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Cooperative banks – pricing
In recent years, the pressure on cooperative banks with regard to pricing has increased significantly. Let us show you how we can help you meet the associated challenges.
Increasing complexity in pricing
Cooperative banks are faced with rising challenges when it comes to pricing. What is more, the BGH (German Federal Court of Justice) ruling of April 27, 2021 requires resource-intensive approval processes that make price adjustments significantly more complex.
On top of that, in the wake of the interest rate turnaround the net interest spread for deposit business has returned to cooperative banks’ profit and loss (P&L) statements after more than a decade of absence. This is accompanied by increased competition for customer deposits, which has led to a noticeable surge in deposit withdrawals at many institutions.
The interest rate turnaround has also caused a dramatic slump in the lending business of many banks, which in turn has given rise to intense price competition. In addition, the complexity of product administration is increasing, so that even significant six-figure income is not always recognized in P&L statements.
