A comprehensive summary of the

ESSENTIAL
KPIs OF A Start

DIGITAL BANK
Also useful in "Digital-First Banks"
@evansmunyuki
Written By Evans Munyuki
Award-Winning Chief Digital Officer
www.munyuki.com

Version 2.1 Swipe Left

 I have divided this whitepaper into an

EXECUTIVE
SUMMARY
with the top 9 KPIs
(including the killer KPI)
for those short on time,

a detailed section with "The Vital Dozen KPIs,"

and a comprehensive "Superset of KPIs" for those
seeking maximum value.

It includes case studies of digital banks that are

crushing it, and 5 Strategies for lowering your
Customer Acquisition Costs (CAC).
Evans Munyuki
www.munyuki.com
 The market size of digital
banks worldwide is

SET TO
2,000

1,500

SOAR
1,000

500

0
2021 2030

i
from $47.4 billion in 2021 to $2.05 trillion in 2030 .
There is a growing demand for digital banks,
digital-first banks, and digital banking services.

Tech-savvy customers are pushing up the

adoption rate of digital banking.

Digital banking is a great base

from which to grow your career!
Read these KPIs to know your
career levers!
Evans Munyuki
www.munyuki.com
 A digital bank is a bank which
offers financial products & services

THROUGH
DIGITAL
PLATFORMS
instead of physical branches.

Digital banks can further be described as

neobanks, challenger banks, new banks,
non-banks, or marketplace banks.

Evans Munyuki
www.munyuki.com
 The KPIs that apply to a specific
digital bank vary based on its

BUSINESS
MODEL, GOALS,
& STRATEGY.
So, while general guidance is given here, you need
to select the best KPIs per your business model.

Evans Munyuki
www.munyuki.com
 The Business Model Canvas Outlines It All
and it lays the foundation for us
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments

Key Channels
Resources

Cost Revenue
Structure Streams

Evans Munyuki
www.munyuki.com
 What is a KPI? A KPI or Key
Performance Indicator is a
measurable value that
helps individuals or
organizations to

EVALUATE THE
SUCCESS OF
THE ACTIONS
or projects they undertook to achieve
specific business goals or objectives.

Evans Munyuki
www.munyuki.com
 Using KPIs helps individuals and
organizations to

MEASURE, F CUS,
IMPROVE, AND
COMMUNICATE
PERFORMANCE,
leading to better decision-making and
the achievement of desired outcomes.

Evans Munyuki
www.munyuki.com
 DIGITAL BANKS
DIFFER FROM
TRADITIONAL
BANKS
and they require a very different mindset.

This is important to note as it affects the

KPIs that are prioritized in a digital bank
versus a traditional bank. Let's explore more:

Evans Munyuki
www.munyuki.com
 KPIs are crucial for
digital banks as they
enable the bank to
measure and
monitor their real-
time performance,
leading to data-
driven decisions that
can improve the
bank's operations,
customer experience,
and financial performance.

Since digital banks operate in a highly competitive

environment, KPIs help them identify areas for
improvement, such as increasing operational
efficiency, reducing costs, improving customer
experience, and expanding the bank's customer base.

Moreover, KPIs assist digital banks in

managing challenges related to technology,
innovation, risk management, cybersecurity,
compliance, and other critical areas.
Evans Munyuki
www.munyuki.com
 A Digital Bank Case Study Makes The Point:

These are the top 10 Digital Banks Worldwide,

by Market Capitalization, as of 2022:

Nubank* $45b
Revolut $33b
Chime $25b
WeBank
$21b
Kaokao-Bank
$19b
Robinhood $10b
SoFi
$10b
Tinkoff
$9b
N26 $9b
Note: * - valuation at time of initial public offering (Dec 9, 2021.
Source: Simon-Kucher & Partners, "The Future of Neobanking: How can
K Bank
$7b Neobanks unlock profitable growth?" May 7, 2022
insiderintelligence.com

0 10 20 30 40 50

At the top of the digital bank pack is NuBank,

the largest neobank in the world, with over 70
million customers and a market cap of $45b*.

Evans Munyuki
www.munyuki.com
 In Q3 2022, Nubank generated
revenues of $1.31 billion, and posted net
profits of $7.8 million. Here are 4 telling KPI's
in Nubanks profitable results in that quarter:

(1) Sustained growth in new customers,

(2) Sustained growth in digitally active

users which highlighted the strength of

(3) Nubank’s superior technology offering &

real use of data and personalization, and

(4) high levels of customer satisfaction.

There are more KPIs & I will cover them, but I

want to whet your appetite by highlighting
the difference in Nubank's mindset and
prioritization of important digital bank KPIs.
Evans Munyuki
www.munyuki.com
 What Else Makes Digital Banks Different?

Digital banks operate

entirely online and have
no physical branches or
in-person interactions
with customers. This
places a significant
emphasis on user
experience design,
smart data, artificial
intelligence, and

and process re-imagination.

Digital banks greatly prioritize
technology and innovation, with KPIs
such as website and mobile app
performance, user engagement, and
customer satisfaction.

Evans Munyuki
www.munyuki.com
 They acquire customers
through online
channels like social
media, search engines,
and digital advertising,
and have lower cost
structures than
traditional banks due to
their lack of physical
branches.

Digital banks use customer data to

personalize experiences and make data-
driven decisions. They often partner with
fintechs to broaden the range of financial
products and services, innovate faster,
and gain faster speed-to-market.

Evans Munyuki
www.munyuki.com
 Digital banks require a different
approach to income generation, with
revenue models such as subscription
models and API monetization.

They prioritize customer

experience and changing
customer needs, delivering
products, services, and
experiences entirely
digitally.

Leadership and teams within digital banks

must extract insights from data and
democratize data to unleash innovation as
their survival depends on it. This is in
contrast to traditional banks, which have
data but do not always leverage it to its full
potential.

Evans Munyuki
www.munyuki.com
 They have a
noteworthy embrace
and prioritization of
differentiators like UI &
UX Design, Data & AI-
driven personalization,
Tech Stack, API
sandboxes, Developer
Portals, API economy,
Cloud, Deployment
Methods, and
Algorithms as drivers
of competitive
advantage.

Evans Munyuki
www.munyuki.com
 Speed and Agility:

Digital banks have to be agile & flexible,

not slow and rigid like traditional
banks. They need

to have the ability to

move quickly, to adapt
fast to changing
customer
needs, adapt to new
market trends, and
new market conditions.

They need to launch new products fast, and respond

to changing regulations. That requires a business way
of work, tools and KPIs that foster such speed and
agility.

Evans Munyuki
www.munyuki.com
 Marketplace Banks

A marketplace bank is a
type of digital bank that

offers financial
services and
products from
third-party
providers in
addition to its
own services.

It can also choose to offer non-financial services

and products from third party providers.

