The Balanced Scorecard On How We Evaluate Retail Banks

The following is the scorecard of how we evaluated banks until 2013. From 2014 onwards, we will be adding your feedback in this website into the scorecard. The new considerations based on customer feedback is indicated in yellow in the scorecard below.

(The yellow tags indicate where your feedback on is taken into account)

Dimension Weight Indicators (we look for data pertaining to the retail banking business only)
Value of Franchise:
The brand value that this bank enjoys in its market place.
  • Market share in core retail deposits
  • Growth in core retail deposits
  • Growth number of in retail banking customers
  • Number of respondents in who would recommend the bank to their friends
Financial Performance:
We believe that banks should not just have good customer service but be financially strong.
  • Growth in total revenues
  • Growth in operating profit
  • Total assets
  • Return on assets
We give weightage to a banks’ stability in its own market place by understanding how much of its business is core and recurrent.
  • Net interest margin
  • Portion of income which is recurring
  • Fee income
  • Cost to income ratio
A bank that doesn't have a strategy cannot possibly be expected to compete effectively in its market place. We look for the ability of banks’ own management to describe its strategy to us.
  • Depth of reporting in the Annual Report
  • Clearly conceptualised strategy
  • Quality of the submissions made to our questions
Sales Capability:
A bank's sales capability is based on not just service quality but also on the way in which its staff are incentivised remunerated to look after you, the customer.
  • Cross sell ratio
  • Sustainability of sales staff incentive schemes
  • Market share in mortgages
  • Market share in credit card turnover
  • Number of genuinely new products introduced in the year under review
  • feedback on customer facing staff
  • feedback on sales staff satisfaction at branch
  • feedback on sales staff satisfaction at call center.
Risk Management:
A safe bank is a good bank. We look at the banks’ balance sheet to understand how strictly it manages its loans to customers.
  • 30,60,90 days delinquencies
  • Non performing loans ratio
  • Size of recovery teams as a ratio of the total retail loan book
  • Performance ratios of debt recovery staff
Process, Technology and Efficiency:
The way in which your bank is able to serve you efficiently is based on its backend technology as well as its business process. We also take into account how you as a customer feel about its service.
  • Time to market for a genuinely new product
  • What the bank has in its core banking and customer information systems
  • Turn-around time for mortgage and credit card approvals
  • Customer satisfaction on efficiency of branch level service
  • Customer satisfaction on efficiency of call center service
  • Customer satisfaction on efficiency of ATM service
Penetration and Availability of Distribution Channels:
A good bank is one that is accessible to costumers 24 x7 hours in a day and with the level of convenience and ease of use that costumers have come to expect from any service provider.
  • Proportion of self-service transactions as a % of total transactions
  • First contact resolution as a % of total transactions at the call centre
  • Proportion of active bill payment users in internet banking
  • Proportion of active mobile banking users
  • Number of branches as a % of total branches of all banks in the country
  • Number of ATMs as a % of total ATMs in the country
  • Revenue generated through internet banking
  • customer feedback on branch experience
  • customer feedback on call center experience
  • customer feedback on internet/mobile channel experience
Staff Skills:
We believe that a well-run retail bank should be a combination of highly competent leaders as well as young, more costumer centric staff.
  • Proportion of senior executives with more than 10   years of service in the bank/industry should be healthy but not overwhelming
  • Attrition rates (sales staff)
  • Attrition rates (non-sales staff)
  • feedback on exceptional staff (employee) experience
Ethical Banking:
We encourage banks to publish their commitment to costumers and stick by them.
  • Published ethical services guidelines/ code of conduct
  • Depth of social corporate responsibility
Overall Customer Feedback:
We look at the over rating achieved by this banks in
  • Average rating of this bank in (over customer assessment to be introduced in 2014)


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