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5 Winning Practices for Banks with Banking CRM to Lead the Global Economy

In today’s dynamic and interconnected financial landscape, the banking industry stands as a critical pillar of global economic stability. The adage that if the banking sector “sneezes,” the global economy could “catch flu” underscores the immense influence and responsibility banks bear. Thus, it becomes increasingly imperative for banks to cultivate strategies that position them as frontrunners in the global economy. To excel in this race, banks must harness the formidable capabilities of banking CRM, a powerful tool.

What can bankers do to achieve superior margins, cost efficiency and superior asset quality through CRM in banking? Let’s delve into the five winning practices for banks with banking CRM.

1. Superior digital customer engagement powered with AI

CRM in banking delivers a holistic customer 360 degree view that tracks customer transactions, purchase patterns, current cases, etc, in a single window. Quick action links with straight through processing can enable relationship managers to deliver instant gratification to customers for routine queries and request. AI with machine learning applied on customer data can give guided next best actions that deliver improved customer service and engagement.

Consider a scenario where a customer contacts their bank’s customer service to inquire about a recent transaction. With a robust banking CRM, the customer service representative can instantly access the customer’s transaction history, identify the issue, and resolve it promptly. AI-driven chatbots can also be employed to handle routine queries 24/7, providing customers with immediate assistance.

2. Pricing excellence backed by analytics

With a banking CRM, bankers can identify and capitalize better, effective pricing opportunities for their financial products. They can leverage advanced analytics on customer profile and competition intelligence on a drilled down, granular level. Effective pricing can prevent revenue and customer leakage.

If a bank wants to launch a new credit card product, by utilizing their CRM’s analytics, they can study customer profiles and spending habits. This data-driven approach allows them to determine the optimal interest rates, annual fees, and rewards structure for the card, ensuring it aligns with customer preferences while maximizing profitability.

3. Tighter risk management

How banks control risk can be a great differentiator between winning and failure. Accurate risk assessment can help banks make the right decisions quickly. They can also streamline processes with faster turnaround times and also handle large volumes. Tighter risk control will help banks with better asset quality and capture more customers with higher credit quality.

In the wake of an economic downturn, a bank needs to assess the risk associated with its loan portfolio. By leveraging their banking CRM’s data analytics and risk assessment tools, the bank can quickly identify high-risk loans and take proactive measures to mitigate potential losses. This results in a stronger balance sheet and improved asset quality.

4. Best in class customer segmentation

A banking CRM, with its powerful analytics will allow banks to have customer centric segmentation with personalized value propositions across products, service and channels. Such targeted segmentation can empower bankers to embrace agile practices and eliminate silos. They can also quickly reconfigure marketing campaigns without compromising on convenience, value and speed.

A bank wants to roll out a targeted marketing campaign for its mortgage products. With banking CRM-driven customer segmentation, they can categorize customers based on factors like income, credit score, and life stage. This enables them to create personalized marketing messages that resonate with each segment, increasing the likelihood of conversion.

5. Higher performance management

Winning banks have a very high revenue to cost ratios, thanks to a very productive sales workforce. Effective performance management modelers in CRM for banks can act as a catalyst to the overall sales process. Such modelers helps in keeping a track of the previous set targets vs achieved numbers for further sales forecasting.

Banking CRM provides a real time report tracking in order to have performance review by analyzing the implemented sales strategies with their outcomes, improvements if required resulting in exceeding the set targets.

To boost sales productivity, banks uses CRM solutions for banking to set individual sales targets for relationship managers. Throughout the year, the CRM tracks each manager’s progress, providing real-time feedback on their performance. Managers can use this data to adjust their strategies, resulting in a more efficient and goal-oriented sales team.

With the right performance modeler powered by banking crm, bankers can achieve high revenue-to-cost ratios per RM.

Analytical-driven strategic CRM implementation in banking can prove to be an essential differentiator for winning banks. As the banking industry continues to evolve in a rapidly changing landscape, CRM will play an increasingly vital role in helping banks not only survive but thrive. With superior digital customer engagement, pricing excellence, tighter risk management, best-in-class customer segmentation, and higher performance management, banks can position themselves as leaders in the global economy and continue to provide the stability and services that the world relies on.