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Unlocking the Power of Pricing

Tapping into a 10-25 BPs revenue opportunity

Why Pricing and Realization Improvements

Should Be a 2023 Priority


  • Now is a good time to prioritize pricing improvements

  • There is no market price for investment management and trust services

  • Many firms’ fees are too low

  • Firms with higher stated fees realize 10-25 BPs more in incremental revenue than those with low fees

  • There is no evidence of a sales penalty for firms with higher fees

  • Clients are more service sensitive than price sensitive

  • Uncertain and volatile markets are periods when clients value your services most

  • Firms that maintain low- or mid-level fees are disadvantaged and should reevaluate their positioning

This white paper explores whether banks and trust companies are leaving money on the table by aiming for the “market middle” when setting fees. Faced with rising compensation expenses and a challenging revenue environment, our view is that firms should reassess the effectiveness of common pricing and discounting practices.  Key Takeaways from our research include:

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"Higher stated fees necessarily mean a larger potential revenue pool.

They don’t necessarily mean that high-fee firms earn a smaller share of that pool."

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