Crm in banking

WHY BANK NEED CRM ????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 havecontributed to the growth of CRM in the Financial ServicesSector.

Analysis suggests that a 5% increase in customer retentioncan increase profitability by 35% in banking business, 50% ininsurance and brokerage, and 125% in the consumer credit cardmarket.

Private Banks have traditionally viewed themselves asexceedingly'Customer Centric'offering what they believe tobe highly personalized services to the High Net WorthCustomers.

• Traditionally, few people changed their banks unless serious problems occurred.

• Today, financial institutions can no longer rely on thesecommitted relationships or established marketingtechniques to attract and retain customers.

• The Internet revolution

Need for crm• A Relationship-based Marketing approach has the followingbenefits: -

• Over time, retail bank customers tend to increase their holding ofthe other products from across the range of financial products /services available.• Long-term customers are more likely to become a referralsource.• The longer a relationship continues, the better a bank canunderstand the customer.• Customers in long-term relationships are more comfortable withthe service, the organization, methods and procedures.

Private banking and CRM

Private Banks have traditionally viewed themselves asexceedingly 'Customer Centric‘ • They believe in the concept of “The wealthier thecustomers, the more demanding they are

• The first step towards successfully winning, of privatebanking is to understand what customerswants and needsare.

• Their prime focus is to create differentiated customerexperience

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

Crm software applications• As the financial market system is questioned and

people areseeking for alternative way of doing business CRM might beeffective 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• Secure the banks business models

Benefits of Implementing such CRM software applications

Key Benefits of Implementing such CRM software for Banking

• 360-Degree Client View.Manage Leads & Opportunities.Automate Team- and Role-based Processes.Generate Executive Analysis and report Regulatory Compliance & Security.

Examples

state bank of india• Banking Subsidiaries - State Bank of Bikaner and Jaipur(SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore

(SBIr), State Bank of Mysore (SBM), State Bank of Patiala(SBP), State Bank of Saurashtra (SBS) and State Bank ofTravancore (SBT).

• Foreign Subsidiaries - State bank of India International(Mauritius) Ltd.,State Bank of India (California), State Bank ofIndia (Canada) and INMB Bank Ltd, Lagos.• Non- banking Subsidiaries - SBI Capital Markets Ltd(SBICAP), SBI Funds Management Pvt Ltd (SBI FUNDS), SBI

DFHI Ltd (SBI DFHI), SBI Factors and Commercial ServicesPvt Ltd (SBI FACTORS) and SBI Cards & Payments ServicesPvt. Ltd. (SBICPSL)

• Joint ventures - SBI Life Insurance Company Ltd (SBI LIFE)

• State Bank of India offers its products and services in domains like

Personal Banking.NRI Services.Agriculture.International.Corporate.SME.Domestic Treasury

PUNJAB NATIONAL BANK

• Punjab National Bank (PNB) is the second largest government owned commercial bank in India.

• It has more than 3.5 crore customers.• It has one of the largest branch networks in India.

The bank's assets for financial year 2007 were about US$60 billion.

• It has introduced Money Gram remittance service in

Products and Services

• Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep,

PNB Vidyarthi SF Account, PNB Mitra SF.• Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer.• Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam

Account,Mahabachat Schemes, Multi Benefit Deposit.• Scheme Credit Schemes - Flexible Housing Loan, Car Finanace, Personal Loan, Credit Cards.• Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers

Welfare Trust.• Corporate Banking - Gold Card scheme for exporters, EXIM finance.• Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB

Pragati Udhami, PNB Vikas Udhami

ALLAHABAD BANK

• In April 24, 1865, the Bank was founded at the confluence city of Allahabad by a group of Europeans.

• In October, 1989, United Industrial Bank Ltd. merged with Allahabad Bank.

• In February, 2007, the Bank opened its first overseas branch at Hong Kong.• In March 2007, bank's business crossed Rs.1,00,000 crores mark.

SERVICES

All Ayushman Bima YojanaCash Management ServicesDepository ServicesVisa Cum Debit Card ServicesReal Time Gross SettlementNational Electronic Funds TransferGold Card Scheme For Exporters.Charter for MSME'sGovernment BusinessRegional MSME care centers

UNION BANK OF INDIA

• Union Bank of India was inaugurated by theFather of the Nation, Mahatama Gandhi, onNovember 11, 1919.

• It cater to all the sectors of the society, be itagriculture, industry, trade and commerce,services or infrastructure and rendering services,educational, housing and trade sector.

Services• Atm Banking

Tele Banking• Online Demat Trading

Cash Management ServicesMutual FundsRailway Tickets Booking8% Tax Saving BondsPublic Provident Fund (PPF)Direct Tax CollectionCentral Excise and Service Tax

Collection ServicesSpecial Savings Schemes for Senior

DepositsAccountsLoansCardsInsuranceCash Management ServiceMutual FundsDematATMsE Banking Or OnlineBankingRemittance ServiceBill Payment ServiceTax Payment Service