Consumer Banking

Retail Consumer Banking Systems

Global consumer banks’ traditional product-centric banking models will come under increasing scrutiny as regulation becomes more onerous and customer expectations, inspired by improving experiences from other industries, increase.

Fragmented, legacy systems will not allow large retail banks to easily build a single view of all of the products and services that their customers consume, let alone measure revenues and profitability. Without such a view, retail banks will find it difficult to offer the holistic relationship-based pricing propositions consumers are increasingly demanding.

Growing dissatisfaction with simple bundled or packaged account models will likely drive the need for banks to develop new and more transparent relationship-based pricing propositions. Customers will expect their banks to understand their current needs while pre-empting their changing needs better, and to intuitively communicate relevant alternative or additional products and services. But how many banks have this capability today?

Regulation will impose ever greater obligations on banks, and in many areas. Customer communication will have to become more transparent. Product terms and conditions, eligibility criteria and the suitability of particular products will have to be explained more clearly and visibly.

Pricing based on the relationship is based on many related parts of the whole.

Relationship based pricing requires a single view of the customer and the ability to measure value holistically.

Other regulation is driving a convergence of rules and standards and making it easier for new, non-bank service providers to enter the market, increasing competition and downward pressure on pricing, making it even more important for banks to be able to demonstrate the value of relationship banking to their clients. Conversely, many regulatory bodies are slow to transition away from increasingly redundant products, such as cheques, leaving banks to bear the continued costs.

Retail banks will need to re-invent the way in which they interact with, and sell products to, their customers. They will also need to deliver more customer-centric models, capable of responding to, adapting to and even pre-empting customer needs.

Retail banks will require solutions that enable them to evolve their customer-centric models organically, based on testing their strategies and measuring feedback from their own customers, and adapting to the regulatory, competitive and technological landscape along the way.

miRevenue for Retail Banking: Consumer Banking

Product and Pricing Lifecycle Management (PPLM) solutions will likely form a key component of a bank’s revenue enhancement toolkit. As market leader, Zafin, through its miRevenue suite, is able to provide the most innovative PPLM solution in the market today. miRevenue provides a single platform that supports:

  • Relationship based pricing and billing
  • Bank-wide loyalty
  • Customer and product onboarding, including eligibility rules
  • Dynamic profitability valuations and comparisons with agreed client contracts