Examples:

Evans Munyuki
www.munyuki.com
 Non-Banks

A Non-Bank is an
entity that provides
financial services
but is not regulated
as a bank.
Examples of services by
Non-Banks: streamlined
loans, payment services,
or mortgages.
However, Non-Banks don’t
simultaneously accept deposits or
offer checking and savings accounts.
Some of the nonbanks like Monese
operate on an EMI license.***

Examples:

Evans Munyuki
www.munyuki.com
 Challenger Banks

A challenger bank is a
type of digital bank
that

aims to disrupt
or "challenge"
traditional
banking by
offering
innovative
products,
services, and
experiences.

Examples:

Evans Munyuki
www.munyuki.com
 NeoBanks

A neobank is typically
a pure-play digital bank.
It may or may not hold its own
banking license.

Neobanks typically
have a narrow range
of services, and often
have no branches.

Examples:

Evans Munyuki
www.munyuki.com
 New Banks

A new bank is
a financial institution that is
newly established and has
a digital-first approach.
New banks may have
physical branches or
may offer services
online-only.

New Banks are usually fully

licensed neobanks that provide
a full range of banking services
digitally.

Examples:

Evans Munyuki
www.munyuki.com
 "Challenger banks",
"neobanks", and "new
banks" are terms that are
often used interchangeably
to refer to digital banks that
operate online and offer
innovative financial
products.

While there may be slight differences

in their business models and
strategies, these differences are not
significant enough to require separate
KPI segmentation here.

Evans Munyuki
www.munyuki.com
 A "digital-first bank" is a financial
institution that is fresh built or
reinvents itself to

PRIORITIZE
DIGITAL
as the primary
means of interacting
with customers and
delivering products
and services.

Evans Munyuki
www.munyuki.com
 Digital-first banks

OFTEN DO NOT
HAVE
PHYSICAL
BRANCHES
or they may have a very limited
number of branches unlike traditional banks.

Evans Munyuki
www.munyuki.com
 The Top 9 Essential
KPIs of a Digital
Bank

Straight Feature
Launch & Through Adoption
Load Times Processing
(STP) Rate
Depth (FAD)

Average Time User

to First Abandonment
Engagement
Transaction Rate
(ATFT)
& Active Users
(the killer KPI)

Customer Net Promoter

Turn Around Score (NPS),
Retention
Time (TAT) Sentiment Analysis,
Rate (CRR) & CSAT

Evans Munyuki The applicable KPIs vary depending on a digital

www.munyuki.com bank's business model, goals, & strategy.
 LAUNCH
& LOAD
TIMES
This KPI measures the speed and
efficiency of your digital banking
platform(s) during various hours of the
day, particularly during high-traffic
periods.
Its aim is to minimize the duration between a user
clicking on the app or website and it becoming fully
operational. Customers who engage in online banking
tend to be easily frustrated by slow-loading
platforms, which is why it is crucial to impress them
with digital banking assets that perform exceptionally
well.
Evans Munyuki
www.munyuki.com
 Web analytics tools: These tools track
user behavior on the website or app,
including the time it takes for pages to
load.

Performance testing: Digital banks can

use performance testing tools to
simulate user traffic and measure the
website or app's response time under
different conditions.

Real user monitoring: This technique

involves tracking actual user behavior
and measuring the time it takes for
pages to load in real-time.

Third-party monitoring services: Digital

banks can contract with third-party
services that specialize in monitoring
website and app performance and
providing detailed reports and analysis.
Evans Munyuki
www.munyuki.com
 STRAIGHT
THROUGH
PROCESSING
(STP) RATE

Evans Munyuki
www.munyuki.com
 Straight Through
Processing is a measure of
how well a process flows
from start to finish without
manual intervention.
It is an important indicator of operational efficiency
and customer satisfaction for digital banks.

The Straight Through Processing Rate (STP

Rate) is a key performance indicator that digital
banks can use to measure STP, which is

the percentage of transactions that are

processed without the need for manual
intervention.
A higher STP rate indicates greater efficiency and
lower costs. An example of a manual intervention
is when a human needs to read and manually
approve a bank account application, which is not
100% STP.
Evans Munyuki
www.munyuki.com
 Example:

Let's say that a digital bank processes 10,000

transactions in a month, and out of those,
8,500 are processed without any manual
intervention. To calculate the STP Rate for this
digital bank, you would use the following
formula:

STP
Rate
= ( Total number of transactions) )
# of transactions processed without manual intervention x 100

STP Rate = (8,500 / 10,000) x 100

STP Rate = 85%

So, in this example, the STP Rate for this

digital bank is 85%. This means that 85% of
their transactions are processed without
any manual intervention. A higher STP rate
indicates greater efficiency and lower costs.
Evans Munyuki
www.munyuki.com
 FEATURE
ADOPTION
DEPTH (FAD)
Evans Munyuki
www.munyuki.com
 The Feature Adoption
Depth (FAD) KPI is a way to
see how often customers
are using certain features
available through the bank's
website or mobile app.

It helps the bank to figure out

which features are most
popular and useful for their
customers,

and which features need more

work to get people to use them.
Evans Munyuki
www.munyuki.com
 For example, let's say a digital bank
recently launched a new feature that
enables customers to transfer funds
between accounts.
To measure the FAD for this feature, the bank could
track the percentage of customers who have activated
and used this feature over a specified period of time.

Let's say a bank has 10,000 active customers, and

2,000 of them have used the transfer funds
feature at least once.

FAD = ( Total number of active customers) )

# of customers who have used the transfer funds feature x 100

FAD = (2,000 / 10,000) x 100

FAD = 20%

If the FAD is high, it indicates that a large

number of customers have adopted the
feature and are actively using it, which could
suggest that it is a valuable and successful
addition to the bank's offering.
Evans Munyuki
www.munyuki.com
 However, if the FAD is low,
it may indicate that the
feature is not well-
understood or is not
meeting customers'
needs,
and the bank may need to
take action to increase its
usage, such as:
promoting it through targeted
marketing,
offering additional incentives to
customers who use it,
redesigning the ease of use and
customer experience of the feature,
relooking at the value the feature
provides, or.
redeveloping the feature.
Evans Munyuki
www.munyuki.com
 The
Killer
KPI!

AVERAGE
TIME TO FIRST
TRANSACTION
Evans Munyuki
www.munyuki.com
 The Average Time to First
Transaction (ATFT) KPI measures
the length of time
between when a customer
signs up for a digital bank
and when they make their
first transaction.
It can be how long it takes, or how
many sessions it takes.
The goal of this KPI is to reduce the
time (or number of sessions) it takes
for customers to start using the
digital bank's services, which can lead
to increased engagement and retention.

