The FinTech KPIs (Key Performance Indicator) is a measurable value that indicates how well a company is doing in terms of revenue and profit generation. Monitoring of FinTech KPIs indicators shows if a company is achieving its long-term goals.
Regardless of size, age and industry, every company must be aware of its financial performance. While accountants take care of all expenses, income, and budgets, the company’s leadership must also be informed about important financial measures.
The important popular financial KPIs for your FinTech KPI dashboard
• Operating Cash Flow (OCF) shows the total amount of money generated by a company’s day-to-day business operations. The financial metric suggests if a company can maintain a positive cash flow needed for growth or requires external funding to meet all expenses. Operating cash flow is calculated by adjusting net income for items such as depreciation, inventory changes and changes to receivables to be received.
• Current report A current ratio of less than 1 indicates that the company is unable to meet its financial obligations without additional cash flow.
This metric reflects the commercial suitability to pay for its financial obligations over a period of 1 year. This financial KPI takes account of receivables and payables to customers. It, therefore, has the ability to indicate whether a company has a healthy operating cycle or not.
• Quick Test / ACID Test The acid-test relationship indicates whether a company has sufficient short-term assets to cover its short-term liabilities. The quick report provides a more accurate overview of a company’s financial health than the current ratio as it ignores liquid assets such as stocks.
• Burn Rate This financial KPI reflects the rate at which a company spends money on a weekly, monthly or annual basis. This basic metric can help small businesses that do not undertake extensive financial analysis.
Compared to the net profit margin and revenue, the burn rate indicates whether the operating costs of the organization are sustainable over the long term.
• Gross profit margin is one of the best indicators of a company’s financial health. It is basically that KPI which considers the amount of money left in revenue after deducting the cost of goods sold.
• Accounts Payable Procedure Costs The process costs of the Accounts Payable process indicate the total cost of processing all payments and invoices over a period of time. A look at the results of APQC’s Survey on the productivity of the Accounts Payable Process (AP) shows that there is a reason to invest in electronic presentation, processing and payment technologies (EIPP) as these significantly reduce the costs of invoice processing and Payment to suppliers.
• Budget Creation Cycle Time time indicates the period in which the budget of a company is researched, planned and agreed. Along budget cycle is not necessarily a bad thing but can cost valuable resources such as the time of leadership.
• Buyer Cost This financial KPI shows a company’s current payments to sellers (all who provide goods or services to an organization or individuals). High manufacturing costs could indicate that the company has problems paying in time to its suppliers.
Success KPIs of Fintech Company
- The number of orders.
- The number of new customers.
- The number of repeat customers.
- Total registered customers.
- Bounce rate.
- Audience demographics.
- Response rate.
- Customer conversion rate.
- Number coupon codes redeemed.
- Number discount codes redeemed.
- The number of times seen, impressions.
- The number of clicks and bounces.
- The number of orders.
- Total gross revenues.
- Gross & Net Profit.
- Marketing Spend.
- Cost per visitor.
- Cost/profit per new customer.
- Cost & Revenue per campaign.