KPI’s to Measure ROI of a Digital Bank in 2021

KPI’s to Measure ROI of a Digital Bank:

While we, as technology providers, always ask customer banks and financial institutions to use “digital channels”, we also place emphasis on determining the ROI of a digital bank after implementing the banking solution.

Here’s a quick guide to finding KPIs and calculating ROI for a digital bank:

KPI 1 – Cost of acquiring a digital customer [CAC]

If you’ve bought a basic banking solution, built a team, hired sales and marketing, do you need to know at what cost you can get a customer? CAC helps you with this and can be calculated as follows:

KPI 2 – Statistics on digital characters

Digital traction methods apply to any digital platform offering digital products and services. Study a digital strategy if it has helped you achieve positive ROI.

For vertical banking, a user can digitally configure KPIs –

1. Number of visitors

2. Number of registered users in mobile applications and web interface

3. Growth in monthly bookings

4. Growth comes from active users every day

5. Increase in monthly active users

6. Conversion rates

7. License License

KPI 3 – Lifetime Value of a typical customer (LTV)

Did you know that banks have the advantage of retaining their customers longer than other sectors? Once a customer logs into your banking platform, the option to stay a little longer is compared to other domains like Fashion or hyperlocal. And it serves as another KPI to measure your digital bank’s performance.

LTV, also known as Lifetime Customer Value (CLV) or Lifetime Value (CLV), is a forecasting tool that estimates the expected revenue a customer can generate over the course of their relationship with your business. This is an essential factor for banks in planning and allocating revenue for retention and engagement.

KPI 4 – Innovation and Expansion

Maybe you can lure a user with a bank account or a loan, but then what? That’s why it’s critical to define a KPI that measures innovation in financial products and helps your customers expand into other products.

For example, if a customer transfers money, a banner can be placed on the same portal indicating that she can use a purchase offer or travel insurance to expand the service.

For this, you have to allocate a small budget and also, based on a certain period, let’s say a quarter, measure how many programs there are for a service or offer.

A larger report was released earlier this year, which you can view here.

We are a technology provider for banks and NBFC is committed to providing solutions that generate positive ROI. If you are looking for one, give us a call.

Translate »