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
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, ...
industry analysts like Celent and
TowerGroup endorse relationship-based pricing to improve profitability. A regional US bank and subsidiary of BNP Paribas,
Bank of the West
Bank of the West is an American financial institution headquartered in San Francisco, California, United States. It is a subsidiary of the French international banking group BNP Paribas and has more than 600 branches and offices in the Midwes ...
, recently completed an RBP project.
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
Oracle Corporation is an American multinational computer technology corporation headquartered in Austin, Texas. In 2020, Oracle was the third-largest software company in the world by revenue and market capitalization. The company sells da ...
,
* 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 lik
RIA Advisoryalso play a vital role in the "Pricing & Billing" domain.
See also
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Demand-based pricing
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acqui ...
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Dynamic pricing
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Premium pricing or
Price premium Price premium, or relative price, is the percentage by which a product's selling price exceeds (or falls short of) a benchmark price. Marketers need to monitor price premiums as early indicators of competitive pricing strategies. Changes in price pr ...
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Pricing
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acq ...
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Pricing science Pricing science is the application of social and business science methods to the problem of setting prices. Methods include economic modeling, statistics, econometrics, mathematical programming. This discipline had its origins in the developmen ...
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Pricing strategies
A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, prici ...
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Time-based pricing
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Value pricing or
Value-based purchasing
External links
ZafinSunTec's Xelerate Relationship-Based Pricing (RBP)
References
Pricing
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