A robust Customer Relationship Management system is no longer a luxury — it's a necessity. Financial institutions need more than just basic client data; they require tools that help deepen relationships, personalize services, and drive growth.
The key to success lies in choosing the right CRM platform and customizing it to meet specific business objectives, ultimately driving profitability and client satisfaction.
Decimal Point Analytics offer services in setting up the entire CRM services and has solid background in platforms like Salesforce and Zoho.
In financial services, customer-centricity is crucial for the longevity of businesses. With changing client expectations and technology shifts, financial service providers are under pressure to stay relevant to customers, while being profitable in an intensely competitive landscape.
Especially when it comes to financial services, customers look for personalisation. Being offered the right service at the right time is key to loyalty; they want financial services to fulfil their needs according to their stage of life and desires, whether it is quality of life or financial security. Their expectations are also shaped by increasing digitalization of predominantly manual interactions across all industries, especially the rising set of digital-native financial businesses. Most businesses today are expected to offer high levels of personalisation, quick, secure, hassle-free and streamlined services – otherwise, customers can quickly switch.
Over the years, while customer relationship management (CRM) systems have helped provide digital access and streamline operations to offer faster and easier customer services, the potential for personalisation us as yet unexplored. Building on the vast customer data available in CRM systems, financial services companies can transform customer experience, innovate, stay competitive, and retain customers.
When setting up CRM systems, there are many aspects to consider, the choice of technology platform, the internal automation that the system must bring, but also the external experience that it can enable, and the enhanced personalisation made possible through data.
The expanding role of CRM systems
In the present scenario dominated by online services, CRMs are a necessity, especially for financial services. CRM platforms have established their multi-faceted advantages in consolidating, analysing, and harnessing customer data and bridging the gaps to strengthen engagement and satisfaction levels.
Take, for instance how CRM has enabled online banking, welcomed by the growing community of digital-savvy customers for the ease of access, range of services, and security it brings to financial transactions. Here, banking CRM software has been crucial in unifying customer data across digital channels to offer personalisation as expected. At the same time, they unlock revenue streams and operational improvements that was not previously possible for banks. Not surprisingly, the banking CRM software market has expanded significantly to reach $15.40 billion in 2024.
Deep diving into data behind CRM systems to improve customer relations
To improve customer relations, financial service companies must meet customer expectations, at various touchpoints of their journey. This entails investing in cloud for modernisation of their core systems as well as tools for continuous customer insights at different points of engagement.
Personalisation requires proper segmentation of customers by profile, financial capability, investment preferences etc. Ideally, financial advisors need a unified view of customer data that facilitates deeper, holistic insights and tailored services to their existing customers. This opens up cross-selling and up-selling opportunities that can drive more transactions and revenue streams.
Today, financial service providers must meet the customer wherever they are. Therefore, cross-selling is more than just a momentary and well-timed offer. It is also about gaining deeper insights on customer behavior and preferences to build more meaningful, long-term engagements.
Intent data is crucial here to gauge the customer’s/investor’s interest in the product/service – will help financial advisors be the first to strike with highly relevant and personalized offers. This can be instrumental in building loyalty and trust, besides revenue.
The evolving role of a CRM as the foundation for customer engagement
The scope of CRMs continues to evolve, in tandem with a more data-led approach to maintaining customer relations, and intelligent forecasting abilities based on CRM systems are highly valued. The contribution of a strong CRM in sales conversions and marketing initiatives has become more significant in recent years. Growing beyond their initial role of a unifying customer data base offering traditional customer profiling and contact management, today’s platforms incorporate social CRM, industry-specific CRM for more inclusive profiling. The advent of AI, IoT-based tools have added more sophistication and depth to modern CRM platforms.
Banking CRM solutions can employ AI for improving several areas including
- Credit risk management based on regular monitoring and analysis of various info sources – financial performance, textual analysis of regulatory filings etc.
- Fraud detection and mitigation using algorithms identifying patterns and deviations in transactions
- Automated management of transaction disputes for quicker identification and resolution
Getting the foundation of a CRM right can help build data platforms for the future
While CRMs are a must-have, implementing them can be both challenging and complicated. The key to success is to pick the most appropriate CRM platform and customizing it to suit specific business objectives, ultimately driving profitability and client satisfaction.
Studies indicate typical pain-points such as complex technology/tools integration and platform features not addressing specific needs, poor data quality and management. Insufficient skills and knowledge in internal teams is another area of difficulty faced by traditional institutions such as banks.
These roadblocks must be overcome by two key strategies – the right CRM platform and the right implementation partner.
Why Choose Decimal Point Analytics
At Decimal Point Analytics, we offer unmatched expertise in implementing comprehensive CRM services, backed by a proven track record with platforms like Salesforce and Zoho. Our team is skilled in designing CRM solutions that are tailored to meet the unique demands of financial services, ensuring seamless integration and enhanced customer satisfaction.
With our deep understanding of the financial industry's complexities, we ensure that the right CRM platform is implemented effectively to drive operational efficiency and meet your business objectives.
Let’s connect and explore how we can help elevate your CRM strategy.
