The banking system and bank institutions can greatly benefit from balanced scorecard measurement and management system. Bank institutions are one of the most people-based and people centered industries. Corporate strategies of banks almost always include the satisfaction of the needs of its client base. This makes the banking system the most robust sector of industrial and commercial finance. A bank balanced scorecard implementation can ensure that the key strategy of the institution will be carried out to the fullest. The balanced scorecard system, being a strategy driven management tool, can help bankers and managers in accomplishing their institution ‘s mandate.
Most banks anchor their strategy on three essential elements namely, superior customer service and satisfaction, low cost delivery of services and operational efficiency, and growing sales and financial viability. These areas are also the key perspectives of balanced scorecard system. The application and roll-over of balanced scorecard as a strategic management tool of banks would not be very difficult. Managers however should create achievable balanced scorecard metrics based on those general strategic concerns. It has been noted by some bankers that some parts of the bank ‘s strategy has been lagging behind in the drive to improve financial performance. With a set metrics for each major strategic concern, bankers now can ensure that the whole strategy can be accomplished.
Bank balanced scorecard application increases not just the profitability of financial institutions but also reinforces other non-financial aspects of its operation. The institution of balanced scorecard can ensure that bank strategy and mission can be accomplished.