Pricing mechanism of banking products

Abstract

The pricing problem of banking services is quite versatile and requires resolving a number of issues. In the context of a competitive banking environment and the expansion of the range of banking services, it becomes necessary to find the most effective mechanisms for making price offers. As a rule, the customer is interested not simply in the banking service, which is available in almost any second-tier bank, but in high quality and affordability. Based on the synthesis of the quality management process of banking services and the pricing process, this article proposes a model for setting prices for banking products and services with regard to their quality. The starting point for the research was the works of domestic and foreign authors on the essence of banking marketing, the relationship between the price of the banking product and its quality, and the problem of choosing possible quality assessment methods by examining a bank credit. The authors’ model of an algorithm for finding the price/quality ratio of the banking service is offered, which gives a step-by-step description of the process of assessing the characteristics of the banking service. The article shows what opportunities are opened for the bank subject to the assessment of the price/quality ratio of the banking service.