Why Annual Repricing Is Broken and How to Fix It

Imagine this: It’s Q4, and your treasury management team is neck-deep in spreadsheets, chasing down usage reports, pulling pricing data from a tangle of disconnected systems, and debating whether the wire fees from 2018 still make sense. Everyone knows repricing is overdue, but no one has the time, clarity, or tools to do it right. It’s a scramble—and a stress test. Weeks stretch into months, the window to act closes, and what should be a strategic pricing refresh becomes a tactical exercise in treading water.

Done right, though, annual repricing can be a powerful performance lever. Institutions that approach repricing with strategy, precision, and transparency can drive significant gains in profitability, operational efficiency, and client satisfaction. Well-executed repricing helps banks match service value to pricing more accurately, reduce revenue leakage, reward loyal clients appropriately, and create a clear, defensible rationale for pricing decisions. In competitive markets, it becomes a differentiator—a way to align pricing with customer needs while safeguarding margin.

What is annual repricing?

At its core, annual repricing is the process financial institutions use to adjust the pricing of their treasury management services. Think of it as a yearly check-up on the fees they charge business clients for everything from wire transfers and ACH to fraud protection services. The goal is to ensure that prices remain aligned with market conditions, internal cost structures, and strategic goals.

In theory, it’s a sound approach. Repricing allows banks to maintain margin, manage client profitability, and stay competitive. But in practice, this “annual” process is often manual, time-consuming, and riddled with complexity.

Why is the repricing process broken?

For most financial institutions, the current repricing process is outdated and inefficient. The biggest culprit? Manual workflows and data silos. Teams often pull pricing data from multiple disconnected systems, analyze it in spreadsheets, and rely on tribal knowledge to make decisions. This results in a tedious and error-prone process that can take months to complete.

Some of the key challenges include:

• Lack of centralized data: Institutions often don’t have a single source of truth for product pricing, customer profitability, and usage metrics. This fragmentation leads to blind spots and missed opportunities
• Time and resource drain: The manual nature of the process demands significant time from product, finance, and relationship teams. The longer the process takes, the less agility the institution has to respond to market shifts
• Client experience risk: Poor execution of repricing can frustrate customers, especially if changes appear arbitrary or are poorly communicated
• Inconsistent outcomes: Without automation and clear strategy, pricing adjustments may lack uniformity across regions or relationship managers, creating internal friction and external confusion

A 2023 survey of midsize U.S. banks found that 63% of institutions take longer than 90 days to complete annual repricing. More than half cited “lack of reliable data” and “manual processes” as their top two obstacles.

Simply put, the traditional approach to annual repricing no longer supports the pace or precision today’s financial institutions need.

There’s a better way

Modern technology offers a smarter way to approach repricing. By centralizing data, automating workflows, and enabling more strategic decision-making, institutions can turn a burdensome annual task into a nimble, continuous process that drives profitability and enhances client relationships.

Here’s how technology can help:

Centralized data platforms

Implementing unified data solutions brings product pricing, account analysis, service usage, and client profitability into a single view. For example, one regional bank in the Midwest used an internal data warehouse to consolidate its treasury management data across 12 systems. The result: Pricing teams could access all relevant information in minutes rather than days, improving speed and confidence in decision-making.

Automated analytics and reporting

Advanced analytics tools can surface actionable insights, such as accounts that are underpriced or services that are underutilized. A large commercial bank used pattern recognition to identify clients who hadn’t been repriced in over five years—and captured $1.2 million in new annual revenue by adjusting those accounts alone.
Workflow automation: By automating approval flows and version control, institutions reduce errors and streamline collaboration across departments. In one example, a southeastern bank reduced its repricing process timeline by 40% by using rule-based workflows to route pricing proposals for approval.

Scenario modeling and forecasting

 Tools that allow banks to model pricing changes and forecast their impact help teams evaluate trade-offs before going live. A midsize financial institution modeled the impact of raising fraud protection fees across segments and discovered that small adjustments could increase revenue by 6% without impacting churn.

Customer communication tools

Technology can also improve how pricing changes are communicated to clients. A Texas-based bank built a communication playbook and digital notification system, which led to a 25% improvement in client satisfaction scores during repricing periods.

Role-based access and audit trails

Built-in governance features ensure pricing changes are tracked, reviewed, and auditable—essential for compliance and internal accountability. Institutions subject to OCC and FDIC reviews reported fewer findings and smoother audits after implementing role-based systems.

Instead of seeing repricing as a once-a-year ordeal, FIs can evolve toward dynamic pricing strategies that are data-driven, transparent, and scalable. With better visibility, increased speed, and fewer surprises, financial institutions can move from reactive adjustments to proactive profitability management—unlocking greater value for both the institution and the client.

Read more about Q2 solutions that can help ease pricing strain and build overall relationship profitability, and listen to the related podcast on The Purposeful Banker.