Nordic retail and business banking is becoming more competitive, more transparent, and more digital. At the same time, margin pressure is intensifying and capital efficiency is under scrutiny. Yet in many banks, profitability management remains fragmented.
Pricing is still frequently governed through product tariffs, informal branch practices, and case-by-case discounting. Cost allocation models are often insufficiently granular to provide a reliable view of customer or segment profitability. The link between ROE targets, risk, and frontline pricing decisions is weak.
The result is familiar: margin leakage, inconsistent pricing across advisors and branches, slow approval processes, and customers who struggle to understand why similar profiles receive different rates.
Across Nordic banks, analyses frequently reveal lending rate variations of up to 150 bps for identical risk and customer profiles. This is not competitive differentiation, it is unmanaged profitability.
Join us at this webinar session where experts from AQRISK and Simon-Kucher will explore:
Why broader profitability management is critical now:
In a low-growth, high-transparency environment, incremental margin improvements and disciplined capital allocation matter more than ever. However, many banks still lack:
• Clear relationship-level profitability grounded in robust cost allocation
• Transparent linkage between ROE targets, risk, and pricing
• Defined guardrails for discounting and churn tolerance
• Real-time guidance enabling advisors to price deliberately and consistently
Without a strong profitability foundation, pricing becomes reactive rather than strategic.
The commercial value at stake:
Banks that professionalize profitability management and relationship-based pricing can realistically achieve:
• 10–25 bps improvement in net interest margin
• 7–10% uplift in fee income
• 20–30% productivity improvement in time spent on pricing and approvals
Beyond direct financial impact, stronger pricing discipline enables:
• Faster response times in sales dialogues
• More deliberate competitive positioning in defined target segments
• Higher conversion rates
• Reduced internal friction and approval bottlenecks
Better pricing is not about increasing prices. It is about aligning pricing with value, risk, capital usage, and long-term customer economics, while enabling advisors to act quickly and confidently.
What we will cover:
1. Establish a strong profitability baseline
Build transparent and defensible cost allocation and customer-level profitability models tied to ROE and capital usage. Create clarity on where value is truly generated—and where it is eroded.
2. Translate strategy into segment-based, relationship pricing logic
Define your target segments and desired market position. Convert business strategy into differentiated pricing logic at customer level, grounded in lifetime value, risk, and strategic priorities. Move from product list prices to relationship-based target pricing.
3. Equip the front line with modern pricing tools
Provide clear “target vs. minimum” guardrails and decision support tools that balance competitiveness with profitability—reducing unnecessary discounting while increasing response speed.
4. Institutionalize rate and revenue management governance
Establish ongoing monitoring, accountability, and leadership attention on relationship profitability—not just volume growth. Ensure pricing becomes an enterprise-wide discipline.
Who should attend:
• Banking CFOs
• Heads of Business Banking
• Heads of Personal Banking
• Heads of Pricing
• Related functions and staff
This webinar is free of charge.
