Towards transparency and freedom of choice

An unbundled pricing model for retail banks

The new regulations requiring ring-fencing of individual and business customer deposits from any investment activities, increased risk assessment and monitoring measures and minimum capital requirements are driving banks’ costs beyond the levels seen to date.

Executive summary

The above factors have a major impact on bank profits, and thus a more careful analysis of revenue streams is required. Changing the product and service pricing model is one of the alternatives and finding the right solution can prove to be a challenge.

Seeking a new pricing model for retail banks

In recent years, trends in pricing have mainly focused on bundled offerings and relationship pricing, aimed at creating packages of products at a particular price and targeting specific customer segments. This article presents one of the possible alternatives, i.e. a focus on an unbundled approach rather than packaging products
together. This model was recently evaluated by the Deloitte Centre for Financial Services via a retail bank survey and its findings have been summarised in a report called ’Shifting retail bank pricing models: managing the transition to unbundled services1’. The survey was conducted online among 4,271 U.S. retail bank customers
who had a personal checking account. The concepts presented below derive from this study and have been adapted to our local market characteristics.

Inside magazine issue 5, June 2014

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics). 

Inside magazine issue 5
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