W. Edwards Deming famously said, “Profit in business comes from repeat customers, customers that boast about your product or service and that bring friends with them.” For financial institutions, this principle remains central, but the strategic approach to achieving it is evolving swiftly.
Capitalising on Every Customer Interaction for Profitability
Today, every digital transaction and service touchpoint holds potential revenue if managed effectively. However, financial institutions often leave substantial profit on the table due to:
- Transactions that go unbilled or are underpriced because of outdated, inflexible legacy systems.
- Zero-balance accounts, fee waivers and free services that dilute overall profitability when not strategically managed.
- Static pricing models that fail to recognise the complexity and value of individual customer relationships.
By modernising revenue management practices, banks can unlock significant value already embedded within their day-to-day operations, directly impacting their bottom line.
Modern Revenue Management: Plug Leaks, Offer Personalisation and Drive Growth
Banks can improve revenue performance by:
- Treating every customer interaction as a revenue opportunity – capturing and pricing each service, transaction or value-added feature accurately, so the bank is fairly compensated for the value it provides.
- Using data to tailor pricing and offers – creating targeted propositions and adjusting charges for specific customer segments in real time, improving satisfaction while maximising revenue potential.
- Automating controls to prevent revenue loss – ensuring charges align with agreed services and bundled offers, protecting earned revenue and maintaining compliance.
A modern revenue management platform brings transparency and flexibility needed to optimise income streams while improving customer experience.
Empowering Banks with Composable, Enterprise-Level Revenue Management Capabilities
Modern banking requires pricing and billing to be dynamic, customer-aware and consistent across all products and channels. To achieve this, banks need a composable, enterprise-grade revenue management layer.
With such a layer, banks can:
- Develop dynamic, context-specific pricing and bring innovative offerings to the market faster, securing a competitive advantage.
- Provide transparent, personalised billing, building trust and strengthening long-term relationships.
- Enable new monetisation models such as subscriptions, outcome-based pricing and bundled services, diversifying income while staying compliant and managing high transaction volumes with ease.
- Prevent revenue leakage and maintain strong regulatory compliance across all operations.
A robust revenue management solution must be purpose-built for banking, capable of managing product complexity, real-time transactions, transparent fees and the varied pricing models that define today’s banking environment.
Strategic Revenue Management Transformation
For end-to-end transformation, banks need a holistic revenue management system built on five strategic pillars:
- Revenue Enhancement – Use customer, and product-level pricing capabilities to offer loyalty-based rates, targeted segment offers and relationship-based bundles.
- Revenue Assurance – Capture and collect charges in real time or on schedule, ensuring accurate billing as transactions occur.
- Revenue Leakage Prevention – Apply rule-based controls to enforce client commitments, such as minimum balances or service thresholds, and centrally track missed revenue opportunities.
- Customer Engagement – Deliver personalised offers and unified invoices across multiple products to improve satisfaction and loyalty.
- Operational Efficiency – Replace manual, spreadsheet-based processes with automated business rules, enabling dynamic pricing and faster go-to-market for new offerings.
Strategic Revenue Management in Action: A Case Study
One of India’s largest banks embarked on a multi-phase revenue transformation initiative. The bank wanted to centralise its pricing and billing across its 30+ product lines and various customer segments through a platform that could serve as a horizontal capability spanning the entire enterprise.
Key objective was to consolidate billing into a single platform and ensure no transaction went unpriced, even if the price was zero. The vision also emphasised high scalability, given the massive transaction volumes processed daily and monthly. To support this, the bank leveraged Finacle Revenue Management hub.
The transformation enabled:
- A centralised pricing and billing system for current products and services, addressing revenue loss, unlocking new revenue streams and enhancing operational efficiency.
- Flagship application of the federation layer in bank to enable seamless work with host systems like Core, Loans, WMS etc., and customer-facing applications
- Cloud-native and highly scalable architecture handling 400 million transactions monthly (up to 6,000 transactions per second). Flexible integration framework – files, APIs, etc.
To Conclude
In markets like the Middle East, where regulatory reforms and rapid digital transformation are reshaping the banking landscape, pricing has moved beyond mere back-office functions to become a strategic driver of growth and competitive differentiation. For industry leaders, transforming revenue management capabilities means gaining critical business flexibility, ensuring robust compliance and strengthening monetisation, delivering tangible benefits for both customer experience and the bank’s ultimate profitability.
