Article
Pricing for the Banking Industry
Unlocking value through pricing excellence
The particularly challenging task of growing profitability has placed the financial services industry under substantial competitive pressure. Most markets and products have reached a high level of maturity, leaving little opportunity for further volume-based revenue growth.
Retail products and services such as mortgages, credit cards and more and more brokerage are turning into a commodity with hardly any USP. Clients are increasingly sophisticated, more demanding and are better informed. This shift in client awareness, in addition to changing regulations such as MiFID, is leading to higher price transparency.
Unlocking value through pricing excellence
Despite the changes in the client base and market, profit growth remains the main goal for many banks. One way to achieve this goal is to grow revenues in a way which does not require risky acquisitions, facility expansions or staffing increases. Price management has significant direct impact on the top line. Even if volume-based revenue growth is difficult, a 10% improvement in price can yield profit improvements of 25%!
