Published on: 13 Jun 2019
Customer performance Index (CPI) is a financial performance measurable that was developed by IuteCredit, is used by IuteCredit and that will eventually become the industry standard. It is the ratio between actual repayments of a customer or customer group, versus expected repayments from that customer or customer group, during the particular period. As opposed to NPL-based measurement, which is static and subject to various manipulation possibilities, CPI shows very clearly the current cashflow of the business and is also usable in management of credit risk, including individual loan approvals.
IuteCredit’s targeted CPI is around 90 (we expect 90% of expected repayments to be actually performed by customers in due time or with maximum 30 days delay. The remaining 10% of repayments are then subjected to overdue procedures and, if unsuccessful, default procedures.
IuteCredit Group’s actual CPI has been historically between 87…91. Year 2018 actual value is 88.