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Importance of Relationship Based Pricing

                In today's banking industry , most of the core banking solutions will support Customer Information File, General Ledger System, Transaction Processing and Posting, Loans & Deposits system, MIS reporting and multi channels.  However, offering intelligent pricing to a custome,r based on the length and breadth of relationship is not addressed in the present core banking system.

                Hence it is vital for the banks to restructure the existing business model as customer centric to build a holistic view of the customer. This requires identifying and linking all internal sources of customer data capable of identifying each customer from 360 degree view, regardless of where that information resides. Not only  this is an important process in driving multichannel strategies, but it is also the basis for creating and delivering a consistent view of the customer specific details.

                Your views please.



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A Finextra member
A Finextra member 01 February, 2012, 22:07Be the first to give this comment the thumbs up 0 likes

Agreed. But tools to provide this and much more have been available and largely unused for many years.  For example, Hogan Systems  (now CSC) have offered the Relationship & Profitability System and the Preferred Client Services System integrated with the customer & transaction systems since the mid 80's.

These provide customer & customer realtionship group analysis, pricing and modelling as part of the real time core system unlike the many systems that provide a tack on approach to market & corporate analysis.