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Top 12 KPIs to track for your bank or credit union branch

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Marc Healy, executive director of retail and marketing
6 min read
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Reading Time: 6 minutes

Retail banking is in a state of flux. Technology-savvy customers are using digital banking platforms more than ever, making it harder to keep people coming into branches. On the one hand, this saves money, as the average digital transaction costs 25 cents, while in-branch transactions average around ten dollars. On the other hand, the loss of in-person interactions can cost your branches valuable customer touch points and selling opportunities. This is why most banks today employ a hybrid strategy, with both traditional branch and digital offerings.

At the heart of all this is customer service. Keeping current customers and attracting new ones requires expert management and top performance at the branch level. But how do you know if your customer service strategy is working? This is where key performance indicator (KPI) tracking comes into play. By monitoring certain metrics, branch managers are able to get a holistic picture of their location’s health and effectuate positive change based on the results.

In this blog post, we will explain the importance of branch-specific credit union and bank KPIs, which branch KPIs should be tracked, and provide some specific recommendations for increasing branch return on investment (ROI).

  • The importance of tracking branch KPIs

    Branches are the heart of financial institutions (FIs). Their performance greatly determines the overall FI’s success. That is why tracking branch KPIs is so crucial. Without access to the appropriate data, branch managers are left guessing as to what adjustments must be made and in what aspects their branch is performing well. Here are some things you can accomplish when using appropriate branch KPIs.

    Gauge the effectiveness of your current services

    How do you know if your current service offering is performing? Appropriate branch KPIs can help determine the effectiveness of your current services and point out any areas for improvement.

    Identify how to keep costs down

    By tracking your spending, you can determine areas where cost reductions are possible. This helps the branch’s bottom line by making operations more efficient and preventing material waste.

    Identify employee training opportunities

    Continuous training is how front-line (FL) employees improve their skills. Not only does the branch benefit from higher-performing FL workers, but the employees also feel more cared for and motivated.

    Right-size your staff

    Having too many employees can lead to fewer hours per employee or unnecessary expenses for the FI, while too few employees can lead to short staffing and a decline in customer service. Either problem can be addressed through the proper KPIs.

    Learn how to attract new customers or members

    While it is important to keep your current customers, churn will occur. Keeping a steady flow of new customers is critical for both replacing customers that have left and growing your branch and FI as a whole.

    Identify cross-selling and upselling opportunities

    One of the main advantages of in-person interactions is the opportunity to upsell or cross-sell. By keeping track of current upsell and cross-sell numbers, branch managers can identify weaknesses in this area and adjust accordingly.

    Drive customer or member loyalty

    Customer and member service can make or break a branch. When customers or members do not feel cared for, they will be open to leaving or actively searching for a new FI. Both qualitative and quantitative data can help create a picture of current member or customer sentiment.

    Ensure customers’ or members’ needs are met

    Half the battle can be knowing what specific customer and member needs are not being met. With accurate KPI tracking, branch managers can see what areas need improvement and which are performing well.

    Respond effectively to customer or member feedback

    Once you know where your gaps are, it is time to effectuate change. Branch KPIs can not only track your entire customer or member journey, but they can also inform the most effective way to respond to customer and member feedback.

    Find and analyze the root cause of any issue

    If you do not know why an issue is occurring, there is little chance of resolving it. Data tracking for KPIs enables branch managers to take either the 10,000-foot view or dive deep into the information. This combination gives branch managers the necessary tools to determine why a problem occurred and how to fix it.

    Identify opportunities for self-service/digitization

    Many customers and members prefer to use digital options such as a website or app rather than coming into the branch for quick transactions. By identifying these opportunities, branch managers can cut down on costs and improve customer or member happiness at the same time.

    Establish a culture of continuous improvement

    At the end of the day, it all comes down to culture. By establishing one that prioritizes continuous improvement, employee and customer satisfaction should increase as both parties feel a high level of investment.

    Top 12 KPIs to Track in Your Branch

    With today’s modern, integrated systems, almost any metric can be tracked and analyzed. Knowing where to start can be tricky given this wealth of information and varying branch needs. Here are some top branch KPIs that can help increase branch ROI.

