CRM IN BANKING INDUSTRY

the primary focal point is placed on the customer. If a company develops better customer relationships. it also improves business processes as well as its profits.Definition of CRM y Customer Relationship Marketing is a practice that encompasses all marketing activities directed toward establishing. developing. . y Customer Relationship Management (CRM) as the name suggests. The key objective is to increase customer value over time by increasing customer loyalty. The focus of relationship marketing is on developing long-term relationships and improving corporate performance through customer loyalty and customer retention. and maintaining successful customer relationships.

draft or otherwise. can be a banker who does not: y Conduct Current Accounts y Pays cheques drawn on himself y Collects cheques for his customers. ³No one and no body. Paget in Law of Banking states. corporate or otherwise. Negotiable Instrument Act . of deposits from the public.Definition of bank y The accepting for the purpose of lending or investment. y A bank is therefore ³Any company that transacts the business of banking in India´. y Dr. (Banking Regulation Act). repayable on demand or otherwise and withdrawal by cheques.

as the name would suggest. providing car loans etc. issuing credit cards.INTRODUTION OF ICICI BANK y Founded in 1955 as Industrial Credit and Investment Corporation of India. The experiment was so successful that ICICI merged into ICICI Bank and this "reverse merger" happened in 2002. . y ICICI Bank. ICICI Limited was established by the Government of India in the 1960s as a Financial Institution like Industrial Development Bank of India (IDBI) to finance large industrial projects. y ICICI was set up as a development bank to provide products and services for the corporate segment. y It diversified into the retail segment of the financial markets in the early 1990s while transforming itself into a technology intensive financial service group. undertook normal banking operations like accepting deposits.

470.014 crore (US$ 619 million) in the nine months ended December 31. 3.0%.000 crores and net worth of over Rs.y "ICICI Bank is India's second largest Bank with consolidated total assets of over Rs. including an offshore unit in Mumbai.6% is among the highest levels of capital adequacy in large Indian banks and much higher than the regulatory requirement of 9. .³ y ICICI Bank now has wholly-owned subsidiaries. branches and representatives offices in 18 countries. The Bank's capital adequacy ratio of 15. 50. ICICI Bank made a profit after tax of Rs. 2008. 4.000 crores.158 crore (over US$ 850 million) in FY2008 and Rs.

HISTORY OF ICICI BANK y 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank. 1943). y 2003: ICICI opened subsidiaries in Canada and the United Kingdom (UK). ICICI Personal Financial Services Limited and ICICI Capital Services Limited. and had acquired Chettinad Mercantile Bank (est. . the Government of India and representatives of Indian industry. y 2001: ICICI acquired Bank of Madura(est. 1933) and Illanji Bank (established 1904) in the 1960s. into ICICI Bank. Bank of Madura was a Chettiar bank.It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai. with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. y 2002:The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI.

Sangli Bank had been founded in 1916 and was particularly strong in rural areas. in Maharashtra State. and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. ICICI established a branch in Dubai International Financial Centre and in Hong Kong. 2005: ICICI acquired Investitsionno-Kreditny Bank (IKB). 2008 The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. in Belgium. a Russia bank with about US$4mn in assets. head office in Balabanovo in the Kaluga region. and which had 158 branches in Maharashtra and another 31 in Karnataka State. India and South Africa. ICICI opened representative offices in Bangkok. Jakarta. . 2006: ICICI Bank UK opened a branch in Antwerp. and Kuala Lumpur. which was headquartered in Sangli.y 2004: ICICI opens a rep office in Bangladesh to tap the extensive trade y y y y between that country. Also. 2007 ICICI amalgamated Sangli Bank.

