Private Banking Pricing Pulse Check
Service-oriented pricing framework as a lever
Looking at the business figures of many providers of private banking services, a fairly uniform development can be seen in recent years: constant income at best in spite of significantly rising volumes, substantially lower margins, high regulatory expenses, and profits that are characterized by positive extraordinary items. If there is no noticeable increase in profitability in the medium term and the current market environment continues, companies will have to ask how sensible it is to keep operating.
At the same time, private banking clients are indicating a high willingness to pay for high-quality, personalized services and the resulting time savings. They see the price as part of the total client care package. If a bank has a good integrated package of offers and services, then a well-designed and service-oriented pricing framework provides a considerable lever for realizing earnings potentials.
In light of the relevance of pricing right now, zeb surveyed executives and pricing specialists at European institutions on their existing pricing framework and compiled the findings in the “zeb.Private Banking Pricing Pulse Check”.