The Art and Science of Pricing Financial Services 

Abstract:

This note discusses the pricing concerns from customers’ perspective and the difficulty in understanding the costs associated with the financial services. It highlights three main factors for pricing a product—costs, competition and value. It also underlines the importance of transparency in developing a business and the ways to improve it by ensuring that staff members know the products and services well. The note also points out the role played by regulators in reporting the price of a product and voluntary disclosure of actual pricing to customers by the MFIs. It further considers the factors in pricing loans, savings and e-banking products by the MFIs. Conclusively, it recommends building and developing capacities to perform pricing.

Tags: Transparency, Pricing method, Financial services, Pricing savings, Pricing loans, Pricing electronic banking, BN49, BN 49, MicroSave, Retail banks , Costing and pricing , Product development, Savings, Mobile banking