Bank charges calculator system - suboptimal choice problem

Abstract

This paper is focused on the output of the expert system for the retail core banking services to individuals in the Czech Republic. For the last five years the European Union is studying, monitoring and admitting the asymmetry of information on this market and yet no functional design was introduced in practice successfully. In the Czech Republic there is successfully run the project “Bank charges calculator” for the last two years. This system helps to solve mentioned problem of information asymmetry the demand side is affect adversely. Collateral benefit of this project is the data gather and so the demand side of the market can be thoroughly analyzed. There is performed an analysis of the suboptimal choice on the retail core banking services client with activated e-banking. The analysis is testing the hypothesis of suboptimal choice and then sets a confidence interval for the suboptimal choice made by consumers. The single-tail hypothesis that at least 84,14 % of the consumers (presuming normal distribution) use suboptimal product regarding the variable “Price” and variable “Offer contains all services demanded” was tested and confirmed. The total number of analyzed consumers was 9 581. The last part of the paper is dealing with the main presumable causes of this unsatisfactory situation such as product tying, loyalty prices, conditional sale and overall pricing policy and so the tariff opacity that can be solved without the governmental intervention is the price database.