Pricing in Banks: The Key to Delivering Exponential Value

 The relationship between banks and their customers has evolved over the past decade, thanks to technology-driven innovations. This has led to customer relationships becoming not only more digitally disintermediated and less branch-centric, but also increasingly fickle. The pandemic further made customers even more price-conscious and amenable to shift loyalties to benefit from better pricing.

In such a scenario how can banks win new customers and retain existing ones? It becomes crucial to consciously factor pricing when formulating strategies and plans to deliver “customer centricity” and “superior customer experience journeys.”

In this Point of View article, you will discover:

  • Why right pricing is the hero for banks
  • Four distinct areas to focus on to ensure contextual price
  • The role of technology to boost pricing ability and agility

Comments

Post a Comment

Popular posts from this blog

Banking on Customer Behaviour

  Banking has gone through a paradigm shift and is no longer the same as it was even two decades ago. Even before the   pandemic changed the way the world operated, 49% of banking consumers showed keen interest in Internet banking and 47% preferred mobile banking. 1 The outbreak of Covid 19 virus and the subsequent restrictions has only strengthened the consumer’s belief in digital banking, leading to 57 % of them preferring Internet banking and 55% opting to bank on mobile applications. With this, the entire concept of banking is changing as physical branches are now being replaced with applications. This technological change has opened new doors for consumers to gain control of their transactions. Banks need to re-evaluate their business models. The only way to tackle the changing environment is by putting customer behaviour at the heart of everything they do.   Transformation of Banking   The banking business model has lacked both, customer involvement and differentiation, for decad
Read more

What is Cloud Deployment?

  The integration of software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) into the cloud, to act as a solution that allows users to access data is known as cloud deployment. There are many kinds of cloud deployment models used by businesses, enterprises, and even banks. These are private, public, hybrid, or community models. The models are built based on different factors. Businesses choose a cloud deployment model based on the needs of the user or consumer and the needs of the organization. Banks and other financial service providers are also incorporating cloud deployment into their systems. A  cloud-native platform for banks   allows them to centralize many of the services they offer to make it more convenient and user-friendly. Different Kinds of Cloud Deployment Models As mentioned above, four different kinds of cloud deployment models are used based on the needs of the organization. The banking infrastructure has changed and evolved i
Read more

Pricing for the Open Banking Economy

  By allowing banks to leverage third party applications to expand their product portfolios, open banking opens the doors to limitless innovation.  Traditionally, customer data always remained with the bank. Open banking represents a fundamental shift in this paradigm as it puts customers in charge of their own data. They are free to share their data including transaction details with third parties, which helps different third-party organizations to come up with personalized, intuitive, and cost-effective offerings. This will lead to the adoption of banking-as-a- service and open limitless possibilities for differentiated and customized offerings across numerous touch points. Understandably, interest in open banking models is high. In 2020, 29 percent of CXOs said that open banking was their choice of innovation strategy for the future. 1  And 45 percent said it was a part of their larger digital ecosystem vision. As open banking picks up pace, organizations have to figure out the best
Read more