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  • How CRM can Overcome Challenges in Banking

  • 10/11/2016

  • Micheal Sandor

How CRM can Overcome Challenges in Banking


For a company to succeed in increasing its sales, marketing and customer experience objectives it is essential to have a solid CRM strategy in place. However, in the case of a business that deals with financial services, a few special factors are considered during the implementation of CRM.

In the present age, the customer has many choices when it comes to the banking and financial industry. There is no real brand loyalty unless the customer is under a contractual obligation such as a loan or a mortgage. Most customers have financial services relationships with multiple banks or finance firms. Thus, banks and other firms providing financial services must initiate performance enhancement strategies to retain customers and convert leads to their brand. Performance can be improved by relevant and accessible information that can be quickly acted upon from systems. These systems should be capable of providing and supporting superior customer service and also be able to track, measure and analyze customer data and interactions. This is an ideal example of a CRM system today.

Benefits of CRM in Banking Sector

Having a robust CRM system in place is a good business strategy for banks. It helps in creating brand value, identifying new customers, understanding customer issues and providing timely, relevant and targeted information to customers. A CRM system provides the right kind of tools that segment and deliver the right service at the right time by acting on dynamic customer data. This allows businesses to track customer behaviour and develop strong relationships with valued customers. Businesses can correctly identify certain services and products that are beneficial to specific customers. All activities and their results can be tracked, measured and analyzed through CRM dashboards.

Challenges solved by CRM 

There are mainly 3 challenges faced by banks and financial services companies that a CRM system can solve:

  • Evolving Customer Profiles – Most customers are not loyal to one bank and their circumstances keep changing
  • Connecting the Dots – Identifying and analyzing customer profiles and services as well as marketing initiatives can help in finding opportunities to drive up conversion rates and increase the customer base
  • Responding Appropriately – Create, assign and track action items and measure the outcomes or results

CRM systems are capable of helping banks and companies offering financial services in providing superior customer value, retention and conversions. A few examples are given as follows:

Challenge 1: Evolving Customer Profiles
CRM helps to automate, sort and assign new lead records for further action by company employees and resources. It allows easy implementation of strategies and processes for managing landing pages on the web as well as site visitors. Moreover, a CRM system can score, track and update customer profiles. It can also generate new lead records for further action by other CRM processes and modules.

Challenge 2: Connecting the Dots
CRM-based customer service modules can provide conventional customer service capabilities, which are further improved by providing a full picture of all customer interactions. Creating and managing marketing strategies and pricing initiatives becomes streamlined and organized with CRM. Many CRM systems include social media listening tools. These enable you to track and respond to social media opinions in real-time.

Challenge 3: Responding Appropriately
Dealing with customer issues and troubleshooting them is the top priority for any service industry. A CRM system helps to provide on-time, discretionary decision support information for management and staff to act upon. By providing better levels of customer service, new opportunities for customer conversions can be identified.

Thus we see that CRM is an excellent enterprise tool for tackling the 3 customer-centered challenges that banks and financial institutions face. When implementing a CRM system at banks, two other common challenges need to be taken care of namely security management and integration with other banking/financial systems.


Micheal Sandor

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