Industry

Banking & Financial Institutions
Private Banking / Wealth Management

Company Profile

  • Leading European private bank
  • Implementing a Pricing Excellence Program to boost revenues

Situation and Objectives

  • Main focus was the "self-directed" business where the bank gives advice only to the clients on how to invest their money.
  • While a typical price list in this area consisted only of tables, small-print and numbers, Simon-Kucher shifted its focus to value.

Approach

  • Value offering and communication: Simon-Kucher packaged the services into bundles and created a brochure that describes to offering.
  • Value pricing: Completely new pricing approach by introducing a fixed annual fee for each of the three packages.
  • Value selling: Changing the bankers' mindset and prepare them for selling the new offering and price model to their clients.

Results

  • In the first year, the project increased the bank’s annual revenues by US$55m per year. It was therefore rolled out in other areas as well.
  • Given the positive results, we also optimized the bank’s foreign exchange pricing, discretionary business and credit pricing. These initiatives yielded another US$45 million of additional revenues.

Impact

  • Revenue increase of 10%
  • Profit growth of 30%