NU Online News Service, July 13, 11:02 a.m. – Manugistics Group, Inc., Rockville, Md., says it has developed versions of its product-pricing optimization software for the financial insurance industry.
Manugistics says that its pricing software can help banks and insurers to offset margin erosion caused by slower market growth, increasing competition, customer price sensitivity and Web-enabled price shopping.
Most financial institutions have developed pricing models to cover risk, financing costs, expense allocation, required return on equity and hedging, but few use customer price sensitivity to optimize pricing to help enhance profitability, Manugistics contends in an announcement. It cites a recent study by the Charted Institute of Bankers that included 25 of the European Union's 30 largest bank and insurance groups, which found that only 58% of the groups' continental European customers, and only 49% of their British customers, clearly generated profits for these companies.
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