5 Benefits That Explain the Importance of CRM in Banking

FEATURED Infographic

Ten Questions to Ask When Choosing a CRM in Banking

Download our infographic for 10 must-ask questions to help guide you in your evaluation of your next CRM platform.

Download the Infographic

Today’s banking customers have their minds on their money and their money on their mobile devices. From prequalifying for a loan via a smartphone to exploring credit card options on a laptop, customers have fully embraced the convenience that the digital age has brought to the banking industry.

But with the ever-expanding number of options available, it’s not uncommon for customers to seek services from more than one bank. A homeowner could have their mortgage through one financial institution, a personal loan through another, and several credit cards through different banks and retail stores.

Because of customer demands and increasing competition, banks need to adopt a modern, customer-focused approach to service, making the importance of a CRM in the banking industry more valuable than ever before.

What is a CRM in the Banking Industry?

Customer relationship management (CRM) is a necessity in any customer-focused industry. For banks, it’s an especially useful tool for meeting sales and marketing goals and exceeding customer expectations.

CRM software is a tailored solution that helps banks implement customer-centric strategies. Under one system, bank tellers and employees can:

  • Store customer data such as contact information, products used, and interactions.
  • Schedule appointments, send personalized emails, and respond to social media posts.
  • Update customer profiles in real time with notes or new information.
  • Visualize, nurture, and manage leads in their sales pipeline.
  • Create reports that analyze customer behavior, marketing campaign performance, and more.

Most notably, the ROI from a CRM speaks for itself. Nucleus Research found that for every dollar spent, a CRM pays back $8.71.

The Business Benefits of Using a Banking CRM

CRMs are important in every industry, but for banking in particular they can help organizations deliver more personalized customer experiences.

According to a global study of financial service customers, Accenture found that 67 percent are willing to provide more information to banks if it means they will receive new benefits and 71 percent said they would use entirely computer-generated support for their banking processes.

Since customers are ready and willing to share their information with their banks, there’s no reason not to implement a CRM that can achieve the following benefits:

1. Leverage a 360-Degree View of Every Customer
A banking CRM is a consolidated system that can integrate with your other banking software programs to provide a single view of every customer account. From making a deposit at an ATM to requesting information about a certain type of loan, every pre-determined action a customer takes can be recorded in your CRM. This makes it quick and easy to gain deeper insights into their habits and personal preferences, which can help you align certain products to their financial goals.

2. Improve Customer Retention
With customers opting for online banking solutions as opposed to in-person experiences, strategizing a way to foster long-term relationships can be difficult for many organizations. With a banking CRM, there is a great deal of data available right at your fingertips, which can be used to proactively deliver personalized services. Since your CRM enables you to record customer notes and personal information, you can enhance every experience. For example, if a bank teller adds a note to a customer profile that says they were asking questions about a certain type of loan, the loan department can follow up by emailing them helpful resources that explain their options. Showing your customers that you’re listening to them and making efforts to improve their experience at your bank is a strategic way to promote loyalty.

3. Enable Quicker Processes
With a single, unified system, any bank employee can access a customer profile to quickly get up to speed on an account. For example, if a customer contacts a call center, the employee they speak with can make real-time updates to their profile in the CRM. When the customer visits their local bank branch, the bank tellers will be able to see notes from their interaction with the call center. This can eliminate any duplicate conversations and provide the bank teller with a holistic understanding of the customer’s situation.

4. Use Insights to Improve Sales and Marketing Efforts
The data in your CRM can be compiled into reports so you can gain a much deeper understanding of your customers. From there, you can identify trends, successful campaigns, and areas for improvement that will help you anticipate customer needs and tailor your future marketing efforts. You can also use the data in your customer profiles to pinpoint areas for cross-selling and upselling. For example, if a customer makes a deposit inside the bank, the teller can have a full view of their profile and notify the customer of new products they may be interested in or qualify for, such as a platinum credit card.

5. Make Your Staff More Productive
With all customer information available under one CRM system, there’s no need for employees to search through emails or check multiple platforms for the answer to a quick question. Repetitive administrative tasks are eliminated so employees spend less time scrounging through data and more time fostering client relationships.According to Nucleus Research, sales representatives saw a productivity increase of 26.4 percent when social networking and mobile capabilities were utilized in their CRM. Users can also access a CRM from any device, such as a laptop, desktop, or smartphone, meaning there’s no limitation to where and when data can be viewed.

How Hitachi Solutions Can Help

Ready to see what banking CRM software can do for your organization? Hitachi Solutions’ Engage for Banking is designed to provide bankers with a customer-centric view of their business. As a Microsoft Dynamics 365 solution, Engage for Banking integrates seamlessly with the entire suite of Microsoft products, giving bankers the tools they need to understand who their customers are and what they need from their bank.

To learn more about Engage for Banking or to experience a demo, contact Hitachi Solutions today.