Evans Munyuki
www.munyuki.com
 This is a crucial KPI for a digital
bank because it forces a digital bank
to focus on providing a seamless,
simple and user-friendly onboarding
experience that engages, guides, and
nudges customers to easily start and
successfully finish their first
transaction fast!
By measuring the ATFT, digital banks
can identify potential bottlenecks in
their onboarding AND transacting
processes, and take actions to
improve customer experience, refine the
user interface, improve straight through
processing, make it easy to use, and
increase engagement.
Evans Munyuki
www.munyuki.com
Additionally, this KPI incentivizes banks to
create targeted marketing campaigns that
encourage new users to start Transacting.
The Average Time to First Transaction (ATFT)
KPI is golden because it requires excellence,
simplicity, & seamlessness in core digital-
bank customer-self-serve tasks: ie
download , install , register , open a
bank account , KYC , deposit money
into the account , and transact .

ATFT is the killer KPI because it also requires excellence

which touches other important KPIs such as:
abandonment rate, converstion rate, straight-through-
processing, key functionality for self-service, active users,
launch and load times, task completion, and more. In
other words, you cannot get ATFT right if you don't also
get these other KPIs right.

Giving the customer a delightful experience in all these steps and

critical areas of his/her relationship with the bank already earns
you the bulk of your 5 Star Rating!
Evans Munyuki
www.munyuki.com
To calculate the
Average Time to First
Transaction (ATFT),
determine the time
it takes for new
customers to make
their first transaction
after registering on
the digital bank,

then add up these times and divide by the number of new

customers. This provides the average time to first transaction.

Total time taken to complete

first transactions for all new customers
ATFT =
Number of new customers

For additional insights, you can segment this data

by user attributes like age, gender, or device type.

Evans Munyuki
www.munyuki.com
Revolut, Monzo and Starling are case
studies of Digital Banks and FinTech apps
whose onboarding flows were designed to
prompt and guide users to make their
initial transaction very quickly.

Their success in achieving this KPI alone is

one of the major reasons why they each
achieved a rapid rise in popularity and
success.

As a proof-point of this KPI (and others),

Revolut has over 16 million customers!
Starling Bank has over 2 million
personal customers and over 45,000
business customers, and
Monzo has over 5 million customers.

Evans Munyuki
www.munyuki.com
 Revolut earned
a 5-star rating
on the "11:FS
Pulse" digital
platform for its
onboarding
process.

It received 5
stars for its
usability, 5
stars for its
utility, and 5
out of 5 stars
for visual
design!

All this plays well

to the ATFT KPI.

Evans Munyuki
www.munyuki.com
11:FS Pulse showcases the top-rated user
journeys of digital banks & fintechs.
As a builder of digital
banks, over the years, I
have found 11:FS Pulse to
be an essential resource for
building great experiences.
It allows people to learn
from the best-in-class user
journeys and to see them
live in action without the
need to open bank
accounts with hundreds of
digital banks in tens of
countries (an impossible
task).

If you would like to

get preferential pricing
for a brand new account
on 11:FS Pulse, contact me
on LinkedIn
@evansmunyuki - I can
help you with a referral.
Evans Munyuki
www.munyuki.com
Besides Revolut, I
also found other
great customer
journeys on 11:FS
Pulse which are
highly rated.

The onboarding
processes of the
companies are so
good, enabling a
good ATFT.

Some of the valuable

top companies that
are worth checking
out on 11:FS Pulse
where you can see
the full user
journeys include:
Snoop, Nude, Monzo,
Kraken, Chip, and
Sezzle.

Evans Munyuki
www.munyuki.com
Monzo
Monzo is still the
best challenger bank
out there with a very
good onboarding
experience and
setting up of joint
accounts.

They made great

BNPL and ‘pot’
enhancements and
continued to
improve their UX.

Check out their

onboarding user
journey by opening an
account, or viewing
their user journey on
11:FS Pulse. 5 Stars
for usability, utility,
and visual design.

Evans Munyuki
www.munyuki.com
Nude
Best in class
onboarding
Easy
Stylish
Video Carousel
Easy KYC process
Fun graphics
User-friendly
interface

11:FS Pulse Rating: 5/5

Usability 5/5
Utility 5/5
Visual Design 5/5

Check out their

onboarding user
journey by opening an
account, or viewing
their user journey on
11:FS Pulse.

Evans Munyuki
www.munyuki.com
Kraken
Onboarding in a few
minutes
Guides users
through verification
Colorful graphics
One question per
page onboarding
process
Delightful
confirmation screen
Verification
completed within a
minute

11:FS Pulse Rating: 5/5

Usability 5/5
Utility 5/5
Visual Design 5/5

Check out their

onboarding user
journey by opening an
account, or viewing
their user journey on
11:FS Pulse.

Evans Munyuki
www.munyuki.com
Chip
Smooth Onboarding
Guides users through
a simple KYC process
One question per
page onboarding
process
Vibrant unique
graphics
Fresh, modern feel
Guides users through
quick informed
decisions

11:FS Pulse Rating: 4.6/5

Usability 5/5
Utility 4/5
Visual Design 5/5

Check out their

onboarding user journey
by opening an account,
or viewing their user
journey on 11:FS Pulse.

Evans Munyuki
www.munyuki.com
 Sezzle has achieved a significant
milestone as the first dedicated Buy Now
Pay Later (BNPL) service to generate a
profit!
Their payment section is
user-friendly and so easy
to navigate, making for a
seamless shopping
experience.

However, what truly

sets Sezzle apart is
their unique feature
that allows users to
improve their credit
scores while using the
platform.

This function is
particularly
noteworthy and helps
distinguish Sezzle from
other BNPL services.

Experience their user

journey out on 11:FS
Pulse or open an account
with them.
Evans Munyuki
www.munyuki.com
 USER
ENGAGE-
MENT
This KPI measures how actively
customers are interacting with a
digital bank's platform, and how
satisfied they are.
High levels of user engagement can lead to
improved satisfaction, loyalty, and revenue.

Evans Munyuki
www.munyuki.com
 Several metrics are used to measure
user engagement in a digital bank:
1. Monthly Active Users (MAU),
2. Daily Active Users (DAU),
3. Time spent on the app (or site) - the amount
of time customers spend on the digital
bank's mobile application. It helps to
understand how engaged users are with the
platform.
4. Frequency of transactions - the number of
transactions conducted by a customer
within a specific time period.
5. Conversion Rate - This KPI measures the
percentage of users who complete a desired
action, such as opening an account, applying
for a loan, or making a transaction. It
provides insight into how effective the digital
platform is in converting users into
customers.
6. Net Promoter Score (NPS)
7. Pages Per Session - This KPI measures the
number of pages users view per session on
the bank's digital platform. It provides
insight into how engaged users are with the
content on the platform.
Evans Munyuki
www.munyuki.com
 ACTIVE
USERS

Daily Active Users (DAU)

Weekly Active Users (WAU)
Monthly Active Users (MAU)

Evans Munyuki
www.munyuki.com
 The Active Users KPI measures
the number of customers who
have used a bank's app at least
once within a specific time
period, such as a daily, weekly, or
monthly.
A potential benchmark for this KPI is to aim for at
least 50% of app installs to result in active users.
The Monthly Active Users (MAU) KPI
measures the number of unique users
who engage with the bank's digital
platform at least once in a given month.
MAU = Number of unique users who engaged with the
digital bank's platform or services at least once during a
given month

For example, if a digital bank has 250,000

customers, and 100,000 unique users use the
bank's app in a month, the MAU is 100,000.

