As Head of Retail Banking at Ecobank Ghana, with treasury collaboration experience, this workshop covers pricing (10.0) in Ghana’s regulated market, referencing BoG’s interest rate caps and post-DDEP transparency. Use examples like deposit rates during 2022 inflation spikes.

Workshop Introduction
Pricing influences choice despite service quality (12.0). In retail banking, determinants balance profitability and competition (3.0), per financial services pricing (10.2).

Six Determinants of Retail Banking Products Pricing

1. Cost of Funds and Operations: Base price on funding costs (e.g., interbank rates) plus overheads. BoG’s Liquidity Guidelines ensure margins cover risks, e.g., higher loan rates post-cleanup recapitalization.
2. Competitive Landscape: Align with rivals’ rates to retain share (3.5 weaknesses). E.g., Match fintech low-fee transfers, as GCB did for mobile money integration under Act 987.
3. Regulatory Requirements: BoG directives (e.g., disclosure rules) cap fees; non-compliance risks fines. Post-2019, transparent pricing for deposits/mortgages ensures ethical practices.
4. Customer Demand and Elasticity: Sensitive to price changes; low for essentials like savings, high for loans (attitudes to debt 4.4). Segment pricing for loyalty (4.3).
5. Economic Conditions: Inflation/GDP influence; e.g., 2022 hikes raised deposit rates to attract funds amid DDEP. National environment (2.1) guides adjustments.
6. Product Life Cycle and Objectives: Introductory low prices for new products (8.3), higher for mature ones. Branch role (10.3) in local tweaks enhances relevance.

Activities

• Group Exercise: Price a sample loan.
• Case: Analyze Stanbic’s competitive pricing.
• Key Takeaway: Integrate with treasury for compliant, profitable strategies.