These solutions complement the Dynamic Banking model pioneered by Amdocs, which can help retail banks achieve greater profitability by offering personalized service and product packages to customers. The new solutions include Amdocs Dynamic Pricing and Product Bundling Solution, Amdocs Customer Communications Solution, and Amdocs Mobile and Micro-payments Solution.

"In an environment that gives consumers many choices, banks have not offered a value proposition that encourages strong customer loyalty, high customer satisfaction and consolidation of their banking relationships," said Kathleen Khirallah, research director, Retail Banking, at TowerGroup, a leading financial services research and consulting firm. "Amdocs' Dynamic Banking offers the type of approach banks should consider as a way of differentiating themselves with integrated customer management. By enabling innovative product bundling and pricing and streamlined customer communications, this approach can help banks increase revenue per customer as well as customer satisfaction and loyalty."

The Amdocs Dynamic Banking model helps retail banks combat one of their biggest concerns, customer churn. Retail banks have relatively low customer loyalty and experience significant customer turnover each year. The average customer uses less than two products at one bank, yet has ties to an average of four other financial institutions. Dynamic Banking is based on the strategy of bundling products and tailoring services using customer data to help increase the number of products and services per customer, building loyalty and reducing churn.

"Amdocs' Dynamic Banking strategy is the answer for banks looking to strengthen and grow their customer relationships," said Ralf Neidig, team manager, CRM IT international development of Cortal Consors, a BNP Paribas company and the European leader in online savings and brokerage for private individuals. "Since 2001, we have trusted Amdocs with our customer relationship management strategy and we look forward to reaping the benefits of implementing the new banking solutions."

To successfully adopt the Dynamic Banking model, banks must ensure that their systems are integrated across all lines of business. However, many bank IT infrastructures currently are segmented by product and include several functional redundancies. These redundancies can range from account opening functions to service fulfillment capabilities and make it difficult to share customer information across product lines. Cross-selling and offering bundles in real-time is nearly impossible with the current structures.

"Dynamic Banking is a cost-effective alternative to completely replacing a bank's current IT systems," said Michael Blum, president, Financial Services Division, Amdocs. "By adopting the Dynamic Banking model and using Amdocs' solutions, banks can save by gradually updating their IT systems one business component at a time."