The tougher competitive situation and the resulting erosion of margins has increased the importance of correctly priced bank and insurance products. However, sales managers often report margins that the treasury cannot realize. As a result, the front office presents good results, but they are not reflected in the income statement at overall bank level. This can result in serious management errors relating to product and pricing policy. zeb/ helps banks and insurance providers to prevent price calculation mistakes and to consistently price their products.
zeb/ consults with you to develop a methodically coherent and implementable reference interest framework for existing and innovative customer products. One focus of consulting activities is the separation of sales and treasury income in the income statement according to the market rate method, both from a present value and a periodical perspective. In order for this to be successful, the managing board, controlling, sales and treasury departments have to cooperate in an inter-departmental project.
Our consulting services:
- We assure the quality of the selected parameters, the method and the process scenarios for the relevant customer transactions. To do this, we provide comprehensive empirical and comparative values.
- We develop advanced processes for the cause-oriented pricing and scheduling of variable customer products.
- We develop strategies for structured products and evaluate implied option rights in customer products.