missing
documentation.
3. Referral Completion Rate

Indicates the percentage of referrals worked within
twenty-four hours.
4. Dollar Cost per Referral Handled and

Account Sold
Indicates the total employee expense of handling
referrals and accounts sold divided by the number of
total referrals handled and accounts sold.
Risk Underwriting
5. Number of Active Accounts per FTE
Indicates the number of active accounts divided by the
number of underwriting full time employees.
6. Correct Account Set-up Rate

Indicates the percentage of merchant accounts the are
set-up correctly.
7. Application Decision Rate

Indicates the percentage of applications decisioned
11. Merchant Account Correct Set-up Rate

Indicates the percentage of new merchant accounts
the are set-up correctly.
12. Average Speed of Answer Rate

Indicates the percentage of inbound calls that are
answered within thirty seconds.
13. Dollar Cost per Customer Call

customer calls divided by the number of total
customer calls.
Reconciliation
14. Number of Settlements per FTE
Indicates the number of settlements completed
divided by the number of reconciliation full time
employees.
15. Settlements Cleared Rate

Indicates the percentage of settlements that are
cleared by the stale date.
16. Reconciliation Completion Rate

Indicates the percentage of reconciliations submitted
to reconciliation control by the due date.
17. Dollar Cost per Settlement

settlement transactions divided by the number of total
settlement transactions.
within one day.
8. Dollar Cost per Active Account

Indicates the total employee expense of handling active
accounts divided by the number of total active accounts.
Customer Service
9. Inbound Calls Handled per FTE
Indicates the number of inbound calls completed divided
by the number of customer service full time employees.
10. Outbound Calls Handled per FTE

Indicates the number of outbound calls completed
divided by the number of customer service full time
employees.
29
mc.fso2.1110
30
October 2011
Mortgage Lending
Loan Processing
1. Mortgage Loan Applications per
Underwriter
Number of mortgage loan applications per month
divided by number of underwriters.
2. Mortgage Loan Applications per

Processor
Number of mortgage loan applications per month
divided by number of processors.
3. Mortgage Loans Funded per Originator

Number of mortgage loans funded per month divided by
number of originators.
4. Mortgage Loans Closed per Closer

Number of mortgage loans closed per month divided by
number of closers.
5. Mortgage Loans Serviced per Servicing

Employee
Number of mortgage loans serviced per month divided
by number of servicing employees.
31
mc.fso2.1110
32
October 2011
Wealth Management
1. Private Bank Offering
Yes/no metric indicating whether the bank offers a
private banking program
a. Centralized
b. At branch level
2. Private Bank Assets

Total company assets from private bank operations.
3. Private Bank Asset Percentage
Private bank assets divided by total firm-wide assets
[as a percentage].
4. Private Bank Employee Head Count

Total number of employees in all departments of
private bank operations including customer-facing as
well as back office employees [at all locations].
5. Private Bank Employee Percentage

Number of private bank employees divided by total
number of firm-wide employees [as a percentage].
6. Employee Breakdown
Approximate breakdown of private bank employees
a. Front office
b. Back office
- New accounts
- Account servicing
- Reporting
- Support
- Other [please specify]
7. Front Office to Back Office Staff Ratio

Number of front office private bank employees divided
by number of back office private bank employees.
8. Back Office Function Checklist

Indicates where specific back office functional areas

are performed
PB = Within the private bank back office
EC = Elsewhere within the company
FO = Function outsourced
NP = Function not performed
NA = Data not available
a. New account opening
b. Account servicing
c. Account fees
d. Reporting [both external and internal]
e. Support [HR, IT, Admin., etc.]
f. Other [please specify]
9. Private Banking Branches

Number of private bank branch offices supported by
back office operations.
10. Credit/Loan Products Offered

Yes/no metric indicating private bank offerings

a. Secured
b. Unsecured
c. Letters of Credit
d. Syndication
e. Other [please specify]
11. Investment Products Offered


a. DDA/cash management accounts

b. Equities
c. Mutual funds
d. 401[k]
e. Keogh
f. Government securities
g. Commodities
h. Fixed income
33
mc.fso2.1110
Wealth Management
12. Services Offered
18 . Account Opening Documentation

