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Modern Banking Calls for CRM in Financial Services




    Few industries have been changed by technology as much as financial services. Everything from everyday banking to mortgages and loans to credit cards has been democratized by technology and software. Over the last thirty years, people went from waiting in line to cash a check or meeting with a bank officer to direct deposit and applying for a mortgage on their phone. 

    The changes in banking are most noticeable for customers and clients, but banks and other financial institutions have also been affected by these innovations. If you happen to go into a bank these days, you’ll notice that there are far fewer tellers and most employees will direct you to machines for simple transactions like deposits and withdrawals. One of the main changes that you may not have noticed is in how banks use software like Customer Relationship Management (CRM) systems. Nothing has been as transformative to modern banking as the adoption of CRM in Financial Services

    One of the biggest changes financial institutions have had to navigate is the fractured nature of the business. Back in the day, people would do all their business with one bank. Now, people are all over the place with their financial needs. They may have good old-fashioned savings account with one bank, a mortgage with another, and maybe two or three credit cards with that many more. CRM banking software helps financial institutions keep track of all this activity on one platform. 

    These software systems help banks and financial institutions in four other ways:

  1. Data. Having a client’s information on one platform helps a bank use that data to engage a customer about new products and services. The data helps financial institutions understand their customers’ habits and preferences to align their products with their needs. Even if your customer is doing business with several other institutions, your company can see where you can approach this client for more business. 
  2. Customer retention. Previously, banks relied on customer loyalty built up over the span of years and in some cases decades. In modern banking, this has become more and more rare. Now, CRM banking software is necessary to build and maintain lasting relationships through data analytics. Offering a client something like a new credit card via a marketing email goes further than offering a piece of candy at the teller window.
  3. Quicker processing. CRM software can speed up the processes by which a client accesses a bank’s services. This is the crux of something like applying for a mortgage on your phone. The software enables a bank to evaluate the client faster than ever and approve or deny an application. 

Eliminating redundancy. There is nothing more annoying for a customer than receiving multiple calls or emails regarding the same query. In fact, you are liable to drive a customer to another bank if you keep calling about a credit card they applied for months ago. CRM helps banks keep closer tabs on which customers have been contacted and the outcome of those interactions. This saves the institution time and money, and may even help them retain a customer. 


This article was written by CRM NEXT for on .

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