    Customer satisfaction

    Customer satisfaction levels can be measured through surveys, feedback ratings, and net promoter score (NPS), which reflect how well a branch is meeting customer needs and if they are providing excellent service.

    Customer retention

    Tracking the percentage of customers who continue to use the bank’s services over a specified period is a key indicator of branch health. High retention indicates a strong relationship between the branch and its customers.

    Sales growth

    The growth in sales and revenue generated by each branch should be monitored to gauge their overall performance. Tracking the number of new accounts opened, loan approvals, investment products sold, and other similar services all help inform this metric.

    Cross-selling ratio

    This is a way to find out if your branch is selling additional products or services to existing customers. It measures the effectiveness of a branch’s cross-selling efforts and helps identify opportunities to increase customer engagement.

    Operational efficiency

    This KPI is focused on streamlining processes and reducing operational costs. Metrics such as cost per transaction, average transaction time, and teller productivity are great ways to assess your branch’s operational efficiency.

    Loan quality

    Tracking the number of non-performing loans or delinquency rates can help evaluate the quality of your loans. Lower numbers indicate better underwriting and risk management practices, while higher numbers show areas for improvement.

    Employee productivity

    Branches are only as strong as their FL workers. By tracking metrics such as transactions handled per employee, customer service response time, and average wait time for customers, branch managers can ensure an even workload distribution and the efficient operation of their branch.

    Compliance and risk management

    Failing an audit can be a nightmare for a FI. By tracking past audit findings, compliance violations, and risk incidents, branch managers can get a clear picture of their branch’s past issues and use it to inform future decision-making.

    Branch Profitability

    At the end of the day, your branch needs to be profitable to succeed. Metrics such as revenue growth, cost-to-income ratio, and profit margin all speak to the overall profitability of your branch.

    Digital Engagement

    By embracing digital transformation, FIs evolve to meet current customer preferences. Online banking, mobile app usage, and digital payment transactions are all key indicators that this is taking place.

    Ask the expert: how & why to track KPIs

    How do some of your clients track and analyze KPIs?

    While many FIs still rely on Excel spreadsheets, there is far better technology available today for this purpose. Loan organization systems, deposit systems, and metrics like product per household should be gathered in a centralized repository for easy access and analysis. Employee incentives should also be tied to KPIs and scaled relative to the value of the product sold.

    Who has access to which KPIs, and how do they access them?

    Branch managers should have access to all KPIs relating to their branch in a daily portal. This enables them to know where they are in terms of overall performance. All FL employees should have access to their relevant KPIs and attendant data so they know where they currently stand in relation to their goals.

    Are there any tools or methods that have proven effective for your clients?

    • Having accurate profiles for each customer allows employees to tailor their approach and offerings to their specific needs.
    • Sales incentive plans also prove effective at motivating employees.
    • Customer churn is another good measure of branch health.
    • Ultimately, management will determine the branch culture and productivity, so special attention should be paid to that element as well.

    What are some key qualities of managers who want to improve KPIs?

    Integrity, drive, and knowing when to speak and when to listen are all key qualities in branch managers. They should care about both customer and employee needs, providing the best service for one and development opportunities for the other.

    Knowing which KPIs to track and how to analyze them goes a long way toward improving your bank or credit union’s performance. You should determine which are most relevant for your business and track them in a centralized system in order to fully realize the benefits. This allows branches to be compared to each other, which can help determine what issues are systemic and which are branch-specific. Any changes you make to your branches or approach should be inspired by customer and member experience.

    The team at Element prides itself on providing the best design and build solutions for your FI’s next branch or remodel and also offers consulting solutions for increasing customer engagement. We prioritize taking a consultative approach that identifies all the opportunities and possibilities of your branch. If you want to learn more about our services, please contact us and we will get back to you as soon as possible.


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A man in a blue button-up.
Marc Healy
executive director of retail and marketing

Often greeted by the team as “Mr. HEALY!,” with all suitable pomp, Marc is known to be a positive force of nature in the office. After graduating from Western Washington University with a degree in Business and a concentration in Finance, Marc proceeded to leap right into leadership positions. His career now spans over 35 years, with experience in marketing, sales, and finance.


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