2.2 Components

The main features of this application are:

Default Parameters

This section discusses the setting up of default parameters. Setting up the default parameters involves specifying general parameters for estimating the price. These parameters are inputs to the pricing process. It also includes specifications of default parameters such as the Transfer Pricing Rule and Capital Charge Computation Rule. These parameters are required for estimating the Transfer Pricing and Capital Charge Measures by making a call to respective applications which provide the inputs required for pricing.

Product Parameters

This section discusses the setting up of Product parameters. Setting up the product parameters involves specifying costs and setting target values for risk-adjusted performance measures (RAPM). This is specified for each product-currency combination to carry pricing.

Price Review

The Pricing Review section is where a bank user can configure rules based on which accounts can be reviewed to identify the accounts that need to be re-priced. The rules can be defined based on attributes of customer and account such as age, next re-price date, or profitability parameters.

Offers

This section describes the creation of offers depending on certain parameters and criteria that have been set for the customer. In this section, the bank can manage the offers for a customer by adding, modifying, or deleting any offer.

Carded Rates

This section describes the creation of the carded rates for the bank. The bank can create their own Carded Rates for the customers based on certain eligibility criteria, which can be defined by the user.

Pricing

In this section, the Relationship Manager can add new customers or define the Pricing Definition for the existing customers. The final computation of pricing happens at this stage. The Pricing Definition has the following steps:

• Customer Details
• Deal Details
• Offers
• Price Optimization
• Recommended Price