The BGH ruling on the inadmissibility of automatic amendments to terms and conditions to the detriment of customers has hit the banking industry like a bomb. This is because it means that tacit fee increases are no longer so easily possible. Until then, that had been the standard way of raising prices. Considering that this mechanism is mainly based on customer lethargy, it is anything but innovative. On the contrary, it is sweeping and lumps all customers together. And it can only be used every few years, even if it were allowed.
We implement a much better solution with our banking partners using “Dynamic Pricing”. Each customer and each service is priced individually depending on the current customer situation and behavior:
- The usual price tables are only used for the initial classification of customer groups and services.
- Refunds or surcharges are then applied depending on the customer situation and customer behavior.
- Changes to general terms and conditions to enforce price increases are superfluous.
- Compared to previous pricing mechanisms, the revenue per customer and product can be precisely controlled.
- There is even additional revenue: frequent use and bundling generate more additional revenue than dynamic refunds cost.
The whole thing can be implemented without any major IT effort and works for the pricing of all common banking products and services, both for private customers and in the corporate customer segment.