As Traditional Revenue Streams Dry Up, Leading Financial Providers Must Explore New Pricing Methods

Financial services companies in different markets are facing declining revenue; at the same time, leading providers are exploring opportunities for fresh revenue streams or new ways to position their pricing. When revenue streams change — or start to disappear — banks and other financial providers need to act quickly, taking an outside-in approach to exploring new models. Financial services companies’ pricing methods and revenue streams will fall into one of five categories: traditional fees and net interest margins; referral fees or commissions; subscription pricing; X-as-a-service; and “shared success” pricing. HoneyDue is “working for tips”; Cushion is using a “shared success” pricing method and revenue stream; while Charles Schwab recently launched a subscription service where customers get a wealth of services and advice for one recurring sum.