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Savings banks – pricing

In recent years, savings banks have been confronting considerably increased pricing challenges. Find out how we can help you to solve them.

Content
Challenges in detail
Our solutions
References
Contact

Herausforderungen im Detail

In the past years, savings banks have had to cope with increasing challenges in pricing. With the BGH ruling of April 27, 2021, approval processes have become significantly more complex, involving more resources than before.

And with the interest rate turnaround, after more than a decade the net interest spread for deposit business has returned to banks’ income statements. However, competition for customer deposits has now also clearly intensified, and many savings banks have already experienced outflows of customer deposits.

With the interest rate turnaround, the lending business has slumped dramatically in many institutions, leading to corresponding price competition in this area, too. In addition, the complexity of product administration is increasing, so that even significant six-figure income is not recognized in the income statement.
 

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BGH ruling

The ruling has complicated approval processes, thus tying up more resources.

Interest rate turnaround & customer deposits 

After more than a decade, the net interest spread for deposit business has returned, thus changing the landscape considerably.

Price competition

A dramatic slump in the lending business has led to intense price competition.

Product administration

Complexity has increased, so that large part of the income is not recognized in the income statement.

Our approach to pricing optimization

zeb supports savings banks in all pricing issues and challenges: from developing individual pricing strategies to optimizing pricing for individual products to enhancing employees’ price enforcement skills.

Our successful projects

  • For a savings bank with average total assets of more than EUR 6 billion, we achieved an increase in current account income of EUR 5.3 million per year.
  • In a savings bank’s credit pricing, we were able to achieve margin increases of more than 30 BP in the commercial sector.
  • By systematically reviewing, optimizing and correcting price parameters in OSP, we were able to generate additional revenue of around EUR 550,000 for a savings bank with average total assets of around EUR 4 billion.

Our methods

Over the past five years, we carried out more than 200 successful pricing projects. Owing to our experience and high level of expertise, we use standardized process models in all projects, which

  • are optimized for savings banks and continuously developed further,
  • ensure an efficient project flow,
  • minimize expenses for savings banks

and are nevertheless individually tailored to the needs of the individual savings banks.

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“With optimized pricing, many institutions could significantly boost their income – zeb supports savings banks in exploiting this potential. In our pricing projects at savings banks, we frequently exceed income expectations by more than 30%.

Florian Hagenow, Senior Manager

Our references

Feel free to contact us 

Peter Klenk, zeb

Dr. Peter Klenk

Partner
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Florian Hagenow

Senior Manager