This article will focus on Balanced Scorecards for Banks.
Definition: According to TechTarget, a performance scorecard is a graphical representation of the progress over time of some entity, such as an enterprise, an employee or a business unit, toward some specified goal or goals. Performance scorecards are widely used in many industries throughout both the public and private sectors. The performance scorecard is an essential component of the balanced scorecard methodology.
The focus of this article will be on balanced scorecards for banks. Implementation of the balanced scorecard for banks and financial institutions is a very tricky thing, according to BSC Designer, as there is huge temptation to focus on financial indicators only. We all know that banks work with money to make more money. So, it is very easy to ignore non-financial indicators that have a direct impact on financial performance of banks.