Unleashing Financial Services Transformation: 5 Revolutionary Ways CRM Brings Order from Chaos

Transformation drives finance.

Business strategies are driven by significant investments in digital technologies for higher customer engagement & seamless digital experience. Traditional banking is being replaced by paperless documentation, straight through processing, digital chatbots etc. for instant gratification with CRM for banks.

A Shift Towards Paperless Documentation

No more cumbersome stacks of paperwork, no more endless forms to fill out. In today’s digitally transformed financial services sector, the archaic practices of physical documentation are becoming obsolete. The transition towards paperless documentation is one of the most significant and revolutionary changes in the industry. It not only reduces the environmental footprint but also streamlines processes, making life easier for both customers and financial institutions.

Digitization has given birth to secure digital signatures, electronic document storage, and cloud-based record-keeping systems. These innovations have not only minimized the need for physical paperwork but have also enhanced security, reducing the risks associated with lost or tampered documents. As a result, customers can apply for loans, open accounts, and invest in a matter of minutes, all from the comfort of their homes.

The Rise of Digital Chatbots

AI-powered virtual assistants are not just for answering frequently asked questions; they are capable of much more. They can provide personalized financial advice, help customers with account inquiries, and even assist in making investment decisions.

Digital chatbots are available 24/7, providing customers with instant gratification and support whenever they need it. Whether you’re inquiring about your account balance, seeking information about a specific financial product, or requesting assistance with a transaction, chatbots are there to assist, ensuring a seamless and convenient experience.

These chatbots are continuously learning and improving through machine learning, becoming more adept at understanding customer queries and providing accurate responses. This not only enhances customer satisfaction but also allows financial institutions to allocate their human resources to more complex tasks, improving overall operational efficiency.

The Power of Customer Relationship Management (CRM)

Customer Relationship Management (CRM) tools have long been integral to the success of businesses across various sectors, and the financial services industry is no exception. However, the digital transformation has taken CRM to a whole new level in the world of finance.

Today’s CRM systems are equipped with advanced analytics and data-driven insights that empower financial institutions to understand their customers on a deeper level. They can anticipate customer needs, tailor product offerings, and provide highly personalized recommendations. This level of customization not only enhances customer engagement but also fosters loyalty.

Additionally, CRM systems in financial services enable financial institutions to track customer interactions across multiple touchpoints, whether through digital channels, in-person visits, or phone calls. This holistic view of customer interactions helps banks and other financial service providers to provide consistent, high-quality service throughout the customer journey.

Enhanced Security Measures

With the increasing frequency of cyberattacks and data breaches, safeguarding sensitive financial information is of utmost importance.

Financial services have responded with revolutionary security measures, such as biometric authentication (fingerprint and facial recognition), multi-factor authentication (MFA), and blockchain technology. These innovations provide layers of protection, making it extremely difficult for unauthorized individuals to access customer accounts or manipulate financial data.

Furthermore, CRM in financial services are continually evolving. Customers can identify suspicious activities in real-time with advancements in financial service CRM’s AI-powered fraud detection systems. This proactive approach to security ensures that customers can have confidence in the safety of their financial transactions and investments, even in the digital realm.

In this blog, discover the 5 revolutionary digital transformations in financial services.

1. Smart Digital Buying Journeys

Empowering customers with real time visibility on eligibility check. / Auto population by integration with DMS servers, real-time application status check & e-KYC. / Engaging customers with automated self digital buying journeys across multiple touch points.

50% Increase in online customers through self-served portals. – Gartner

2. Real-time AI-driven engagement

Real time assistance through AI driven IVR services for routine customer queries. / On demand chatbot assistance with pre defined solutions through Natural Language Processing (NLP). / Identify processes to automate for maximum operational efficiency.

45% of financial service providers use AI for automated customer engagement. – Gartner

3. Omnichannel Targeted Campaigns

Execute multi wave, multi-regional campaigns in a single workflow. / Powerful lead segmentation with predictive analysis of audience action. / HTML based customizable templates with AI suggested content for drilled down personalization.

65% Higher sales due to personalized campaigns. – Acidaes Research

4. The Era of Straight Through Processing (STP)

Straight Through Processing (STP) is another digital transformation that’s revolutionizing financial services. This automated end-to-end process eliminates the need for manual intervention in financial transactions. It ensures that transactions are executed quickly, accurately, and without errors. STP has become the backbone of efficient payment processing, asset management, and securities trading. Imagine sending money to a friend or paying bills, and the entire process happens seamlessly, making financial transactions quicker and more reliable than ever before. STP not only enhances the speed of transactions but also reduces operational costs, as it requires fewer human resources for transaction handling and validation.

Moreover, the use of artificial intelligence (AI) and machine learning algorithms in STP systems has further elevated their efficiency. These algorithms can detect anomalies, identify potential fraud, and optimize transaction routing, all in real-time. As a result, customers enjoy greater peace of mind, knowing that their financial transactions are processed with utmost accuracy and security.

80% Increase in FTR rate followed by significant error reduction with straight through processing. – Acidaes Research

5. Robo-advisors

AI driven financial analysis with customer portfolio by identifying patterns on saving history, past transactions, customer preference, risk appetite etc. / Investment advisory based on demographics, dynamic financial markets, portfolio analysis etc. / Balancing portfolio through robot advisors with tighter risk control.

According to S&P, assets under management (AUM) by robo-advisors increased from $98bn in 2016 to about $143bn in 2017 and predicts AUM to reach $450bn in 2020. – S&P

As technology continues to advance and evolve, the financial services vertical becomes further tethered to ever evolving technological advancement through artificial intelligence & process automation. It’s becoming harder to live with them alone, but impossible to live without them. That’s where BUSINESSNEXT comes in.