Retail bank pricing

Resetting customer expectations

​A customer survey conducted by Deloitte to delve into bank pricing suggests a uniform approach to communicate and execute pricing strategies might not be effective. Banks may have to account for differences in perceptions and price sensitivity among their customer base by rethinking their approach to customer segmentation.

​Many banks in the U.S. are under substantial pressure to reconsider the economics of retail banking. Service charges on deposit accounts, one measure of such income, have fallen both in absolute dollar terms and as a percentage of operating revenue. And in the context of recent declines in average net interest margins, banks are likely to need fee income more than ever. To be sure, cost cutting may play a large role in this effort, but it is safe to say that sustainable solutions will likely involve the revenue side of the equation.

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