Introduction to Pricing in AA
Pricing is part of the Retail Banking suite of products.
AA provides various pricing methods for financial institutions to attract and retain customers. It offers Preferential Pricing based on the relationship a customer maintains with the bank or the channels through which the customer accesses and transacts on their accounts.
Preferential Pricing comes in various formats. These can be condensed into six main pricing strategies:
- Regional Pricing
- Channel Pricing
- Household Pricing
- Relationship Pricing
- Package Pricing
- Promotional Pricing
These strategies can be used independently of each other or in combination, depending on each use case.
Illustrating Model Parameters
The model parameter for Pricing in AA is explained below.
Property Class
The Product Conditions of a Property Class are evaluated to bring out the features of the Property Class. The values in the Product Condition are made default in an arrangement during its creation. The negotiability or default values and other restrictions are also defined in the Product Condition. These Product Conditions along with the properties derived from the Property Classes are grouped together to build the products.
The Product Conditions are dated and some of them have currency as part of their ID. When the currency forms part of the Product Condition ID, then the user has to create different conditions for each currency in which the product is available. When a new condition is created or an existing condition is amended, the user has to proof and publish the product to which the condition is linked
Model parameters consists of:
Activity API
This Property Class is used to define properties having more than one routine that has to be merged from different product levels. If three levels of products are defined, this condition can be used to take all relevant routines from all the three levels so that all conditions and calculations are taken into account.
Activity Messaging
This Property Class links the soft delivery module to the arrangement architecture. Messages are sent based on the role and activity performed on an arrangement. This record allows either specific activities or activity classes to be defined and linked to the EB.ADVICES records.
Activity Presentation
This is a non-mandatory Property Class, that allows to define versions used for various properties during arrangement activities. The versions used can be defined at Property Class, Property and Activity levels.
Eligibility
This Property Class is used to evaluate the eligibility of a customer for a specific product based on a set of rules. In Temenos Transact, the EB.CONTEXT has to be created first. Based on this, the rules are defined using the rules engine. Once these rules are validated, the EB.RULES.VERSION and EB.RULES are created in Temenos Transact.
Preferential Pricing
This Property Class allows the user to configure the preferential pricing adjustments that have to be made to financial arrangement for customers who have a certain relationship with the bank.
Preferential Pricing FX
This Property Class allows the user to to hold information about required exchange rates and settlement accounts.
Illustrating Model Products
The module allows the user to create Loyalty Products, Valued Customer and Internal FX using the AA framework under the Relationship Pricing Product Line
|
S.No |
Product Name |
Product Attributes |
|---|---|---|
|
1 |
Loyalty Products |
Loyalty Pricing Product |
|
2 |
Internal FX |
Internal FX Product |
|
3 |
Valued Customer |
Valued Customer |
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