The goal is to get month-on-month growth.

Evans Munyuki
www.munyuki.com
 ABANDONMENT
RATE

This KPI measures the percentage of

users who begin a process or flow on the
bank's site or app but do not complete it.

Evans Munyuki
www.munyuki.com
 High Abandonment Rates can
indicate issues with the customer
journey or problems with the
digital bank's user experience,
marketing, or customer acquisition
strategies.
Allowing customers to complete a
transaction in as few steps as possible
can help reduce the abandonment rate and
increase conversion.

By tracking Abandonment Rates, digital

banks can identify where customers
are dropping off and make
improvements to optimize the
customer journey and drive higher
conversion rates.
Evans Munyuki
www.munyuki.com
 To calculate the Abandonment Rate,
digital banks typically track the number
of users who initiate a flow or process,
such as starting a loan application, or
starting a credit card application, and
compare it to the number of users who
complete the flow or process.

The Abandonment Rate is then

calculated as the percentage of users
who started the flow but did not
complete it.

Benchmarks vary depending on several factors,

such as the type of process being measured, the
specific industry, and the size of the business, but
ideally, no more than 20 to 40% of users should
abandon a particular flow or process before
completing the desired action.
Evans Munyuki
www.munyuki.com
 CUSTOMER
RETENTION
RATE (CRR)
Evans Munyuki
www.munyuki.com
 The Customer Retention Rate
KPI measures the percentage of
users who continue to use the
bank's digital platform over
time.
It shows how well the bank is able to
keep its existing customers while
avoiding losing them to competitors.
To calculate the customer retention rate, you need to first
define a time period and a cohort of users. For example, you
could measure the user retention rate of a digital bank over a
90-day period and a 30-day period for users who signed up in
January.

Let's say that in January, 1,000 customers signed

up for the digital bank via app. After 30 days, 700
of those users were still using the app.

( )
Customer
# of users at the end of the period x 100
Retention =
# of users at the beginning of the period
Rate

Customer Retention Rate after 30 days = (700 / 1000) x 100 = 70%

The 30-Day Customer Retention Rate was 70%.

Evans Munyuki
www.munyuki.com
 TU RN A RO U ND
TIM E (TA T)

This KPI measures the time it takes for

the digital bank to respond to customer
requests or inquiries, such as support
tickets or customer service requests.

The goal of this KPI is to ensure that customers

receive a timely response to their inquiries, which
can lead to higher customer satisfaction and
retention.

Evans Munyuki
www.munyuki.com
 For example, a digital bank may set a
goal to respond to all customer
inquiries within 24 hours of receiving
them.

They can then track their progress

towards this goal over time, and make
adjustments to their customer support
processes as needed to improve
turnaround time.

By providing timely and effective customer

support, a digital bank can build trust and
loyalty with its customers.

This, in turn, can lead to increased

customer retention and a positive
reputation in the market.

Evans Munyuki
www.munyuki.com
 Another example:

Turnaround Time KPI: Time to Complete

the Account Opening Process

This KPI measures the time it takes for

the digital bank to complete the
account opening process from the time
the customer submits an application
until the account is fully activated and
ready to use.

KPI goal: Ensure that customers can

start using their accounts as soon as
possible, which can lead to higher
customer satisfaction and fewer
abandoned applications.

Evans Munyuki
www.munyuki.com
By providing a fast and
efficient account
opening process,

a digital bank can offer

a positive customer
experience and gain
a competitive edge in
the market.

This KPI is particularly important for

digital banks, where customers expect a
fast and convenient processes with
instant gratification.

"Turnaround time" measures the time

it takes to complete the process from
the customer's perspective.

Evans Munyuki
www.munyuki.com
 It includes any time the customer
spends waiting for their request to be
fulfilled, such as the time it takes for a
support ticket to be resolved. Or the
delays that are created when a
request goes back and forth between
one bank department and the other.

TAT focuses on the overall customer

experience and how quickly the
customer's needs can be met.

I have spent quite a bit of time on TAT

here because it is a very important KPI.

Evans Munyuki
www.munyuki.com
 Net Promoter Score (NPS)
The Net Promoter Score KPI measures
customer satisfaction and loyalty. It is a
widely used metric to understand how
likely customers are to recommend the
bank to others.
The NPS is calculated by
asking customers to rate how
likely they are to recommend
the bank to others on a scale
of 0 to 10, with 0 being "not at
all likely" and 10 being
"extremely likely."

Example:
“On a scale from 0-10, with zero being "not at all
likely" and ten being extremely likely," how likely
are you to recommend our digital banking
services?”

Based on their responses, customers are then

classified into three groups:
Evans Munyuki
www.munyuki.com
 (0-6) (7-8) (9-10)
Detractors Passives Promoters

To calculate the NPS for a digital bank, the

percentage of detractors is subtracted
from the percentage of promoters.

NPS = % of Promoters - % of Detractors

The Net Promoter Score ranges from -100 to

100, with higher scores indicating better
customer perception of the digital bank.

An NPS score above 0 is good, above 20

is great, and above 50 is excellent. A
score below 0 is a cause for concern.
Tracking the NPS helps digital banks
identify areas for improving customer
experience and satisfaction.
Evans Munyuki
www.munyuki.com
 Sentiment Analysis
The sentiment analysis
KPI measures
customers'
sentiments or
emotions in their
feedback or
communication with
or about a business.
Digital banks use natural language
processing (NLP) tools to analyze
customer feedback and categorize it into positive,
negative, or neutral sentiment categories on a scale
of 0-100. For example: what are your customers
saying about you on social media and in reviews?

This KPI helps digital banks track changes in

customer sentiment, identify areas for
improvement, and improve the overall customer
experience.
Evans Munyuki
www.munyuki.com
 Sprinklr is a social media management
platform that provides businesses,
including digital banks, with a suite of tools
to manage their social media presence,
including content publishing, social
listening, customer care, and analytics.

Sprinklr uses natural language processing (NLP) to analyze

customer feedback on various online channels to
understand customer sentiment and measure the
sentiment analysis KPI. Its sentiment analysis tool can
categorize customer feedback into positive, negative, or
neutral sentiment categories and help digital banks track
changes in sentiment over time.

The platform provides visual dashboards and reports to

help digital banks analyze sentiment trends and take data-
driven actions to improve customer experience, which can
ultimately lead to improved customer satisfaction and
loyalty. You can check them out at sprinklr.com.

Evans Munyuki
www.munyuki.com
 CSAT - CUSTOMER
SATISFACTION
CSAT (Customer Satisfaction Score) is a
KPI used by digital banks to measure
how satisfied customers are with
their products, services, and overall
experience.
The CSAT KPI is typically measured through customer
surveys, which can be sent out after specific
transactions or interactions with the bank, or on a
regular basis. Both are recommended.

