Comments on: Enterprise Decision Management: Automating and improving pricing in banking http://thebankwatch.com/2006/10/26/enterprise-decision-management-automating-and-improving-pricing-in-banking/ Tracking the evolution of financial institutions Mon, 13 Feb 2012 00:48:52 +0000 hourly 1 http://wordpress.com/ By: Colin http://thebankwatch.com/2006/10/26/enterprise-decision-management-automating-and-improving-pricing-in-banking/#comment-2778 Thu, 26 Oct 2006 21:26:51 +0000 http://bankwatch.wordpress.com/2006/10/26/enterprise-decision-management-automating-and-improving-pricing-in-banking/#comment-2778 I tend to agree. We can talk about differentiation, and value add, but the reality probably is that customers primarily think of buying a home, and secondarily of getting a mortgage.

]]> By: Dan http://thebankwatch.com/2006/10/26/enterprise-decision-management-automating-and-improving-pricing-in-banking/#comment-2761 Thu, 26 Oct 2006 14:19:31 +0000 http://bankwatch.wordpress.com/2006/10/26/enterprise-decision-management-automating-and-improving-pricing-in-banking/#comment-2761 Actually, I think mortgages are one of the few products where price is more important than service. People, whether they know it or not, make cost/benefit decisions in their minds when they’re dealing with banks, and in most cases they’re unwilling to switch banks because of a better interest rate on chequing accounts. To a moderate degree they’ll switch because of premium rate savings accounts, but that’s more of an emotional anti-bank response that ING (and others) are good at evoking. But for mortgages, most customers seem willing to put up with abhorrent service if it means keeping their rate a few basis points lower.

As much as it would make our lives as bankers easier, there’s no blanket approach that would work. Some people are price shoppers, others look for premium service. That’s just the way it is. To make it more complicated, the scale between those two extremes changes depending on the product, the value of the product, the economy, etc., etc. We can build all the systems we want to help us make a decision, but in the end it still has to be a judgment call.

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