What is data-driven pricing as a service?
In times of tight margins and increased capital requirements for future investments, it is essential for financial institutions to exploit the available pricing leeway in interest and commission business. Various influencing factors such as the competitive environment, product strategy, and, above all, the price sensitivity of different customer groups must be taken into account.
Data-driven pricing from msg for banking
Our tool for data-driven price management is able to provide banks with information for determining the optimal price based on internal and external data. This helps to defuse the conflict between “too expensive and therefore uncompetitive” and “too cheap and therefore unprofitable.”
We also rely on the support of artificial intelligence, for example in the intelligent segmentation of customer groups or the calculation of a probable price-sales function in the event of a planned price change.
Benefit
- Revenue optimization through better utilization of pricing flexibility and pricing power
- Intelligent, AI-based customer segmentation as part of product and pricing policy
- Faster decisions and less individual data processing
Tool performance
- Aggregation and qualification of internal data (e.g. customers, transactions, online user behaviour, price lists) and external data (e.g. competition, socio-economic panel data, macroeconomic data)
- Performing AI-based customer segmentation beyond deterministic classifications and deriving customer response patterns, taking into account pricing strategy (cost plus, market follower, value-based, skimming)
- Determination of the applicable, individual price-sales function by calculating AI-based price sensitivities
- Derivation of marginal sales and marginal revenue for a price change of x and determination of the price range.
Your contact person
Heads the Pricing & Controlling department at msg for banking and advises on business area management, overall bank management, P&L planning, LCR management, reporting, implicit options, and liquidity risk management (solvency).