In transactional customer satisfaction, you ask

a question after a customer contacts support.
In experience or product satisfaction, you ask
on a regular basis (eg once a quarter).

Example:
“On a scale from 1-10, with one being least satisfied
and ten being very satisfied, how satisfied are you
with our digital banking services?”
Evans Munyuki
www.munyuki.com
 Digital makes
it very easy to
collect this
customer
feedback in
real time.

Higher customer
satisfaction indicates a
more user-friendly and
efficient process and
digital bank.

Digital banks can measure customer

satisfaction using the following KPIs: Net
Promoter Score, Customer Complaints,
Customer Surveys, Customer Reviews,
Customer Support Metrics, and User Activity
Metrics.
Evans Munyuki
www.munyuki.com
 Evans Munyuki
www.munyuki.com

This is the end of the "Executive Summary."

But, if you want to get the most out of this,

LET'S DIVE
DEEPER!
I have more context, case
studies, "the Vital Dozen KPIs,"
and the "Superset" of KPIs to
help you

crush it in
digital banking!
"The Vital Dozen" Essential KPIs of a
Digital Bank

App
Customer Customer
Downloads
Acquisition Churn Rate
Installs, &
Cost (CAC) (CCR)
Ratings

Growth In Digital Sales Conversion

New Users Growth Rate Rate & Time

Non-Interest
Average Customer
Income (NII) &
Revenue Per Lifetime Value
Net Interest
User (ARPU) (CLV)
Margin (NIM)

Chat & Call

Tech
Center Cybersecurity
Scalability &
Volumes, & Compliance
Error Rate
& Complaints

Evans Munyuki The applicable KPIs vary depending on a digital

www.munyuki.com bank's business model, goals, & strategy.
 App Downloads
The App Downloads KPI
measures the total
number of times the app
has been downloaded from the app
store.
It is a useful metric for measuring the reach,
popularity of, and level of interest in the digital
bank app.
App Downloads KPI = Total # of app downloads in a given time period

To gauge a digital bank's success, this KPI should

be used with other KPIs like the number of active
users, retention rate, and customer engagement.

In general, a good benchmark for app

downloads is at least 100,000 downloads within
the first year of release, depending on the
addressable marketsize.

Evans Munyuki
www.munyuki.com
 APP INSTALLS
The App Installs KPI
measures the number of
times the digital bank's
mobile app has been
installed on a device.
A good approach for this KPI is to track the
percentage of downloads that result in
actual installs.

A reasonable benchmark for this metric

is to aim for at least a 70% install rate.
For example, if the digital bank has
100,000 app downloads, it should aim
for at least 70,000 app installs.

Evans Munyuki
www.munyuki.com
 APP RATINGS
AND REVIEWS

Evans Munyuki
www.munyuki.com
 The App Ratings and Reviews tell you
how satisfied customers are with your
mobile app.

This is the voice of the customer and you must

read and understand the ratings and reviews
customers leave on the App Store, Play Store, and
elsewhere online.

If customers are unhappy, have issues, challenges

or complaints, understand their pain, and fix the
problems.

Benchmark: aim for an average rating of at

least 4 out of 5 stars and a very high
percentage of positive reviews. For
example, a digital bank should aim for at
least 80% of its app Swipe
store
Leftreviews to be

positive (4 or 5 stars).
Evans Munyuki
www.munyuki.com
 Banks With Interesting App Store Ratings

Data extracted as of Feb 18th, 2023

APP STORE
BANK # OF VOTES
RATING

Wells Fargo Mobile 7.7 Million

Bank of America 4.1 Million

Discover 3.9 Million

Chime 580 K

Al Rajhi Bank 303 K

SoFi 219 K

Revolut 33 K

Nubank 9.9 K

Tinkoff 4.6 K

Evans Munyuki
www.munyuki.com
 CUSTOMER
ACQUISITION
COST (CAC)

Evans Munyuki
www.munyuki.com
 The Customer Acquisition
Cost (CAC) KPI measures
the cost of acquiring a new
customer.
Total Sales and Marketing Costs
CAC =
Number of New Customers Acquired

For example, if a digital bank spends $100,000 on marketing

and sales in a month and acquires 10,000 new customers,
its CAC is $100,000 / 10,000 = $10 per customer.

The CAC metric is important for

digital banks because it helps to
determine the efficiency of
customer acquisition strategies.
A low CAC is generally desirable as it can improve
profitability and overall financial performance. As
costs reduce, just make sure you are continuing to
attract higher quality customers.
Evans Munyuki
www.munyuki.com
What Are Some Strategies For
Lowering Your Bank's CAC?
A digital bank can lower its customer acquisition cost
(CAC) by implementing several strategies that focus
on improving its marketing efficiency and increasing
customer engagement.
Here are some effective ways that you
can use to lower your bank's CAC:

ImprovingUser
Improving UserExperience:
Experience:
I am a lover of Seth Godin's
book, "Purple Cow." Aim to
create a purple cow! i.e.
Creating a remarkable
product with a remarkable user
experience is the first priority!

Make sure your website and mobile app have an

intuitive user interface and offer a seamless experience
to users. This can help increase user engagement and
retention, leading to lower customer acquisition costs
in the long run.
Evans Munyuki
www.munyuki.com
 Referral Marketing
marketing:
We have seen this strategy being used
very effectively by Revolut and others.
Encourage your existing customers to
refer friends and family to your digital
bank.

This can be done through a referral program

that rewards both the referrer and the new
customer with incentives such as cashback, free
transactions, or other perks.

SEO and Content Marketing:

Optimize your website for search
engines, and create high-quality
content that provides value to
potential customers. Some banks even
provide financial education content.

This helps attract and retain customers who

are interested in your bank's offerings, and you
can route them to your app as appropriate.
Evans Munyuki
www.munyuki.com
 Social Media Advertising:

Social media advertising: Utilize social

media advertising platforms like
Facebook and Instagram to target
potential customers who fit your ideal
customer profile.

This can help you reach a large audience at a

lower cost compared to traditional advertising
channels.

Partnering With Influencers:

with influencers:
Collaborating with influencers or
micro-influencers in your target market
is a good idea which brings value.

This can help your bank reach a wider audience

and build trust with potential customers.

Evans Munyuki
www.munyuki.com
 CUSTOMER
CHURN
RATE (CCR)
Evans Munyuki
www.munyuki.com
 The Customer Churn Rate KPI
measures the rate at which
customers are closing their accounts
or stopping the use of the bank's
services.
It is an essential KPI for digital banks as it
provides insights into customer satisfaction and
loyalty, and helps the bank identify areas for
improvement in its services and customer support.

The churn rate KPI for a digital bank can be calculated

by dividing the number of customers who closed their
accounts or stopped using the bank's services during a
specific period of time by the total number of
customers at the beginning of the period.

