Can smarter pricing drive sustainable growth in banking?

Pricing is one of the most powerful tools for business success, yet many banks fall short of leveraging it effectively. The result? Missed revenue opportunities, declining profitability, and disengaged customers.

What’s holding banks back? Common pitfalls include failing to view pricing as a strategic growth driver, underestimating the true cost of service delivery, and relying too heavily on unjustified discounting. By addressing these issues, banks can unlock smarter pricing strategies that drive sustainable growth and deliver greater value to their customers.?e region is ripe for a mobile-first approach to financial inclusion.

Top five strategies to optimise pricing in banking

To drive growth and profitability, banks must adopt smarter pricing strategies that stand out from competitors and deliver exceptional value. Here are five key approaches to achieve this:?

1. Prioritise pricing for growth: Go beyond traditional metrics like volume and assets under management. Treat pricing as a key driver of revenue growth by aligning pricing strategies with growth objectives, unlocking revenue opportunities and gaining a competitive edge.?
2. Understand the true cost of delivery: Accurately calculate the costs associated with delivering each product or service, including operational, regulatory, and overhead expenses. Transparent, cost-based pricing ensures profitability and builds customer trust.?
3. Bring order to discounting: Ad-hoc discounting often reduces revenue and creates inconsistencies. Implement a structured approach to discounting to minimise revenue leakage, maintain fairness, and support value-driven pricing.?
4. Stand out with differentiation: Develop unique, value-added offerings that distinguish your bank from competitors. Whether through premium service bundles or tailored pricing tiers, differentiation helps justify higher prices while enhancing customer loyalty.?
5. Leverage data and technology: Use advanced analytics and technology to optimise pricing decisions. Leverage data to personalise offers, implement dynamic pricing models, and improve operational efficiency.

The banking industry faces significant challenges in effectively pricing its products and services. By addressing these pricing challenges, banks can turn an underutilised tool into a key driver of growth and customer satisfaction — ensuring they stay ahead in an increasingly competitive landscape.?

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A special thank you to Dr. Silvio Struebi for sharing his valuable insights in one of our podcast episodes. For a deeper dive into the podcast, listen to the full episode here:??? ???

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