Like all metric systems, banking metrics are an established way for banks to quantify their performance. Banking metrics, such as performance metrics, should be formulated in accordance with the banks’ objectives, as well as the standards that they set themselves. Banks differ in objectives. Some banks may view customer churn as the basis of success as opposed to some banks that view revenue as an element by which they measure their success rate. There are several categories that help banks organize their report of the metric system. Here are some categories that can be found in a banking metrics report. Knowledge of the following will help CFOs and company leaders better understand the reports provided to them.

General ledger measurements can be found in a bank metrics report. General ledger measurements are considered a fundamental analysis that companies can perform when they are in a normal operating cycle. The data collected here is noted in the balance sheets and in the information of the Bank’s income statement. This type of analysis is necessary as an indicator of the general performance of a Bank; It also gives an idea of ​​the financial status of the organization. General Ledger Measurements presents the following data: Average Balance, Interest Earned Income, Non-Financial Income, and Others.

Account metrics are also found in a bank metrics report. This generally includes the following data: Number of Accounts, Clients, as well as the number of households that avail themselves of the Bank’s services under scrutiny. It also includes both the average balance and the ending balance. Account measurement, unlike general ledger measurement, can be done in any period of time. This subtype of banking metrics can also cross the border of all types of banks, from remote branches to regional organizations.

Another subcategory found in a bank metrics report is cost metrics. Cost measurement is an analysis of the Bank’s costs in General; This subtype provides an overview of the Bank’s income and expenses, whether operating or non-operating.

The calculation and measurement of risk is also presented in a typical bank metrics report. This will help Bank management to know what its expected losses should be in certain areas. It also analyzes general and specific market risks. The general market risks presented in a bank metrics report will give banks the opportunity to make similar comparisons. This means that they can compare their actual and expected loss rates with other banks that operate in the same way as them.

Banking metrics and analytics can be performed by companies specialized in this activity. Delegating this task to companies will take a great burden off the shoulders of a bank’s finance office. Specialized companies will formulate custom banking metrics that are tailored to the needs of a specific bank. Companies also attract customers by promising a “quick view” report. This means that the Bank staff who must review the reports can easily see and understand the data they have collected.