Tracking the right financial services Key Performance Indicators (KPIs) are essential for financial services and fintech companies to monitor performance, optimize operations, and align cross‑functional teams. Below is a comprehensive financial services KPI glossary for modern businesses covering everything from profitability and efficiency to risk management and customer experience.
Here is our comprehensive financial services KPI glossary with corresponding formulas (use ‘Command + F’ to find a metric quickly):
Net Interest Margin (NIM)
Definition: Measure of the difference between interest earned on assets and interest paid on liabilities, relative to earning assets.
Formula: (Interest Income − Interest Expense) / Average Earning Assets
Return on Assets (ROA)
Definition: Efficiency metric indicating how well a company uses its assets to generate profit.
Formula: Net Income / Average Total Assets
Return on Equity (ROE)
Definition: Measure of profitability relative to shareholders’ equity.
Formula: Net Income / Average Shareholder’s Equity
Net Profit Margin
Definition: Percentage of revenue remaining after all expenses have been deducted.
Formula: (Net Profit / Total Revenue) × 100
Revenue per Customer
Definition: Average revenue generated per customer over a period.
Formula: Total Revenue / Total Customers
Operating Margin
Definition: Proportion of revenue left after covering operating expenses.
Formula: (Operating Income / Revenue) × 100
Cost‑to‑Income Ratio
Definition: Efficiency ratio comparing operating expenses to operating income.
Formula: Operating Expenses / Operating Income
Fee Income as % of Revenue
Definition: Share of total revenue derived from fees.
Formula: (Fee Income / Total Revenue) × 100
Customer Retention Rate
Definition: Percentage of customers retained over a period.
Formula: (Number of Customers Retained / Total Customers) × 100
Customer Acquisition Cost (CAC)
Definition: Average cost to acquire a new customer.
Formula: Total Sales & Marketing Expenses / Total New Customers
Net Promoter Score (NPS)
Definition: Measure of customer willingness to recommend your services.
Formula: % Promoters − % Detractors
Customer Lifetime Value (CLV)
Definition: Predicted total revenue from a customer over their relationship.
Formula: Average Revenue per Customer × Customer Lifespan
Average Account Balance
Definition: Average balance held across customer accounts.
Formula: Total Account Balances / Total Number of Accounts
Customer Churn Rate
Definition: Percentage of customers lost during a period.
Formula: (Customers Lost / Total Customers at Start) × 100
Cross‑Sell Ratio
Definition: Average number of additional products sold per customer.
Formula: Number of Additional Products per Customer
Loan‑to‑Deposit Ratio (LDR)
Definition: Indicator of liquidity and lending aggressiveness.
Formula: Total Loans / Total Deposits
Non‑Performing Loan (NPL) Ratio
Definition: Proportion of loans in default or close to default.
Formula: Non‑Performing Loans / Total Loans
Loan Default Rate
Definition: Percentage of loans that default in a period.
Formula: (Number of Defaulted Loans / Total Loans) × 100
Cost of Funds
Definition: Average cost to borrow funds.
Formula: Interest Expense / Total Interest‑Bearing Liabilities
Credit Utilization Rate
Definition: Share of available credit being used by customers.
Formula: (Total Credit Used / Total Credit Limit) × 100
Average Loan Size
Definition: Mean amount of loans issued.
Formula: Total Loan Amount / Total Number of Loans
Loan Processing Time
Definition: Average time taken to approve and disburse loans.
Formula: Total Time Taken to Approve Loans / Total Loans Processed
Regulatory Compliance Rate
Definition: Proportion of audited processes meeting regulatory standards.
Formula: (Compliant Processes / Total Processes Audited) × 100
Fraud Detection Rate
Definition: Effectiveness in identifying fraudulent transactions.
Formula: (Number of Fraud Cases Detected / Total Transactions) × 100
Capital Adequacy Ratio (CAR)
Definition: Measure of a bank’s capital relative to its risk‑weighted assets.
Formula: (Tier 1 + Tier 2 Capital) / Risk‑Weighted Assets
Liquidity Coverage Ratio (LCR)
Definition: Ability to meet short‑term obligations with high‑quality liquid assets.
Formula: (High‑Quality Liquid Assets / Total Net Cash Outflows) × 100
Operational Risk Loss Ratio
Definition: Losses from operational failures relative to revenue.
Formula: (Operational Losses / Total Revenue) × 100
Debt‑to‑Equity Ratio
Definition: Leverage metric comparing total debt to shareholder equity.
Formula: Total Debt / Total Equity
Accounts Opened per Employee
Definition: Efficiency of account origination activities.
