Price Optimization for Banking, 2007
Authored by Richard De Lotto, Principal Analyst, Banking at Gartner

"Price optimization is often evaluated in the context of building broader customer relationships, and pricing on the basis of that total relationship. But price optimization - and the resulting increase in profits that results - is a good thing in itself, and should be pursued (even tactically at the product or line-of-business [LOB] level) almost regardless of any other future enterprise-wide strategic consideration. Forgone profits cannot be regained: Pilot projects to test the suitability of price optimization in a particular situation should be started as soon as possible. "

-Richard De Lotto
Principal Analyst, Banking at Gartner

Request a complimentary copy of the Gartner Research

In this research, Gartner includes the following:

• Price optimization, with its resulting increase in profits, is a good thing in itself and should be pursued almost regardless of other future strategic considerations.
• Price optimization technology is an essential underpinning for the dynamic pricing model and the emerging commensurate value relationship strategies.
• Adoption - even consideration - of price optimization technology by banks is closely held information.