Relationship based pricing
- Relationship based pricing
Relationship Based Pricing (RBP) is a new concept that is emerging in the banking industry. RBP is essentially a pricing and billing framework that helps banks cut through their product silos and enable customer centric pricing. Currently, due to limitations of existing systems most banks are forced to price their offerings based strictly on product usage parameters. RBP enables the bank to use customer centric parameters such as the level of overall business the customer does with a bank or the types of services he/she buys to determine pricing.
With RBP, new product bundles and prices can be easily configured and deployed. The key hallmarks of RBP are pricing freedom from product centric constraints and flexibility to include cross-product and customer specific parameters for pricing. It enables banks to pursue innovative and new approaches to manage customer relationships and improve the profitability of their businesses. It also enables banks to reward clients for their loyalty through specific pricing and rewards programs. RBP is also an automation framework that enables banks to eliminate some of their manual operations and thereby avoid revenue leakage due to human errors.
Financial services industry analyst firm "Celent" recently published a [http://www.celent.com/PressReleases/20061023/RelPricingVendors.htm report] , comparing the vendors in Relationship Based Pricing technology.
Another Financial services industry analyst Towergroup is also of the opinion that [http://www.towergroup.com/research/news/news.htm?newsId=4440 Wholesale Bankers Should Explore “Relationship-Based Pricing” To Improve Profitability]
ee also
*SunTec
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