Cost & Fee Analytics has been designed to support front office staff that interact with clients such as Relationship Managers when it comes to the discount negotiation and renewal process. It has been launched at a time when prices are increasingly under review by clients and price negotiation, particularly for high-net worth and ultra-high-net worth clients, has become commonplace. The solution helps to rapidly recognize pricing opportunities and at the same time helps to manage regulations such as MiFID II or FIDLEG which demand better oversight and comprehensive audit trails with regards to client fees.
Using powerful data analytics, the new solution allows institutions to deliver a precise, transparent evaluation of the impact of potential discounts and to report decisions back to clients in a far quicker time as a means to strengthen client relationships and loyalty. It simulates new discounts or product offerings using historic client data with the real price model, all seamlessly integrated into the Avaloq platform.
The foundation of the suite, Avaloq Cost & Fee Management, is a core application supporting the calculation and booking of complex transaction costs and periodic fees. The add-on Cost Profile solution improves the efficiency of the front office by allowing the bank’s operations team to set and change tariffs using a graphical user interface. By further adding the simple to use Fee Designer which enables to model both simple and complex periodic fee runs, the fee implementation efforts can be reduced by as much as 80% which enables Avaloq clients to adopt, test and implement fee adjustments in an agile way.
Martin Greweldinger, Chief Product Officer at Avaloq, said: “Cost & Fee Analytics supports financial institutions to increase transparency within their organization as well as towards end clients. It helps front-line staff to deliver better and faster service to their clients, particularly sophisticated high net worth ones that want bespoke solutions. Underpinning the new solution, as well as our wider Cost & Fee offering components, are granular levels of data and powerful data analytics, which enable banks and wealth managers to rapidly recognize and leverage pricing opportunities.”