Indicates which documents are required by the
private bank to open a new account

a. Tax reports
b. Bank statements
a. Estate planning
b. Trust services
c. Custody accounts
d. Tax planning
e. Tax return preparation
f. Escrow services
g. SEC filings
h. Legal services
i. Investment advisory
j. Bill paying
k. Checking account
l. Other [please specify]
13. Private Banking Qualifications

Minimum qualifications for private banking customers
a. Household income
b. Net worth
14. Number of Customers

Number of external customers [primary individuals
and trusts] supported by the private bank back office
a. Customers in the U.S.
b. Customers worldwide
performed within the company

PF = Within the private bank front office
BO = Company-wide back office
a. Transaction execution
b. Account closings
c. Customer service/account inquiry
d. Non-financial information changes
20. Factors for Determining Billing

Indicates factors that affect determination of the fee
15 . Number of Private Bank Accounts

Number of customer accounts supported by the
for account transactions

a. Frequency of transaction execution
b. Complexity of transaction
c. Other [specify]
private bank back office

a. Accounts in the U.S.
b. Accounts worldwide
21. Method of Billing

Indicates method by which billing for the private bank
16. Customer Account Breakdown

Breakdown of external customer accounts based on

account type
a. Trust
b. Advisory
c. Custody
17. Average Account Balance

Total value of private banking accounts [all services
combined] divided by number of private banking
customers.
34
October 2011
19. Account Servicing Checklist

Indicates where certain service-related functions are
is conducted
a. Statement/bill sent to customer
b. Direct withdrawal from account
22. Billing Determination

Indicates where billings are determined in the

private bank
a. Front office personnel
b. Back office personnel
c. Fee/billing-specific back office personnel
d. Automatic determination [via information system]
Wealth Management
23. Fee Processing
Indicates who collects and processes fees associated

with private bank transactions

a. Separate private bank back office billing department
b. Private bank back office [not separate department]
c. Company-wide back office billing department
24. Customer Statement Preparation

Percentage of statements prepared at each of the
following locations
a. Private bank reporting department
b. Other private bank back office departments
c. Elsewhere within the company [company-wide
reporting function, etc.]
d. Outsourced to an external vendor
25. Non-Customer Reporting

Indicates where certain non-customer

reporting occurs
a. State
b. Federal
c. Other financial service organizations
26. Reporting Method

Method by which private bank information is
communicated
a. Electronic delivery [information downloaded directly
to external location]
b. Mail [physical copy sent]
c. Fax [physical copy sent]
27. Self-Reported Metrics

Yes/no metric identifying the performance metrics

used to manage the private bank service supply chain

a. Overall cycle times [please specify]
b. Departmental costs
c. Cost per transaction
d. Error reports
e. Customer satisfaction surveys [internal]
f. Customer satisfaction surveys [external]
g. External benchmarking comparisons
h. System availability reports [system uptime]
28. Support Functions Location

Indicates where each of the following support

functions is located
a. Information technology/systems administration
b. Human resources
c. Accounting
d. Legal
29. Business Development Cycle Time

Indicates the amount of time required to close a deal,
between receiving a lead/referral and opening a new
account.
30. Number of Meetings per FTE

Indicates the number of new business development
meetings completed divided by the number of
business development full time employees.
31. New Business Conversion Rate

Indicates the percentage of prospects that become
IWM clients.
32. Client Feedback

Call to a client or lost prospect with a short survey
to recognize strength/weaknesses of the pitch and
sales process.
33 . Dollar Cost per Business

Development Meeting
Indicates the total employee expense of business
development meetings divided by the number of total
business development meetings.
34. Asset Base Change Rate

Indicates level and quality of service delivered to client
that affects retention rates.
35. Client Feedback Survey

Based on sampling surveys.
36. Under-performing Account Rate
Indicates the percentage of accounts where
investment performance deviates from expectation as
reported in the dispersion report.
35
mc.fso2.1110
Wealth Management
37. Client Response/Resolution Rate
Indicates percentage of responses to customer
requests that meet existing service level agreement
standards.
38. Dollar Cost per Client Transaction