For example, if a digital bank has 100,000 active

customers at the beginning of the year and 5,000 of
those customers close their accounts or stop using the
bank's services by year end,

Customer Churn Rate = (5,000 / 100,000) x 100% = 5%

Evans Munyuki
www.munyuki.com
 GROWTH IN
NEW USERS
The growth in
new users KPI
is a measure of
how successful
the bank is at
attracting and
acquiring new This KPI is critical for digital
customers over banks, as their success
largely depends on their
a certain ability to grow their
period of time. customer base.

There are several ways to measure the growth in new

users KPI for a digital bank, including:

Evans Munyuki
www.munyuki.com
 Total # of new customer accounts:
This is the most straightforward way to
measure the growth in new users KPI.
It simply involves counting the total number of new
customer accounts opened during a specific period.

Net new users:

This is calculated by subtracting the number
of customers who closed their accounts
during a specific period from the number of
new customer accounts opened during that
same period.
Monthly active users (MAUs): I have already covered
this one.
Customer Acquisition Cost (CAC): I have also already
covered this one.

To track the growth in new users KPI, digital banks

should regularly monitor these metrics and set
targets for growth. They should also analyze their
marketing and advertising efforts to determine which
channels are most effective at attracting new
customers and adjust their strategies accordingly.
Evans Munyuki
www.munyuki.com
 DIGITAL SALES
GROWTH
The digital sales growth
rate KPI measures the rate
at which digital channels contribute
to the bank's overall sales growth.
This KPI tracks the growth of sales originating
from digital channels such as online banking,
mobile banking, and other digital platforms.
(Digital Sales = (Current Digital Sales - Previous Period Digital Sales) x 100
Growth Rate
Previous Period Digital Sales

For example, suppose a digital bank had $1 million in

digital sales last year, and this year they had $1.5
million in digital sales. Their digital sales growth rate
is: (1.5M - 1M) / 1M x 100 = 50%

Evans Munyuki
www.munyuki.com
 CONVERSION
RATE

Evans Munyuki
www.munyuki.com
 The Conversion Rate KPI measures
the percentage of users who take a
desired action, such as opening a
new account, applying for a loan
after being presented with an offer,
or completing the sign-up process
from beginning to end.

An example of a conversion rate KPI for a

digital bank could be the percentage of users
who open a new account after visiting the
bank's website or app.

Eg, if 1,000 users visit the bank's

website and 100 of them open a new
account, the conversion rate is 10%.

Evans Munyuki
www.munyuki.com
 The Conversion
Rate KPI helps
the bank
evaluate the
effectiveness of
its marketing
and user
experience
strategies in
driving new
account
openings and
identifying
areas for
improvement.

Evans Munyuki
www.munyuki.com
 ve rsion
Con
Tim e
The Conversion Time KPI measures the
amount of time it takes for a customer
to convert from being a prospect to
becoming an actual customer.

By tracking Conversion Time, digital banks can identify

where customers are dropping off in the conversion
funnel. They can then make improvements to optimize
the customer journey, improve the customer
experience, remove manual drop-off points, and drive
faster conversions.

Evans Munyuki
www.munyuki.com
 AVERAGE
REVENUE PER
USER (ARPU).
The Average Revenue Per User
(ARPU) KPI measures the amount of
revenue generated per user on
average.

Total Revenue
ARPU =
Number of Active Users

For example, if a bank generates $10

million in revenue and has 500,000
active users, the ARPU is $20.

Evans Munyuki
www.munyuki.com
 NON-INTEREST
INCOME (NII)
Evans Munyuki
www.munyuki.com
The Non-Interest
Income (NII) KPI
measures the total
income generated
by a bank that is not
related to interest income.

It is important to note that digital banks have

various non-traditional revenue streams that
contribute to their non-interest income.
Hence, the mindset for running digital banks
is different from traditional banks even for
revenue flows.

Examples of revenue streams you can

expect to see in a digital bank's NII
include the following:

Evans Munyuki
www.munyuki.com
 API Monetization: Digital banks and
financial institutions offer APIs (Application
Programming Interfaces) to third-party
developers, allowing them to access their
banking infrastructure and services.
These APIs can be monetized in various
ways, such as charging a fee for access,
taking a percentage of revenue generated
by the third-party application, or charging
for premium features.

Fees for additional services: Many digital

banks offer premium services for a fee, such
as expedited account opening, premium
customer service, or additional security
features.

Evans Munyuki
www.munyuki.com
 Interchange fees: Digital banks can earn
revenue from interchange fees, which are
paid by merchants to banks for processing
transactions made with debit or credit
cards.
Foreign exchange fees:
Digital banks can earn
revenue from foreign
exchange fees, which are
charged for transactions made
in foreign currencies.
Asset management fees: Some digital
banks offer investment products, such as
mutual funds or exchange-traded funds
(ETFs), and earn fees based on the assets
under management.

Evans Munyuki
www.munyuki.com
Marketplace And Ecosystem Revenue Streams
Marketplace and ecosystem revenue streams
are an important part of the non-interest
income of many digital banks. These revenue
streams typically involve offering a
marketplace of third-party products or
services within the digital bank's platform.
Here are a few examples:

Commission or referral fees:

Digital banks can earn commission or
referral fees by offering third-party
products or services within their platform.
For example, a digital bank might offer
credit cards or loans from other financial
institutions, and earn a commission on any
sales generated.

Evans Munyuki
www.munyuki.com
 Advertising revenue:
Digital banks can earn
advertising revenue
by displaying ads for
third-party products
or services within
their platform.
For example, a digital bank might display
targeted ads for investment or insurance products.

Subscription or membership fees: Digital

banks can earn subscription or
membership fees by offering premium
access to their platform or services.
For example, a digital bank might offer a premium
membership tier that includes additional financial planning
tools or access to exclusive offers.

Evans Munyuki
www.munyuki.com
 Transaction fees: Digital banks can
earn transaction fees by facilitating
transactions within their platform.

For example, a digital bank might allow customers

to purchase goods or services from third-party
merchants within their platform, and earn a fee on
any transactions processed.

Data monetization: Digital banks can

monetize customer data by selling
insights or analytics to third-party
companies.

For example, a digital bank might sell anonymized

data on customer spending patterns or financial
behavior to market research firms.

Evans Munyuki
www.munyuki.com
 Digital Banks may use a
variety of KPIs to measure
Non-Interest Income,
depending on their specific
business model and fee
structure.

Is Non-Interest Income the same thing

as Fee Income in a digital bank?

Not necessarily. While fee income is a

type of non-interest income, not all non-
interest income is fee income.

While fee income is a type of non-interest

income, a digital bank may generate non-
interest income from other sources as well,
such as income from investment banking or
insurance.
Evans Munyuki
www.munyuki.com
 NET INTEREST
MARGIN (NIM)
Evans Munyuki
www.munyuki.com
 Net Interest Margin (NIM) measures
the difference between interest
paid and interest received, adjusted
for the total amount of interest-
generating assets held by the bank.

Digital banks do use the net interest margin

(NIM) KPI, which is a common metric used by
all banks to measure their profitability.

