Relationship-based pricing explained

Relationship-based pricing (RBP) is a pricing and billing framework in the banking industry where pricing is determined based on a customer's overall purchases and circumstances, rather than being delivered on a product-by-product basis. With RBP, banks use customer-based parameters, such as the level of overall business the customer does with a bank or the types of services purchased, to determine pricing.

Financial services industry analysts like Celent and TowerGroup endorse relationship-based pricing to improve profitability.^[1]

RBP billing products include ORMB from Oracle Corporation, miRevenue from Zafin and Product & Pricing Catalog from Amdocs.^[2]

Implementation

In 2013, California-based Bank of the West began an RBP project using Zafin Labs software^[3]

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

Notes and References

1. Web site: 2011-07-17 . TOWERGROUP: WHOLESALE BANKERS SHOULD EXPLORE "RELATIONSHIP-BASED PRICING" TO IMPROVE PROFITABILITY . https://web.archive.org/web/20110717080427/http://www.towergroup.com/research/news/news.htm?newsId=4440 . 2011-07-17 . 2023-02-25 . TowerGroup.
2. Web site: Amdocs Product & Pricing Catalog for Banks . 2023-04-17 . Amdocs . en.
3. Web site: 2013-09-30 . Bank of the West's CIO Is on a Quest for Real-Time Analytics . 2015-06-24 . American Banker.