Pricing decision-making in retail banking: The Bank Price approach and system

This paper describes the major improvements made to an existing and successful decision support system for pricing decision-making in the retail banking sector, which has led to the development of a new system called Bank Price. After outlining the main features of the UK retail banking sector, it explains the various improvements made in Bank Price as compared with the earlier BS-opt system. Next the paper outlines the key features of the design of the Bank Price system. Finally it presents a real-life example carried out in the U.K. banking sector and, in conclusion, the paper lists the advantages of using the new Bank Price approach in pricing decision-making.