Net interest margin is the difference

between the interest income earned by a
bank on its loans and investments and the
interest expense paid by the bank to
depositors on its deposits and other
borrowings.
Evans Munyuki
www.munyuki.com
Digital banks, like traditional banks,
generate revenue primarily from
the interest earned on loans and
investments.
However, digital banks often have lower
operating costs than traditional banks due
to their online-only business model, which
allows them to offer competitive interest
rates and lower fees to customers.

For digital banks, which typically have a lower

cost structure compared to traditional brick-
and-mortar banks, NIM can be a particularly
important metric because profitability-seeking
digital banks rely heavily on interest income
from their loan portfolio to generate revenue.
Evans Munyuki
www.munyuki.com
 Digital banks may also use other
KPIs, such as cost-to-income
ratio (CIR), return on equity
(ROE), and customer acquisition
cost (CAC), to measure their
financial performance and
growth.

However, NIM remains a fundamental and

widely used KPI in the banking industry,
including for digital banks.

Evans Munyuki
www.munyuki.com
 CUSTOMER
LIFETIME
VALUE (CLV)

Evans Munyuki
www.munyuki.com
 Customer Lifetime Value (CLV) KPI is
used in digital banks and traditional
banks to

estimate the total amount of revenue

a bank can expect to earn from a
single customer over the course of
their relationship with the bank.

It is an important KPI because it allows digital

banks to determine how much they should
invest in acquiring new customers and retaining
existing ones.

Evans Munyuki
www.munyuki.com
 CLV is calculated by estimating the
total revenue that a customer will
generate for the bank over their entire
lifetime, and then subtracting the cost
of acquiring and serving that
customer.

This gives the bank an estimate of the

net revenue it can expect to earn from
that customer over the long term.

Evans Munyuki
www.munyuki.com
 For example, let's say a digital bank
estimates that a new customer will
generate $10,000 in revenue over the
course of their lifetime with the bank.

The bank also estimates that it will

cost $2,000 to acquire and serve that
customer over the same period.

This means that the customer's estimated CLV

is $8,000 ($10,000 - $2,000).

Evans Munyuki
www.munyuki.com
 Digital banks can use CLV to make strategic
decisions about customer acquisition and
retention. For example, if a bank
determines that its CLV is higher for
customers who open multiple accounts or
use multiple products, it may invest more
in cross-selling and upselling to existing
customers.

Conversely, if a bank determines that its

CLV is lower for customers who have a high
likelihood of churning or using only a single
product, it may invest more in customer
acquisition to attract a larger pool of
potential long-term customers.

Evans Munyuki
www.munyuki.com
 Customer Complaints
The Customer Complaints KPI measures
the number of complaints that customers
have made about the bank's products or
services.

This helps the bank identify issues that are affecting

customers and to take action to address those
issues.

One way to measure this KPI is to track the

number of complaints per 1,000 customers.
This allows the bank to compare complaint
levels over time, as well as to benchmark
itself against other banks.

Customer Number of complaints x 1000

=
Complaints KPI Number of customers
2nd way: Calculate a ratio eg (# of complaints/# of customers) x
100. Just be consistent with the formula you choose.
Evans Munyuki
www.munyuki.com
 Chat & Call
Center
Volumes
The chat and call
center volumes KPI
measures the number
of customer service inquiries
and requests that are handled by the
digital bank's chat and call center channels.
I really believe that it is important for digital banks to
consider having a call center or human chat facility
even if it is a fallback from a chatbot experience.
That's because it provides customers with the option
to speak with a real person when they have questions
or concerns or when technology fails to understand
their needs, language or accents. This sometimes
happens with chatbots and voice assistants.

This allows for personalized customer service and can

help build customer loyalty and trust. It is especially
important for high value clients.
Evans Munyuki
www.munyuki.com
 The benefits of tracking the Chat & Call Center
Channels KPI include:

Monitoring customer service performance: It allows

digital banks to monitor the performance of their
customer service team and ensure that customer
inquiries are being handled efficiently and effectively.

Identifying areas for improvement: By analyzing the

chat and call center volumes KPI, digital banks can
identify areas where they may need to improve their
customer service processes, such as hiring additional
staff or introducing new chatbot technologies, or
fixing the underlying issue which is causing
customers to phone or chat with the bank to start
with! This should be top goal!

Enhancing customer satisfaction: By providing timely

and effective customer service through digital
channels, digital banks can improve customer
satisfaction and retention rates.

However, digital banks may still prioritize digital

channels and self-service options as they are more
cost-effective and scalable. Ultimately, the decision to
have a call center or human chat facility will depend
on the bank's target audience, customer preferences,
and business goals.
Evans Munyuki
www.munyuki.com
 ELASTIC LOAD BALANCER

AUTO SCALING GROUP

TECH
SC ALABILITY
Evans Munyuki
www.munyuki.com
System Response Time

This measures the time taken

by a system to respond to a
request made by a user or
application. For
digital banks, it is
important to ensure that
their systems respond quickly
to customer requests and
transactions, as delays can lead
to customer dissatisfaction and
loss of business.

Digital banks should aim to keep their system

response time under a certain threshold to ensure an
optimal user experience.
Evans Munyuki
www.munyuki.com
Infrastructure Capacity

This measures the

capacity of the
infrastructure that
supports a digital
bank's operations,
such as servers, databases,
and network bandwidth.

Digital banks should regularly monitor their

infrastructure capacity to ensure that it can
automatically handle increasing volumes of
users, transactions, and data. They should
aim to keep their infrastructure capacity at a
level that can support current operations as
well as future growth.
Evans Munyuki
www.munyuki.com
Concurrent
Users

This measures the number of users that

can access a digital bank's systems
simultaneously without impacting system
performance or response time.

Digital banks should monitor the number of

concurrent users during peak periods, such as
weekends and holidays, and ensure that their
systems can handle the expected load. They
should also plan for future growth and ensure
that their systems can dynamically handle an
increasing number of concurrent users.

Evans Munyuki
www.munyuki.com
 ERROR RATE
This KPI measures the percentage of
transactions that require manual
intervention due to errors.

Evans Munyuki
www.munyuki.com
 A lower error rate indicates a
more reliable and accurate process.

One example of an error rate KPI for a digital

bank could be the percentage of failed
transactions or errors in processing
transactions. This could include errors in
transferring funds, errors in bill payments, or
errors in processing account information.

To calculate this KPI, the digital bank

would track the total number of
transactions processed during a
specific period (such as a day, week, or
month),
Evans Munyuki
www.munyuki.com
 and compare it to the number of
transactions that resulted in errors or
failures.

The error rate would be expressed as a

percentage of the total transactions
processed.

By tracking and monitoring this KPI over time,

you can identify areas of weakness in your
systems and processes and take steps to
improve transaction processing accuracy and
reduce errors, which can help improve customer
satisfaction and reduce operational costs.

