Costing and Pricing - Toolkit

As financial institutions become more sophisticated and client-oriented, they start to offer a range of products. To achieve financial viability, managements need to understand their overall cost-structures and income flows on a product-by-product (and often on a branch by-branch) basis. A clear understanding of an institution’s cost structures is essential in designing appropriate prices for pilot testing new products. MicroSave’s Allocation-based Costing and Pricing of Financial Services toolkit allows the financial institutions’ management to:

1. Determine the full-costs of delivering products.
2. Determine the profitability/contribution of the products (including analysis over changes time).
3. Refine cost/profit centres and the institution’s management information systems.
4. Identify hidden-costs (especially at a departmental level).
5. Instil cost-consciousness amongst department managers.
6. Price current/future products.
7. Make informed decisions about selection of products (including cost/benefit and marginal cost analysis).
8. Improve business planning and investment decisions (including which products to market etc.).

Toolkit Download READ FIRST Introduction to Costing and Pricing.pdf Toolkit_Overview_of_Costing_and_Pricing.pdf Costing_and_Pricing_of_Financial_Services Toolkit.pdf