Indicates the total employee expense of all client
interactions divided by the number of total client
interactions.
39. Number of Transactions per FTE

Indicates the number of transactions completed
divided by the number of administrative full time
employees.
40. Transaction Error Rate

Indicates the percentage of transactions that require
follow up or re-work.
41. New Account Set-up Rate

Indicates the average time required to complete a new
account set-up.
42. Dollar Cost per Transaction

transactions divided by the number of total
transactions.
43. Number of Client Interactions per FTE

Indicates the number of client interactions divided by
the number of client advisor full time employees.
36
October 2011
Back Office
Back Office Characteristics
1. Number of Accounts Supported
Number of customer accounts supported by the
back office.
a. Accounts in the U.S.
b. Accounts worldwide
2. D
eposit Accounts per Deposit Back
Office Employee
N
umber of deposit accounts divided by number of
deposit back office employees.
3. In-House vs. Outsourced Core

Processing
Indicates how the bank performs its core processing.
IN = In house
4. In-House vs. Outsourced Item

Processing
Indicates how the bank performs its item processing
IN = In-house
5. D
eposit Accounts Supported per Item
Processing Employee
Number of deposit accounts divided by number of
item processing employees.
6. Service Transaction Breakdown

Total volume of service transactions conducted by the

back office per year

b. Account closings
7. Manual Work Percentage

Percentage of back office processing work that must
be performed manually.
Management
8. Back Office Management Levels
Number of management levels in the back office from
the department head to the lowest management level.
9. Number within Each Mgmt. Level

N
umber of back office employees within each
management level.
10. Direct Reports to Management Staff

Average number of back office employees who
report directly to each individual management-level
employee.
Communication
11. Method of Back Office Notification
Means by which the back office is notified of

transactions initiated by the front office

a. Paper form
b. Electronic form
c. Phoned. Fax
12. Service Notification

Indicates who notifies the back office of account
service functions to be executed
a. Front office personnel
b. External customer
13. Notification Method

Method of notifying back office personnel of account

service needs
a. Phone
b. Fax
c. E-mail
d. Internal mail
14. Number of Notification Points

Number of locations that can be notified for certain

account service functions

b. Account closings
37
mc.fso2.1110
Back Office
Customer Statements
15. Method of Statement Delivery
Percentage breakdown of how customer statements

are sent.
a. Regular U.S. mail
b. Express mail [via courier service such as FedEx]
c. Fax
d. Not sent [by customer request]
16. Late Statements

Percentage of statements sent out that arrive later
than scheduled [due to such problems as printing
errors, wrong address, etc.]
17. Statement Accuracy

Percentage of account statements that require rework.
Feedback
18. Feedback Solicited
Yes/no metric indicating whether any form of external
or internal feedback is solicited regarding back office
processes
a. External
b. Internal
19. Frequency of Feedback

Frequency of solicited feedback
a. Monthly
b. Annually
38
October 2011
Collections
Overall
1. Dollars Recovered per FTE
Indicates the number of overall accounts worked
divided by the number of overall collections full time
employees.
2. P
ercent Delinquent and Dollar Amount
Charged-off Rate
Indicates the percentage of delinquent accounts that
are charged off.
3. Calls per Total Accounts Worked

Indicates the average number of calls for total loan
accounts worked.
4. Dollar Cost per Dollar Recovered

Indicates the total employee expense of recovering
a certain dollar amount divided by the number dollar
recovered.
39
mc.fso2.1110
40
October 2011
Deposit Operations
Automated Clearing House
1. ACH Transactions Processed per FTE
Indicates the number of ACH transactions processed
divided by the number of ACH origination full time
employees.
2. ACH Transaction Errors Rate

Indicates the percentage of ACH transactions that
contain errors.
3. A
CH Transactions Processed Same
Day Rate
Indicates the percentage of ACH transactions that are
processed on the same day received.
4. Dollar Cost per ACH Transaction

ACH transactions divided by the number of ACH
transactions.
Adjustments
5. Adjustment Items Processed per FTE
Indicates the number of adjustment items processed
divided by the number of adjustments full time
employees.
6. Adjustment Errors
Indicates the percentage of adjustments that
contain errors.
7. 72 Hour Adjustment Rate