Evans Munyuki
www.munyuki.com
 CYBER
SECURITY
METRICS
Evans Munyuki
www.munyuki.com
 MEAN TIME TO DETECT (MTTD) &
MEAN TIME TO RESPOND (MTTR)
MTTD measures the time taken by a digital bank to
detect a security breach, while MTTR measures the
time taken to respond and mitigate the breach.

Digital banks should aim to

minimize both MTTD and
MTTR to minimize the
impact of a security breach
on their customers and
operations.

This KPI can also help digital banks to identify

areas of weakness in their security systems
and prioritize their cybersecurity investments.
Evans Munyuki
www.munyuki.com
 NUMBER OF SECURITY INCIDENTS
This KPI measures the
number of security
incidents, such as data
breaches or malware
attacks, that occur over a
given period.

Digital banks should aim

to keep this number as
low as possible to ensure
that their systems and
data are protected from
cyber threats.

They should also track the types and sources of

security incidents to identify patterns and trends
that can help them to improve their security
posture.
Evans Munyuki
www.munyuki.com
 EMPLOYEE AWARENESS &
TRAINING
This KPI measures
the level of
awareness and
training among a
digital bank's
employees on
cybersecurity best
practices.

Digital banks should

provide regular train-
ing and awareness
programs to
employees to ensure that they are aware
of the latest cybersecurity threats and how to prevent
them. They should also track employee participation in
training and awareness programs to ensure that all
employees are adequately trained and aware of
cybersecurity risks. A well-trained and aware workforce
can be an important line of defense against cyber
threats.

Evans Munyuki
www.munyuki.com
FRAUD RATE
The fraud rate KPI is
used to measure the %
of fraudulent
transactions or activities.

It is used to determine
the effectiveness of fraud
prevention measures,
such as fraud detection
systems, employee
training programs, and
customer awareness
interventions by the
digital bank (in its digital
customer experience).
Evans Munyuki
www.munyuki.com
 PHISHING RATE
The Phishing Rate KPI measures the
percentage of customers who fall victim
to phishing attacks, which is a common
tactic used by cybercriminals to steal
personal information.
Evans Munyuki
www.munyuki.com
 COMPLIANCE
Compliance with
regulations and laws is
crucial for digital banks
to maintain trust with
their customers,
regulators, and other
stakeholders. To ensure
that they are complying
with relevant laws and
regulations, digital banks
should use key
performance indicators
(KPIs) to
measure their performance. Here are three KPIs that
digital banks should consider using:

Evans Munyuki
www.munyuki.com
 Regulatory Compliance Score:

This KPI measures a

digital bank's level of
compliance with
applicable
regulations, such as
Anti-Money
Laundering (AML),
Know Your Customer (KYC), and data protection
regulations.

Digital banks can use a compliance scorecard

that assesses the bank's compliance with
various regulatory requirements, assigning a
score to each area. The scorecard can be used to
identify areas of non-compliance and prioritize
remediation efforts.

Evans Munyuki
www.munyuki.com
Incident Response Time:
This KPI measures the time it
takes for a digital bank to
respond to and resolve
compliance-related incidents,
such as data breaches,
customer complaints, and
audit findings.

Digital banks should aim to have a

robust incident response plan in place
and regularly test and update the plan to
ensure that it is effective. They should
also aim to minimize the time taken to
detect, report, and resolve compliance
incidents to minimize the impact on the
bank's reputation and regulatory
standing.
Evans Munyuki
www.munyuki.com
Compliance Training
and Awareness:

This KPI measures the

level of training and
awareness among a
digital bank's
employees on
compliance-related
topics.

Digital banks should provide regular training and

awareness programs to employees to ensure that
they are aware of the latest regulatory
requirements and best practices. They should
also track employee participation in training and
awareness programs to ensure that all employees
are adequately trained and aware of compliance
requirements.
Evans Munyuki
www.munyuki.com
 Marketplace Banks
The top KPIs for Marketplace Banks
are similar to those I just covered,
with the following additions:

Customer
Partner
Lifetime
Engagement
Value (CLV)

Transaction Product
Volume Adoption

In a marketplace bank where the digital bank owns its app

and offers financial products from fintechs, the product
adoption KPI would measure the rate at which users adopt
and use the fintech products offered through the app.

To calculate this KPI, you could track the following metrics:

Number of users who have (1) downloaded the app, (2)
registered on the app, (3) viewed fintech products on the
app, (4) clicked on fintech products to learn more, (5) applied
for a fintech product, (6) been approved for a fintech
product, and (7) made a transaction with a fintech product.

Evans Munyuki
www.munyuki.com
 Next, I have in store for you

the "SUPERSET"
of essential KPIs
for

A
DIGITAL
BANK.
You will find it in the newly published
second edition on Amazon, along with
additional content.
Evans Munyuki
www.munyuki.com
Thank you for reading this whitepaper.

If you found it helpful, like, repost

(for wider distribution), and save
for future use.
This content came from the
second edition of my book
"Building A Digital Bank,"
which is now published on
Amazon. If you previously bought
the first edition of this book, please
be sure to check out the second edition
as it has more additional content.

Check out my books on Amazon by typing www.munyuki.com.

A special word of thanks to my 3 friends who proof-read the first

draft of this document and provided helpful input into this project.
They are: Craig Bond (Executive Chairman at the FinTech, Envel, Inc.
& Ex-Barclays Africa RBB CEO), Andrew Tarver (Founder of Jigsaw
XYZ, & Founding Partner at Motive Partners UK), and Tobie Van Zyl
(CEO & Founder of Bettr.App - Banking for Creators).

Evans Munyuki
Award-Winning Chief Digital Officer
www.munyuki.com
[email protected]
linkedin.com/in/evansmunyuki

Follow me on LinkedIn for

more content like this
References
i - https://www.statista.com/statistics/1228757/online-banking-users-
worldwide/

https://www.insiderintelligence.com/content/nubank-profit-signals-end-
growth-at-all-costs-neobanks

https://unboxedtechnology.com/blog/advantages-and-disadvantages-of-
performance-
indicators/#:~:text=The%20Disadvantages%20of%20Performance%20Indicat
ors&text=One%20con%20of%20KPIs%20is,team%20transformations%20in%
20a%20day.

https://www.upshot.ai/blog/7-essential-customer-success-kpis-to-track-in-
banking-apps/

https://www.fisglobal.com/en/insights/what-we-know/2021/october/10-
metrics-and-kpis-every-financial-institution-should-track

https://e-cens.com/essential-digital-banking-kpis/

*** - https://sdk.finance/what-is-digital-banking/

**** - https://ejbmr.org/index.php/ejbmr/article/download/38/28

iv - https://www.investopedia.com/terms/c/costoffunds.asp

https://www.investopedia.com/ask/answers/040815/what-level-return-equity-
common-company-banking-sector.asp

https://www.turnkey-lender.com/blog/10-vital-kpis-for-measuring-the-value-
of-your-digital-banking-operations/

https://www.pendo.io/pendo-blog/measuring-digital-banking-efforts-with-
product-analytics/

[END]