Fee income is a large share of what an institution earns, and it is under structural pressure from both regulation and competition. The strategic response is well understood. Move away from punitive flat fees and towards pricing that reflects the depth of the relationship.
The obstacle is not strategy. Every institution we speak to already knows what it wants to charge. The obstacle is that the billing layer inside a core banking system was built when products changed once a year, promotional pricing was a rare exception, and a fee schedule was something you printed.
So pricing that the business designed gets simplified down to what the system can do. Waivers become permanent flags because there is no lifecycle. Tier thresholds get approximated because the calculation is not expressible. Every genuinely relationship aware idea becomes a manual process, and manual processes are where revenue quietly leaks.
