Key performance indicators (KPIs) are incredibly relevant to the banking sector, as businesses compete to reach specific targets and secure repeat business.
Particularly in the retail banking sector, where businesses are typically focused on managing the finances of individuals, setting clear KPIs will ensure that leaders are fully aware of whether or not the company is on track to meet its targets.
There is a danger; however, that business leaders are setting KPIs that will not benefit the business. In fact, unrealistic or excessive KPIs can do more damage to operations as they can demotivate and disengage employees at all levels.
To ensure that KPIs are relevant and accurate to what the business is trying to achieve, leaders should be regularly reviewing their expectations in line with how the company is progressing, and structure their retail banking training programmes to accommodate them.
What is a KPI?
A key performance indicator is a measurement of how well a business is performing when compared to the goals set out by those at the top of the hierarchy.
In retail banking, for example, a key performance indicator could be analysing the operating profit for the last six months, compared to the expected operating profit for the year. In doing this, leaders will gain an idea of whether or not they are on track.
Focusing on the right KPIs in the retail banking sector
Far too many businesses will mistake performance indicators for key performance indicators. While performance indicators will be focused on every area of operation, KPIs will only focus on the areas that ultimately determine the success or failure of the business.
Take a retail banking business, for example. Their focus will be more related to individual relationship management compared to a corporate bank that will look to drive into new markets. In this instance, it would make sense for the retail bank’s KPIs to incorporate targets on resolving customer issues and improving client service long term.
Of course, in an ideal world, a bank would be able to set clear and competitive KPIs for every single aspect of their operations, from revenue to asset management, innovation and customer service. By setting too many KPIs, however, it is likely that employees will lose focus by attempting to work on everything as part of a retail banking training course, making them feel under pressure, which can be detrimental to operations.
How retail banking training programmes can help businesses set the right KPIs
We’ve previously discussed how structuring workplace training programmes to focus on specific KPIs can help to achieve long term success. For the retail banking industry, in particular, a training programme can be an effective way to clearly outline specific KPIs to employees and begin to implement them throughout the workplace.
Setting up a retail banking training programme that is directly related to the KPIs expected of the workforce in several areas is also more likely to deliver a significant return on investment from these courses, as well as giving employees a clear focus within their roles, which in turn can boost morale.
At MDA Training, we provide experiential learning solutions for businesses in the banking sector that are aligned to specific goals and KPIs. In utilising experiential methods, we are able to construct a programme that motivates and engages employees at all levels. For more information, view our services page here.
To give a workforce the best chance of achieving goals related to the broader business; it is imperative that KPIs are accurate, realistic and engaging. For retail banking businesses, in particular, the implementation of the right KPIs can take a business to new heights and maintain a positive workplace environment.