CRM IN NEW GENERATION PRIVATE BANKS:A CASE OF ICICI BANK Introduction y CRM is an acronym for µCustomer Relationship Management¶. Recently CRM has taken a center stage in the business world with businesses concentrating on saving money and increasing profits by redefining internal processes and procedures. processes. instantly and profitably. metrics. The aim of CRM is to optimize the use of technology and human resources. organizational culture and technology solutions that enhance an organization's ability to see the differences in its present & prospective customers. than it does to court new ones.CRM services consist of the following major segments: y Consulting services y Implementation services y CRM Outsourcing services y Training services . It¶s a set of strategies. track new opportunities to better serve customers and act. on those differences and opportunities. It costs a company dramatically less to retain and grow an existing client.

. y The typical components of a CRM strategy at ICICI are as follows: y Understand and differentiate: Understanding customers is important in order to develop a sound relationship with them. Its philosophy focuses on each and every customer¶s satisfaction. purchase pattern and channel preference. ICICI has always focused on developing channels of service delivery according to customers¶ need and service expectation. y Develop and customize: In a customer centric business environment.CRM AT ICICI BANK y CRM at ICICI Bank involves increased communication between the bank and its present and prospective customers. CRM also helped ICICI in valuation of its customers to understand customer profitability and Customer Life Time Value (CLV). Customer profiling is done in order to understand demographics. the products and processes have to be according to customers¶ needs and preferences.

actionable customer information and employees should be trained on how to use customer information to tailor interactions based on both customer needs and potential customer value. Acquire and Retain: CRM helped ICICI to figure out valuable customers and made it easy to formulate retention strategies for them.y y Interact and Deliver: To foster a strong customer relationship ICICI ensured that all areas of the bank have easy access to relevant. . It also helped it cope up with the change in customer¶s life cycle and offer services accordingly.

sales and service practices y Collection. There are five interrelated areas that were taken care of before implementing CRM: Business Focus Organizational Structure Business Metrics Marketing Focus and Technology The next step in the CRM implementation process was gap analysis which essentially is assessing different loopholes in: y Marketing.IMPLEMENTING CRM AT ICICI BANK y The key to implementing CRM was in understanding organization and y y y y customers in a better way. processing and deployment of customer information y Distribution and operations effectiveness at customer touch points . capture.

1 2 3 4 5 6 7 8 PARTICULARS Cash payment Receipt of cash For issuance of demand draft Payment of demand drafts Payment of fixed deposit receipts Opening of an account Statement of accounts (request for duplicate) Collection of cheques Local Outstation TIME TAKEN Up to 15 minutes Up to 15 minutes Up to 10 minutes Up to 15 minutes 20 to 25 minutes 25 to 30 minutes Within 3 working days Normally within 4 days Normally within 21 days .BENCHMARK/RESULTS Time-Norms for Various Banking Transactions SR.NO.

1 4.11 0.76 3.86 0.Private Banks Sr.45 4.79 3.48 3.07 3.Deployment of CRM Best Practices.88 1.06 .24 Mean Std.02 1.63 0.No Name of Bank 1 2 3 4 5 6 7 8 ICICI Bank HDFC Bank Kotak Mahindra Bank UTI Bank IndusInd Bank ING Vyasa Bank Centurian Bank of Punjab Federal Bank Type NPB NPB NPB NPB NPB OPB NPB OPB Mean 4.78 0.41 4.64 1. Dev 0.

we see that a focused and customer centric approach helped ICICI Bank become No 2 bank in India (till recently.CONCLUSION y Thus. Its multi-pronged approach towards managing customer relationship is paying dividends constantly and as a result we see millions of happy satisfied customers determined to make it one of the most successful banks in India. . ICICI has used CRM not only as a tool but also as a strategy to gain competitive advantage over other new generation private banks. It has invested a lot in ICT and spared no pains in giving best to the customers. as PNB has taken over it as the No 2 bank in India now).

PRESENTED BY: y SHIVAM DUBEY y SHRAVAN SINGH y RAHUL SHUKLA y PAWAN SINGH y GAURAV PANDEY y HITESH HEGDE y AJAY DUBEY : : : : : : : 5986 5989 6001 6002 6007 6008 6009 .

THANK YOU .

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