CUSTOMER RELATIONSHIP

MANAGEMENT (BANKING)
NAME ROLL NO
Tarun 06
Priyanka 11
Nikita 25
Ravi 54
Deepika 56

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CURRENT BANKING SCENARIO IN INDIA
WHY CRM IN BANKING ????

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Consumers largely select their banks based on how
convenient is the location of bank to their homes or offices.

The pressures of competitive and dynamic markets have

contributed to the growth of CRM in the Financial Services
Sector. 

Analysis suggests that a 5% increase in customer retention

can increase profitability by 35% in banking business, 50% in
insurance and brokerage, and 125% in the consumer credit card
market.

Private Banks have traditionally viewed themselves as

exceedingly 'Customer Centric' offering what they believe to
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be highly personalized services to the High Net Worth
Customers.
1. \ Provide better customer service
2. 􀂉 Cross sell products effectively (
3. 􀂉 Help sales staff to close deal faster
4. 􀂉 Simplify marketing and sales processes
5. 􀂉 Discover new customers
6. 􀂉 Increase customer revenues
7. 􀂉 Monitor customer churn

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 EVOLUTION PROCESS OF CRM IN BANKING
FOUR PHASES
I Technology
􀂉 Initially CRM meant automation of processes
􀂉 ROI was meager
II Integration
􀂉 Cross-functional integration supported by Data warehouse etc.
􀂉 Example - Web hits, sales call helped in developing customer needs
􀂉 Predictive modeling through data mining of aggregate of customer
contact experience and corporate knowledge
III Processes
􀂉 Organizations eliminated unnecessary activities to improve quality and
effectiveness of customer service
IV Customer Driven CRM
􀂉 Focus on financial result
􀂉 Finding cost effective alternatives for non-buyers or low margin
customers
􀂃 Not all customers are profitable (but they need not be
excluded – Financial Inclusion)
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CUSTOMER LIFE CYCLE IN BANKING

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 Private banking and CRM

Private Banks have traditionally viewed themselves as

exceedingly 'Customer Centric' .

They believe in the concept of “The wealthier the

customers, the more demanding they are”.

The first step towards successfully winning, of private

banking is to understand what customers wants and needs
are.

Their prime focus is to create differentiated customer

experience. 9
 Customer experience

To be a credible player in the market, a private bank must

be able to deliver this customer experience.

These are widely categorized in three sections they are :

The Basic Customer Experience.

The Segment-Specific Experience.

The Organization-Specific Experience.

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 CRM software

As the financial market system is questioned and people are

seeking for alternative way of doing business CRM might be
effective in the following way:

Communicating with your customers.

Checking unusual movements on your account.

Providing tremendous opportunities to your clients.

Managing customer's questions flow.

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Secure the banks business models .
 Gale Force CRM for Banking

Key Benefits of Implementing such CRM software for

Banking:

360-Degree Client View.

Manage Leads & Opportunities.

Automate Team- and Role-based Processes.

Generate Executive Reports.

Regulatory Compliance & Security.

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EXAMPLES

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HSBC adopted the CRM system in order to maximize customer convenience and
provide anytime, anywhere and anyhow banking.

Traditional Banking
Automatic Machine / Phone Banking
e-Banking
Customer Centered

Strategies Of HSBC In Personal Banking Related To CRM (Allocating

resources in more effective and efficient ways within its internal structure)

Streamlining The Collection Of Data

Segmentation And Targeting Of Potential Customers
Suggestions For Improvement
Technology And Infrastructure Enhancement
Instant Communication Service On The Web
Data Mining Service
Treat Household Customer As A Whole
CRM IMPLEMENTATION BY INFOSYS IN ICICI
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SUGGESTIONS AND RECOMMENDATIONS

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