Currently residing in Coral Gables, Florida, Carl Wolf has been a banker and financial services professional for the past 41 years. He began to publish online articles about his profession in 2009. Wolf holds an associate degree from Los Angeles City College and a certificate in international banking.
CRM & the Banking Industry
Customer Relationship Management (CRM) helps banks to identify, attract and retain the best and most profitable customer relationships. Banks use technology to develop insights as to the types of products and services that customers are most drawn to and the level of satisfaction that they expect. A good CRM system will allow a bank to perform segmentation analysis of its customer base for purposes of understanding its demographics, behavior and attitudes.
* The significance of CRM to a bank is immense because it serves as a plan for future growth. The CRM system should serve as the method used by a bank to gain insight into their existing and future customer base. It allows the bank to measure the amount of customer business that already exists along with the products and services that need to be offered in order to retain customers. For example, if a current customer maintains his large investment portfolio with a broker dealer, the future value of that customer to the bank is quite great if the customer can be convinced to move his holdings to the bank. 2. Function
* The functions of CRM permit a bank to concentrate marketing efforts upon specific identifiable needs. The functions contained within the CRM system must allow the bank to formulate its overall marketing and business strategy plan. This function is based upon calculations performed by the CRM platform that produces profitability by asset and liability type followed by the complete drill down to all basic components such as profitability from deposits and loans. It should also serve as an indicator of the type of business that should be pursued based upon customer needs.
* The features of the bank CRM system should be flexible and allow the user the opportunity to explore existing and potential relationships. The full or partial features of the CRM platform by level of responsibility should be available to all marketing staff, management and any other sales related area of the bank. The monitor screens for these staff members should indicate customers by bank officer, business transactions, total and itemized profitability, contact information and customer profile data, to name a few. The system should also provide "what if" scenarios that allow marketing staff the opportunity to develop personalized business plans for each customer. The CRM system provides transparency within the bank.
* The development and upkeep of CRM systems must be centralized and monitored for changes. The CRM system of a bank must be constantly monitored for proper coding, business types, income and cost allocations along with rate analysis. For example, if the bank enters into a new line of business such as insurance, the CRM system must be updated and changed for the inclusion of a new business line along with all of the associated information necessary for functionality. Also, the establishment of new accounts and customers must be properly verified for the coding that is entered into the system. The CRM system is as good as its upkeep. 5. Potential
* The future potential of CRM is geared toward the use of real time on line usage of customer information. The future potential of CRM systems for banks will be based upon technological advances that allow for the use of real time data. For example, when customers use on line bill paying and charge cards, banks are able to view the life style and spending habits of their customers. This insight...