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 Service (economics), 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, acco ...
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, 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
Zafin is a banking software enterprise platform company that provides relationship-based pricing to banks and financial institutions.
The company has offices in Canada, USA, UK, Germany, Dubai, Malaysia, South Africa, and India. The company is fo ...
,
* 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 p ...
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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 acqui ...
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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 development ...
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Pricing strategies
A business can use a variety of pricing strategies when selling a product (business), product or Service (economics), service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's p ...
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Time-based pricing
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Value pricing Value-based price (also value optimized pricing and ''charging what the market will bear'') is a pricing strategies, pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or ser ...
or
Value-based purchasing
In the healthcare industry, pay for performance (P4P), also known as "value-based purchasing", is a payment model that offers financial incentives to physicians, hospitals, medical groups, and other healthcare providers for meeting certain performa ...
External links
ZafinSunTec's Xelerate Relationship-Based Pricing (RBP)
References
Pricing
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