What are Fintech Companies KPIs?

KPIs, which are sometimes referred to as key performance indicators (KSIs), are metrics used to evaluate business success. A Fintech company's primary focus may be on year-over-year (YOY) revenue growth if it wants to be the fastest-growing firm in its sector. However, same-store sales may be more important to a retail chain because of how they track overall performance.

Key performance indicators (KPIs) are only as good as the data used to create them. The purpose of key performance indicators (KPIs) is to expedite the dissemination of information necessary for management to make educated strategic choices. In particular, key performance indicators (KPIs) can be used to compare one company's strategic, financial, and operational successes to those of its peers in the same industry.

Categories of KPIs

Most Key Performance Indicators (KPIs) may be broken down into one of seven broad categories, each of which has its unique traits, period, and audiences.

• Acquisition- Acquisition metrics reveal information on the number of new clients a business can attract. Having millions or perhaps billions of users is crucial for an app-based business model.
• Activation-To learn whether or not your items are well received by consumers, look into activation 
• Engagement-A user's level of engagement can be used to gauge their satisfaction with your business. This is essential for any fintech business since it allows for quick adjustments to fix problems as they arise.
• Retention-If your business strategy is dependent on a subscription fee, measuring your performance by retention rate is crucial. 
• Referrals- Referrals are free marketing and one of the most underrated KPIs. Several companies neglect this metric, but nothing is more powerful than one customer incentivizing another one to use your product.
• Financial- At the end of the day, the two most crucial financial measures are revenue and cost. Along with standard financial KPIs, certain fintech-focused measures should be analysed.
• Marketing-Convincing strangers into actually using your product and keep using it repeatedly all boil down to how you market your product.

Top Company KPIs for Fintech companies :

To create the highest-quality fintech app possible, it is essential to track the right key performance indicators (KPIs). This article will give you the information you need to do just that.

• Average Revenue Per User (ARPU)

The amount of money a business makes off of each customer is quantified by their "average revenue per user," or ARPU. Average monthly revenue per user (ARPU) is typically determined monthly, though this is not a hard and fast rule.

Financial technology companies can learn a lot about their customer base and find their "whales" by keeping an eye on the average revenue per user (ARPU).

• Average Time Per User

This metric tracks how long it has been since a user last interacted with a website or app, beginning with the time they first logged in until they left the session or were inactive for a given amount of time. The typical time spent there will change depending on the stuff you offer.

• Customer Retention Rate

Research shows that keeping existing consumers is extremely beneficial to a business. There is a direct correlation between client retention and revenue growth (up to 95%). Because it reveals whether or not the company has exceeded the expectations of its current consumers, this indicator is crucial for FinTech firms. As a matter of fact,

• Cost of Customer Acquisition (COCA)

What is meant by "cost of customer acquisition" (or "COCA") is the typical sum spent to win over a new client. High client acquisition costs sustained over a lengthy period can quickly deplete a young company's cash reserves. It's quite difficult to stay in business without a steadily increasing stream of new customer revenue.

• Burn Rate

The burn rate is likely the most critical KPI to watch for early-stage enterprises. Because resources are limited, businesses have a significant problem of rapidly burning money. A positive burn rate indicates that you spent more than you earned, whereas a negative burn rate indicates that you earned more than you spent.

Conclusion

These KPIs tell you how well your app operates technically, how engaged your customers are, and how much money they contribute to your business. After defining KPI measurements, you can optimize your strategy for a larger client base and a more profitable market. Using these KPIs properly will benefit your firm.

Written By : Faysal M. Harb

Business Director