Formula: Total Accounts Opened / Total Employees
Revenue per Employee
Definition: Productivity measure of revenue generated per employee.
Formula: Total Revenue / Total Employees
Average Transaction Time
Definition: Mean duration to complete a customer transaction.
Formula: Total Transaction Time / Total Transactions
Branch Utilization Rate
Definition: Percentage of branch capacity used for transactions.
Formula: (Branch Transactions / Total Branch Capacity) × 100
Cost per Transaction
Definition: Average operational cost to process each transaction.
Formula: Total Operational Costs / Total Transactions
Assets Under Management (AUM)
Definition: Total market value of assets managed on behalf of clients.
Formula: Total Value of Assets Managed by the Business
Portfolio Yield
Definition: Income generated by an investment portfolio.
Formula: (Interest + Dividends + Realized Gains) / Portfolio Value
Investment Return Rate
Definition: Net performance of investments relative to costs.
Formula: (Investment Gains − Investment Costs) / Investment Costs × 100
Portfolio Diversification Ratio
Definition: Degree to which assets are spread beyond core holdings.
Formula: (Total Value of Non‑Core Assets / Total Portfolio Value) × 100
Wealth Management Penetration
Definition: Proportion of customers using wealth management services.
Formula: (Wealth Management Customers / Total Customers) × 100
Digital Adoption Rate
Definition: Share of transactions conducted via digital channels.
Formula: (Digital Transactions / Total Transactions) × 100
Mobile App Usage Rate
Definition: Share of customers engaging via mobile app.
Formula: (Active Mobile App Users / Total Customers) × 100
Downtime as % of Operating Hours
Definition: System availability metric.
Formula: (System Downtime / Total Operating Hours) × 100
Average Time to Resolve IT Issues
Definition: Efficiency of IT support in resolving problems.
Formula: Total Time to Resolve Issues / Total IT Issues
Customer Support Response Time
Definition: Average time taken to respond to customer inquiries.
Formula: Total Time to Respond to Customer Queries / Total Queries
Marketing ROI
Definition: Return on investment from marketing activities.
Formula: (Revenue Attributed to Marketing − Marketing Spend) / Marketing Spend × 100
Cost per Lead (CPL)
Definition: Average cost to generate a qualified lead.
Formula: Total Marketing Costs / Total Leads Generated
Lead Conversion Rate
Definition: Percentage of leads that convert into customers.
Formula: (Converted Leads / Total Leads) × 100
Campaign Effectiveness
Definition: Revenue generated per dollar spent on a campaign.
Formula: (Revenue Attributed to Campaign / Campaign Cost) × 100
Sales Conversion Rate
Definition: Percentage of sales closed from total leads.
Formula: (Number of Sales Closed / Total Leads) × 100
Carbon Emissions per Employee
Definition: Environmental impact per staff member.
Formula: Total Carbon Emissions / Total Employees
Green Investment Portfolio
Definition: Share of portfolio dedicated to sustainable investments.
Formula: (Green Investments / Total Portfolio Value) × 100
Energy Consumption per Transaction
Definition: Energy used on average per transaction.
Formula: Total Energy Used / Total Transactions
Paperless Transaction Rate
Definition: Proportion of transactions completed without paper.
Formula: (Digital Transactions / Total Transactions) × 100
First Call Resolution Rate
Definition: Rate at which customer issues are resolved on first contact.
Formula: (Issues Resolved on First Contact / Total Issues) × 100
Customer Satisfaction Score (CSAT)
Definition: Average satisfaction rating from customer surveys.
Formula: Sum of Survey Scores / Total Responses
Average Call Handling Time
Definition: Mean duration of customer support calls.
Formula: Total Time Spent on Calls / Total Number of Calls
Complaint Resolution Rate
Definition: Percentage of customer complaints successfully resolved.
Formula: (Complaints Resolved / Total Complaints) × 100
Abandonment Rate
Definition: Percentage of incoming calls or sessions abandoned before resolution.
Formula: (Abandoned Calls / Total Incoming Calls) × 100
In Closing;
The KPIs in this financial services KPI glossary are the lifeline of any financial services or fintech business. By tracking the right metrics—from profitability and efficiency to risk and customer experience—you gain actionable insights that drive smarter decisions, stronger performance, and sustainable growth. Whether you’re optimizing asset utilization, improving customer engagement, or enhancing operational resilience, this KPI glossary ensures alignment across your teams and clarity on what matters most.
Manually tracking and analyzing these KPIs across disparate systems can be time‑consuming and error‑prone. That’s where Brev.io comes in – every KPI in this Financial Services KPI Glossary can be added to Brev.
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