Price Management in Financial Services

The retail financial services industry is changing. Deregulation has
created a competitive market place in which successful providers are
becoming increasingly customer-centric. Pricing has to also take into
account all of the current regulation and is likely to be heavily effected
by future legislation coming out of the current financial crisis. Therefore
pricing is becoming a major strategic issue, but the majority of providers
still use out-dated risk and cost-based pricing methods, and have
yet to develop a centre of excellence around their pricing processes.

So what is price management? Price management is the end-to-end
process of optimising, communicating, and enforcing prices and discounts.
The benefits of improved price management are undeniable.
According to management consultants, Simon Kucher & Partners, in
the financial services industry today, with cost bases reduced and market
shares hard to move, CEOs have yet to fully exploit pricing, but it is
the most powerful profit lever of all. AMR Research, in a 2009 article,
stated:

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