Breakdown of the Role of CRM in BFSI

With the rapid digital transformation in the banking, financial services space and Insurance (BFSI), an average customer is now spoilt for choice. It’s not uncommon for customers to approach multiple banks to meet their various financial needs. Brand loyalty is rare and is usually due to mortgages, loans or other contractual obligations. 

In this anarchy, banks can hope to improve customer retention by undertaking several performance enhancement initiatives. They need the ability to continually analyze customer interactions through various touch points, gather leads, use the insights to further strengthen their customer relationships and even gain new customers. Customer Relationship Management (CRM) is an umbrella term that encompasses all activities that pertain to improving customer confidence. Tweet This!

Advantages of CRM

A CRM system can help banks to provide targeted and timely information and thereby add value to their customers. CRM systems can effectively segment customers and deliver them customized services by acting on dynamic customer information. This enables the banks to build relationships with profitable customers and identify specific products and services that can benefit customers. 

CRM Systems can help by

• Evolving Customer Profiles: CRM can help to automate, sort, score, track, update customer profiles and assign new leads for further action.
• Connecting the Dots: CRM modules can provide a complete picture of all customer interactions, most of them also include social media listening tools that allow you to track and respond to social media sentiment in real-time. 
• Responding Appropriately: CRM can provide timely and discretionary decision support information for management. To implement CRM at financial services firms, two more challenges need to be addressed: security requirements and integration with other banking systems.

Security Considerations for Financial Institutions

Information security and access control is critical for the banks. Some CRM systems are cloud-based, which pose additional issues with data storage locations. Contemporary CRM systems provide very granular role-based security and access control. 

Integrating With Other Allied Systems

Most CRM systems are fully equipped with a variety of robust and mature tools that can easily communicate messages. Today, CRM systems are quickly becoming a central hub for dynamic customer profiling and enhanced marketing. 

Recommended Reads:

1. CRM at the speed of light
2. Connected CRM: Data-Driven, Customer-Centric Strategy
3. CRM: The Foundation of Contemporary Marketing Strategy
4. ROI from CRM: It's about Sales Process, not just technology
5. Do you CRM me?: Guide to Customer Relationship Management

Priyanka Naik ? 2017