Harnessing AI for smarter pricing strategies in banking
The dynamic nature of financial services highlights the crucial, yet underdeveloped, role of pricing within banks. For many financial institutions in Asia, pricing strategies are still fragmented, heavily reliant on manual decision-making, and lacking the analytical depth required to maximize profitability while maintaining client satisfaction.
Dr. Silvio Struebi and Alan Lim, partners at Simon-Kucher Elevate, argue that pricing in banking is undergoing a transformation driven by artificial intelligence and machine learning. AI is no longer just an enabler for risk management and trading algorithms; it is now reshaping the way banks structure their commercial pricing. With the right AI-powered solutions and processes, banks can enhance pricing transparency, improve client retention, and reduce revenue leakage, while also empowering relationship managers with data-driven insights at the point-of-sale.
Despite its commercial importance,…