Shifting from a Product-centric Approach to a Customer-centric Approach

19 November 2014

For many banks, the status quo is no longer an option. Traditional revenue sources are under pressure. The current low-interest rate environment renders lending margins unsustainable as a source of long-term revenue, so banks are turning to a fee-based business model.

New market entrants are offering products and services without the legacy infrastructure of established financial institutions. Amidst a backdrop of increasing competition, commoditized product offerings and stringent regulatory pressure around data transparency, banks quickly realize that they need to do more with less and find new ways to generate revenue from, and deliver value to, the clients they already have.

Whether it’s selling more products to current customers, driving customers to adopt lower-cost channels or bringing products to market faster, there is one common denominator – relationship value. Banks must return to the basics by taking a holistic approach to the client relationship and simplifying the client experience.

This is easier said than done, however, as banks are coping with a combination of manual processes, inflexible systems, siloed business operations and product offerings that are more complex than ever. Together, these challenges add up to significant revenue leakage, often in the range of 5 to 10 percent of annual revenues. This is unrealized revenue that banks could be collecting right now.

Introducing Product and Pricing Lifecycle Management, or PPLM. By shifting from a product-centric approach to a customer-centric approach, PPLM is transforming the way banks manage products, pricing, loyalty and billing.

What is Product and Pricing Lifecycle Management

PPLM is a methodology for the managed evolution of relationship banking. In practice, PPLM is all about transparency, shedding light on an otherwise opaque process – the entire product and pricing lifecycle. At Zafin, we look at PPLM as a continuous journey, streamlining bank processes from price quotes and contract management to onboarding, implementation and billing.

With PPLM, banks finally have an enterprise-wide strategic framework they can use to narrow in on the underlying driver of revenue enhancement: happy, profitable customers. PPLM is really about harnessing the power within a bank’s data warehouse and making it usable, reportable and beneficial. To this end, PPLM represents a tangible opportunity for a bank to create a competitive relationship banking advantage.

Banks use PPLM to manage products and pricing effectively:

  • Based on the entire value of a customer’s relationship with the bank (Entire customer relationship)
  • Across geographies (Global)
  • Across business units and lines of business (Across business units)
  • Across an omnichannel environment (Omnichannel)
  • With a focus on driving customer loyalty (Focus on loyalty)

About miRevenue

As part of our mission, Zafin is transforming the way banks manage products, pricing and billing across the entire client relationship. Our flexible software suite, miRevenue, has been designed at every step with a complete focus on enabling banks to deliver sustainable revenue enhancement to their targeted business needs. miRevenue has been delivering product and pricing innovations for clients since 2005.

Today, miRevenue goes beyond relationship banking, which is composed of basic relationship pricing and consolidated billing functionality. miRevenue fulfills the function of a Product and Pricing Lifecycle Management platform, which requires additional functionalities that banks need in the areas of product management, profitability simulation, and offer management and onboarding.

Six Components of miRevenue – Zafin’s Product and Pricing Lifecycle Management Solution

miRevenue is comprised of six flexible modules, each of which can be deployed independently or work in concert with others. Collectively, miRevenue’s modules represent a holistic product management control panel that integrates seamlessly with core systems and other data feeds to support complete Product and Pricing Lifecycle Management.

miCatalog acts as a central product repository – a “single point of truth” for features, standard pricing, relationship pricing and exception pricing – to support a more holistic, needs-based sales paradigm.

miPricing is a comprehensive relationship based pricing engine. As a flexible, full-service pricing tool for standard and exception-based pricing, miPricing can receive any data input and produce outputs that enable pricing models based on the entire client relationship.

miEarnings delivers “what if?” simulation and reporting capabilities. With miEarnings, Product Managers can proactively test the impact of new product pricing strategies on segment revenues, costs and profitability prior to launch.

miOffering streamlines offer management by providing the ability to create new pricing proposals and offers for clients. With miOffering, Relationship Managers can simulate pricing models and analyze the profitability of new offers prior to extending them to clients.

miLoyalty provides a single platform to enable enterprise-wide loyalty management for banks. Relationship Managers can roll out reward, benefit and loyalty programs, creating compelling offers to attract and retain clients. miLoyalty is used to incentivize desired behaviour and encourage growth in wallet share.

miBilling provides banks with the ability to customize and automate client invoicing and billing. As a comprehensive relationship billing solution for banks, miBilling provides flexibility with respect to billing cycles, presentment, and timing, allowing full customization of billing and invoicing to suit the relationship.

About Zafin

Zafin is an award-winning provider of relationship banking software solutions to the financial services industry. As the market leader in relationship banking for Retail, Corporate, Wealth Management, and Correspondent Banking, Zafin is transforming the way banks manage products, pricing and billing across the entire client relationship.

Our flexible software suite, miRevenue, is a complete Product & Pricing Lifecycle Management (PPLM) platform – a “start-to-finish” view of the way banks bring products to market quickly and easily with a focus on revenue enhancement.

Our global client base includes many of the world’s largest and most respected tier-1 banks, all of whom are referenceable. With a growing presence worldwide, miRevenue routinely generates 100% ROI in under 12 months.

Zafin is privately owned and operates out of multiple global locations, including North America, Europe, Middle East, Africa and Asia-Pacific.

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