Indicates the percentage of adjustments that are
processed within 72 hours.
8. D
ollar Cost per Total Adjustment Items
Processed
total adjustment items divided by the number of items
processed.
Customer Information System

9. CIS Items Processed per FTE
Indicates the number of CIS items processed divided
by the number of CIS full time employees.
10. Errors in CIS Items Processed

Indicates the percentage of errors that are in CIS items
processed.
11. 24 Hour Set-up Rate

Indicates the percentage of name and address
set-ups to new accounts that are completed within
24 hours.
12. 48 Hour Set-up Rate

Indicates the percentage of name and address
set-ups to new accounts that are completed within
48 hours.
13. Dollar Cost per CIS Item Processed

CIS items divided by the number of items processed.
Commercial Deposits
14. Transactions Processed per FTE
Indicates the number of commercial transactions
processed divided by the number of commercial
deposit full time employees.
15. Account Analysis Mailing

Turnaround Rate
Indicates the percentage of account analysis
mailings that are sent out by the tenth business day
of each month.
16. Disbursement Delivery Rate

Indicates the percentage of controlled disbursement
information delivered to the customer the same day.
17. Reconciliation Check Mailing Rate

Indicates the percentage of partial check
reconciliations that are mailed to the customer by the
10th business day following the accounting cycle.
18. Dollar Cost per Transaction Processed

commercial deposit transactions divided by the
number of transactions processed.
41
mc.fso2.1110
Deposit Operations
Corporate Online
19. Files Processed per FTE
Indicates the number of files processed divided by the
number of corporate online full time employees.
20. File Errors

Indicates the percentage of files with errors of all files
processed.
21. Files Processed Same Day Ratio

Indicates the percentage of corporate online files that
are processed the same day.
22. Dollar Cost per File Processed

corporate online files divided by the number of files
processed.
Data Entry
27. Total Deposits Balanced per FTE

Indicates the number of deposits balanced divided by
the number of deposit accounting full time employees.
28. Deposit Error Rate

Indicates the number of deposit items that
contain errors.
29. Deposits Balanced Same Day Rate

Indicates the percentage of deposits that are balanced
the same day received.
30. Cost per Deposit Processed

deposits divided by the number of deposits
processed.
Imaging
23. Data Entry Items per FTE

Indicates the number of data entry items processed
divided by the number of data entry full time
employees.
24. Data Entry Items Error Rate

Indicates the number of data entry items that
contain errors.
25. Items Completed Same Day Ratio

Indicates the percentage of data entry items
completed the same day.
26. Dollar Cost per Data Entry Item

data entry items divided by the number of items
processed.
42
October 2011
Deposit Accounting
31. Items Processed per FTE

Indicates the number of items imaged divided by the
number of imaging full time employees.
32 . Imaged Item Errors Reported

Indicates the percentage of imaged items that
contain errors.
33. Items Processed Same Day Ratio

Indicates the percentage of imaging items that are
processed the same day.
34. Dollar Cost per Item Imaged

Indicates the total employee expense of imaging items
divided by the number of items imaged.
Item Processing
Item Processing and Lockbox
1. Total Items Processed Per FTE
Indicates the number of items processed divided by
the number of item processing and lockbox full time
employees.
2. POD Errors
Indicates the percentage of POD errors.
3. Posting File Before Cutoff Rate
Indicates the percentage of files being posted before
the cutoff time.
4. Dollar Cost per Total Items Processed

Indicates the total employee expense of all items
processed divided by the number of items processed.
Lockbox Item Processing & Support

5. Total LB and Support Items per FTE
Indicates the number of total lockbox and support
items processed divided by the number of lockbox
item processing full time employees.
6. Lockbox Errors
Indicates the percentage of lockbox transactions
with errors.
7. L
ockbox Accounts Processed Same
Day Rate
Indicates the percentage of lockbox account items
that are processed the same day as received.
8. D
ollar Cost per Total LB and Support
Items Processed
Indicates the total employee expense of total lockbox
and support items processed divided by the number
of total items processed.
MICR Quality Processing

