Relationship-based pricing
Relationship-Based Pricing (RBP), also known as Relationship based Pricing is a concept in the banking industry. RBP is a pricing and billing framework where pricing is determined based on a customer's overall purchases and circumstances, rather than being delivered on a product-by-product basis. RBP enables banks to use customer-centric parameters to determine pricing, such as the level of overall business the customer does with a bank or the types of services purchased.
Financial services industry analysts like Celent and TowerGroup endorse relationship-based pricing to improve profitability.[1] A regional US bank and subsidiary of BNP Paribas, Bank of the West, recently completed an RBP project. [2]
Lot of leading banks as well as insurance companies in USA and Europe have adopted relationship based pricing by implementation of billing engines available from various product vendors.
Relationship based billing products:
- ORMB from Oracle Corporation,
- miRevenue from Zafin,
- Xelerate from SunTec.
Many system integrator firms in the IT industry nowadays focus on "Pricing & Billing" as a consulting/implementation practice as part of their business. We see global firms like Deloitte and Accenture focus on implementing products from companies listed above. Niche players like RIA Advisory also play a vital role in the "Pricing & Billing" domain.
See also
- Demand-based pricing
- Dynamic pricing
- Premium pricing or Price premium
- Pricing
- Pricing science
- Pricing strategies
- Time-based pricing
- Value pricing or Value-based purchasing
External links
- Zafin
- Oracle Revenue Management and Billing (ORMB)
- SunTec's Xelerate Relationship-Based Pricing (RBP)
References
- ^ http://www.towergroup.com/research/news/news.htm?newsId=4440
- ^ "Bank of the West's CIO Is on a Quest for Real-Time Analytics". American Banker. 2013-09-30. Retrieved 2015-06-24.
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