Pricing
All retail banks have pricing models, but few understand what will actually happen when price is changed. As the economic and competitive environment rapidly changes, pricing models often become outdated quickly.
Using Test & Learn™, retail banks can try changing acquisition rates for some markets or existing product rates for some customers and measure the impact of that change. More importantly, this testing approach identifies the types of customers who are more rate sensitive, which can in turn be used to measure the impact of that change. This testing approach provides answers to key questions like:
- Which types of customers are more rate sensitive?
- What is the right rate for each customer and each product?
- Should some markets have a higher or lower acquisition rate?
Retail banks are able to use Test & Learn™ to significantly improve profit by making smarter rate decisions and are also continually testing to refine the optimal rate as the market evolves.
Click here to read about how a leading bank used APT's Test & Learn™ solution to fine-tune deposit pricing in the Rate Optimization Case Study.
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