9. MICR Notices per FTE
Indicates the number of MICR notices divided by
the number of MICR quality processing full time
employees.
10. MICR Notices Errors

Indicates the number of MICR notices that
contain errors.
11. MICR Notices Processed Same

Day Rate
Indicates the percentage of MICR notices that are
processed the same day as received.
12. Dollar Cost per MICR Notice

MICR notices divided by the number of MICR notices.
Statement Rendering
13. Statements Rendered per FTE
Indicates the number of statements rendered divided
by the number of statement rendering full time
employees.
14. Statement Rendering Errors

Indicates the percentage of statements that are
rendered with errors.
15. EOM Cycle Date Rate

Indicates the percentage of insurance claims
processed within the service level commitment.
16. Statement Cycle Rate

17. Dollar Cost per Statement Rendered

Indicates the total employee expense of rendering
statements divided by the number of statements
rendered.
43
mc.fso2.1110
Item Processing
Wire Transfer Processing
18. Wire Transfers per FTE
Indicates the number of wire transfers processed
divided by the number of wire transfer processing full
time employees.
19. Wire Transfer Errors

Indicates the percentage of wire transfers that
contain errors.
20. Wire Transfers Completed Same

Day Rate
21. Dollar Cost per Wire Processed

wire transfers divided by the number of wires
processed.
44
October 2011
Loan Operations
Call Center
1. Calls and Special Messages per FTE
Indicates the number of calls and special messages
handled divided by the number of call center full time
employees.
2. Call Abandonment Rate

Indicates the percentage of calls that are abandoned
before answered.
3. Call Answer Rate

Indicates the percentage of calls that are answered in
30 seconds or less.
4. First Call Resolution Rate

Indicates the percentage of first call resolutions.
5. Dollar Cost per Call
Indicates the total employee expense of handling
customer calls divided by the number of customer
calls.
Collateral
6. Titles and Mortgages Input per FTE
Indicates the number of titles and mortgages input
divided by the number of collateral full time employees.
7. Number of Input Errors

Indicates the percentage of collateral requests that
contain input errors.
8. P
ercent of Inputs Completed Within
3 Business Days
Indicates the percentage of collateral input requests
that are completed within 3 business days.
9. Dollar Cost per Input

Indicates the total employee expense of collateral
inputs divided by the number of collateral inputs.
Commercial Servicing
11. Number of Errors Identified

Indicates the percentage of new loans boarded that
contain errors.
12. New Loans Boarded Rate

Indicates the percentage of new loans that are
boarded in less than four days.
13. Same Day Payment Posting Rate

Indicates the percentage of commercial payments that
are posted the same day as received.
14. Dollar Cost per Item Processed

commercial servicing transactions divided by the
number of transactions processed.
Consumer Loan Research

15. Research Requests per FTE
Indicates the number of research requests divided
by the number of consumer loan research full time
employees.
16. 5 Day Research Request

Completion Rate
Indicates the percentage of loan research requests
which require 5 or more days to process.

Completion Rate
which require 3 or less days to process.

Completion Rate
which require 4 or less days to process.
19. Dollar Cost per Research Request

Indicates the total employee expense of performing
research requests divided by the number of research
requests.
10. Items Processed per FTE

Indicates the number of items processed divided
by the number of commercial servicing full time
employees.
45
mc.fso2.1110
Loan Operations
GL Research
20. Research Items Processed per FTE
Indicates the number of research items processed
divided by the number of general ledger research full
time employees.
21. Errors Reported

Indicates the percentage of reconciliation errors that
are reported by general ledger research.
22. Reconciliation Clearing Rate

Indicates the percentage of reconciliations that are
cleared within 10 days.
23. Dollar Cost per Research Request

Indicates the total employee expense of researching
general ledger requests divided by the number of
research requests.
Home Equity Post Closing

24. Total HE Lines/Loans Set Up per FTE
Indicates the number of total home equity lines and
loans setup divided by the number of home equity
post close full time employees.
25. Setup Error Rate

Indicates the percentage of lines and loans that are
26. Percent of Lines & Loans Posted

Same Day
Indicates the percentage of lines and loans that are
27. Dollar Cost per New Home Equity

