I’ve talked for some time about component based banking but what about component based pricing?
Bank pricing is the most opaque part of the industry, and the part that irritates customers the most. Customers get charged high fees for unauthorised overdrafts as this funds free bank services for those who don’t go overdrawn. Banks focus upon packaged accounts and cross-sell because the core deposit account is their loss leader. It is this area of banking that should undergo the most fundamental change over the next years and it is already happening.