Line/Loan Setup
Indicates the total employee expense of new home
equity line and loan setups divided by the number of
line and loan setups.
46
October 2011
Lease Accounting
28. Total Customer Statements Generated
per FTE
Indicates the number of total customer statements
generated divided by the number of lease accounting
29. Statement Errors

Indicates the percentage of leasing statements that
contain errors.
30. Statement Cycle Mailing Rate

Indicates the percentage of lease statements that are
mailed within the service level agreement.
31. Dollar Cost per Customer Statement

Generated
Indicates the total employee expense of customer
statement generation divided by the number of
statements generated.
New Loans Direct-Indirect

32. New Loans Processed per FTE
Indicates the number of new loans processed divided
by the number of consumer credit collections full time
employees.
33. Incorrect Items

Indicates the number of incorrect items found on a
loan request.
34. New Loans Processed Same Day Rate

Indicates the percentage of new direct and indirect
consumer loans that are processed the same day as
received.
35. Dollar Cost per New Loans Processed

Indicates the total employee expense of new direct
and indirect loans processed divided by the number of
new direct and indirect loans processed.
Loan Operations
Payments
36. Total Payments Posted per FTE
Indicates the number of total payments posted divided
by the number of payments full time employees.
37. Payment Posting Errors

Indicates the percentage of payments that are posted
with errors.
38. Percent of Payments Posted the

Same Day
Indicates the percentage of payments that are posted
the same day as received.
39. Dollar Cost per Total Payments Posted

Indicates the total employee expense of posting
payments divided by the number of payments posted.
Payoffs
40. Pay-Offs/Downs per FTE
Indicates the number of payoffs and paydowns divided
by the number of payoff full time employees.
41. Payoff Error Rate

Indicates the percentage of payoffs that are posted
with errors.
42. Mortgage Payoff Rate

Indicates the percentage of mortgage payoffs that are
processed in less than 10 days.
43. Consumer Payoff Rate

Indicates the percentage of consumer payoffs that are
processed in less than 3 days.
44. Dollar Cost per Pay-Off/Down

Indicates the total employee expense of pay-offs and
pay-downs processed divided by the number of payoffs and pay-downs processed.
47
mc.fso2.1110
48
October 2011
Wealth Management Support

Operations
1. Incoming Requests per FTE
Indicates the number of incoming requests worked
divided by the number of operations full time
employees.
2. Error Rate
Indicates the percentage of incoming requests to
operations that contain errors.
3. Vendor Error Rate

Indicates the percentage of incoming items from
vendors to operations that contain errors.
4. Average Setup Rate

Indicates the average time to: Set-up and fund a
new account, close and account, and set-up a
Weblink client.
5. Dollar Cost per Request

requests divided by the number of requests
processed.
49
mc.fso2.1110
50
October 2011
Support Groups
Contact Center
1. Calls per Contract Center Employee
Number of telephone calls per day divided by number
of contact center employees.
2. Calls per Customer

Number of telephone calls per year divided by number
of retail customers.
3. Call Handling Method

Percentage of telephone calls handled by each of
the following
a. Branch customer service representatives
b. Voice response system
c. Centralized contact center
4. Expense per Call

Direct cost per telephone call answered by each of

the following
a. Branch customer service representative
b. Voice response system
c. Centralized contact center
Training
5. Training Head Count Ratio
Total firm-wide employees divided by number of
training employees.
6. External Training Budget per Employee

External training budget divided by total number of
firm-wide employees.
7. O
perations/Regulatory
Procedural Training
Yes/no metric indicating whether the bank offers

operations/regulatory training
a. Tellers [new]
b. Tellers [tenured]
c. Platform [new]
d. Platform [tenured]
e. Managers [new]
f. Managers [tenured]
8. Training Expense per Employee

Training expense divided by total number of firm-wide
employees
a. New employees
b. Tenured employees
9. Training Time for Customer Contact

Average training time [in hours] received prior to
customer contact
a. Branch tellers
b. Branch platform
c. Call center
Marketing
10. Retail Service Marketing Expense
Expense for advertising and promotion of each retail

service
a. Debit cards
b. Internet/PC banking
c. Investment services
d. Personal trust
e. Telephone banking/call centers
f. Bill pay/bill presentment
g. Cash management
h. Small business banking
Information Technology
11. Technology Spending as a Percentage
of Assets
Total technology expense divided by total assets [as a

percentage]
a. Core
b. Data communications
c. Electronic delivery
d. Infrastructure
e. Strategic [banking]
f. Strategic [non-banking]
12. Technology Spending as a Percentage

of Overhead
Total technology expense divided by total overhead

[as a percentage]
a. Core
b. Data communications
c. Electronic delivery
d. Infrastructure
e. Strategic [banking]
f. Strategic [non-banking]
51
mc.fso2.1110
Support Groups
13. System Architecture
Indicates the organizational structure of the banks
information technology
a. Client/server
b. Mainframe database
14. Systems Used

Indicates which system[s] are used to keep track
of all customer and account information. Examples
include FiServ, PegaSystems, Sungard, etc.
15. Degree of Customization

If company uses an off-the-shelf information
technology product, this metric indicates the extent of

product customization necessary to use the product
effectively
a. No customization
b. Little customization; vendor still can service [and
install new releases]
c. Heavy customization; internal staff needed to
maintain and update
16. Electronic Tracking Capabilities

Yes/no metric indicating whether the bank

electronically tracks each of the following

a. Account inquiries/customer service questions
b. New account process
c. Account servicing
d. Payments
Administrative
17. Administrative Outsourcing

Yes/no metric indicating whether any part of each
administrative role is outsourced

a. Telecommunications management
b. WAN management
c. Facilities management
d. PC support
e. Statement rendering
f. Loan review
g. Item processing
h. Benefits administration
i. Internal audit
j. Compliance
52
October 2011

Banking Metrics

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Banking Metrics

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Banking Metrics

This Catalog Describes The Labs Benchmarking

B. Firm-wide Benchmarking Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

C. Banking Functional and Business Process Metrics . . . . . . . . . . . . . . . . . . . . 15

Lab Consulting Partnership, Inc. All Rights Reserved

The Labs Approach to Benchmarking

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About this Benchmarking Metrics Catalog...

Field Sales &

Print and Mail

Helpful Tips for Performance Measurement

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The Labs Typical Benchmarking Project: Four Phases

Phase II: Develop the Shell Document

Phase III: Conduct Field Research/Provide Updates

Phase IV: Validate and Finalize

Lab Consulting Partnership, Inc. All Rights Reserved

Lab Consulting Partnership, Inc. All Rights Reserved

4. Total Employee Head Count

6. Total Operating Expense per Employee

9. Total Operating Expense

10. Total Employee Head Count

11. New Hires

17. Functions within the Banking Function

13. Lines of Business

a. Investments [e.g., investment management]

14. Largest Revenue Source

15. Banking Organization

16. Geographic Locations

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Banking units at peer companies.

18. Product or Service Location

20. Direct Reports

21. Outsourcing of Banking Functions

22. Recent Relocation Initiatives

23. Site Selection

24. Relocation Candidates

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Banking Functional and Business Process Metrics

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Retail Banking Branches

Number of retail customers per each of the following

2. Retail Banking Expense

Total non-interest expense per each of the following

12. Customer Exit Sampling

3. Revenue per Retail Customer

Gross revenue divided by number of retail customers.

4. Retail Banking Efficiency Ratio

Non-interest expense divided by gross revenue [in

14. Dollar Cost per Teller Transaction

5. Retail Banking Return on Assets

Net income divided by total assets [in percentage

6. Banking Relationship Time Span

Percentage of retail customers remaining with the

Indicates the number of new accounts opened divided

8. Customer Exit Sampling

10. Dollar Cost per New Account Opened

16. Branch Banking Staff Breakdown

new account openings divided by the number of total

Retail Banking Branches

the following positions

18. Retail Banking Staff Turnover

e. Full-time, benefited tellers

19. Days to Fill Vacant Positions

17. Functions within the Banking Function

14. Dollar Cost per Teller Transaction

11. Number of Implementation Clients

16. Number of Web Express Calls Handled