10 Benefits That Shows the Importance of CRM in the Banking Sector

10 Tips That Show The Importance Of CRM in Banking Sector

How many times have you visited a bank and got tired of repeating your account details at every desk? Probably EVERY TIME! And doesn’t it make you wonder if they supposedly need to have that data readily available?

Customers today expect customized services, enhanced value offerings, personalized services, and increased accessibility. Globalization has ushered in a new generation of private sector banks, as well as several foreign banks, all of which offer a variety of beneficial and creative products. 

Banks must differentiate themselves by providing value-added services, along with offering and maintaining long-term connections with their clients.  Customer retention and satisfaction with business services and products are crucial to any organization’s success in today’s competitive business world, and the banking industry is no exception. 

Building a customer-oriented framework and applying advanced-level customer relationship management functionalities for increasing business will help bank management better understand customers’ demands & ultimately meet them using the advantages of CRM in the banking sector. 

As per the statistics by Reichheld and Sasser, demonstrating 5% growth in customer retention can increase the profitability up to 35% in the banking industry. 

With the ever-increasing competition within the banking industry, CRM has become a crucial point. It is a cutting-edge, customer-centric approach to service that enables businesses to acquire a competitive advantage and win greater clientele. 

The importance of CRM in banking determines the goal of assisting banks in managing customers and better understanding their needs in order to swiftly deliver the appropriate solutions.


Let us now look at the Benefits of CRM in the Banking Sector

10 Benefits That Shows the Importance of CRM in the Banking Sector

With just a few clicks, CRM can save a bank’s time by automating tedious administrative activities, optimizing customer interactions, and keeping every team informed across the bank. There’s no reason not to adopt a CRM that can achieve the following benefits since customers are open to sharing their information with their banks. 

1. Better Segmentation for Customers

Banks need to work towards a customer-centric business model which is needs-based. CRM in banking enables banks to correctly stratify their customers based on a variety of factors such as:

  • Gender
  • Demography
  • Age
  • Income
  • Credit rating and so on. 

Moreover, it will also allow segmentation based on investment scheme preference, investment size, customership duration, and more. 

This classification will act as a specific parameter to evaluate the data provided by the CRM tool. Eventually, the personalized approach will significantly support banks in targeting and reaching out to each customer, as well as nurturing the business relationship with them. 

2. Boosted Sales

By implementing the right BFSI CRM, banks will be able to provide the digital-first banking experience that consumers expect. A Mobile CRM can help banks launch digitization across both online and mobile banking experiences, just from simple onboarding to real-time service solutions. The tool will help identify, nurture and convert leads for the better and enhanced functioning of the banks. 

3. 360- Degree of View for Every Customer

A banking CRM is a unified system that combines with banking software applications to provide you a single picture of all of your customers’ accounts. 

Every predetermined action a consumer makes can be logged in the CRM, from making an ATM transaction to requesting information about a specific sort of loan. This makes gaining deeper insights into their habits and personal preferences quick and straightforward, which can help banks match particular goods to their financial goals. 

4. Personalize Customer Journey

With the end number of private banks available, as customers, we all use multiple banks for varied requirements instead of just one. Therefore, a personalized customer experience can make their banking experience stand out from the crowd. 

A CRM eliminates all loopholes and enables you to assist each customer along their journey from opening an account to transactions, loans, and more. This and in turn allows banks to value customer’s presence and satisfy their banking needs on time and without hassle. Keep up and follow-up, up in order to show that you care about your customers and their association with the bank, which is appreciated.

5. Insights that help improve Sales and Marketing

10 Benefits That Shows the Importance of CRM in the Banking Sector

Data available through the CRM tool can be compiled into reports which in turn give a strategic and deeper understanding of your customers. Bankers can then easily identify trends, campaigns, and areas for improvement that will help them implement new strategies and tailor future marketing campaigns accordingly. 

Banks can also use the information in their customer profiles to identify potential cross-selling and upselling opportunities.

When a customer makes a deposit inside the bank, for example, the teller has access to their entire profile and can notify them about new products they might be interested in or eligible for, such as credit cards or special loans.

Cast an eye over 500+ reporting formats with Kapture’s Reports & Analytics feature that lets you acquire expertise in all sales operations that eventually steers you in the right direction.

6. Improved Customer Retention

A CRM tool best offers real-time data that helps banks evaluate the next- course of action. One always needs to remember that the more effective strategy, the happier the customer. With a customer-oriented strategy and on-time resolution, your bank will outperform your competitors

There have been times when poor customer service has led us to think about switching banks altogether. It is a banker’s duty to address as and when they come across any dissatisfied customer, find the problem and reassure the client with remedies in order to retain them from leaving the bank.

7. Inter-Department Data Tracking

With all the data available in one place, the CRM tool can make any banker’s life easier than ever before. CRMs can assist banks in keeping all departments on the same page so that customers do not have to move from department to department. It can also provide a digital experience that matches what customers would anticipate from a face-to-face encounter with their banker.

Since the correct CRM can track data from multiple departments. Therefore, a call to customer care or a missing account can be used to prepare future customers to embrace banking with you even before they speak to a banker. For an interdepartmental lead, there will be no need to start a new conversation every time.

8. Train your Workforce

One of the key benefits of CRM in the banking sector is the elimination of repetitive administrative activities when all customer information is stored in one system. This allows employees to spend less time trawling through data and more time nurturing client relationships. Conduct monthly training sessions for your employees in order to make them more efficient and productive.  

Kapture’s Learning Management System enables banks to maintain a healthy yet innovation driven environment by keeping track of their employee’s performance. Design various custom training programs and resources available at a click.

9. Better Service 

10 Benefits That Shows the Importance of CRM in the Banking Sector

CRM with all things in real-time makes it effortless for bank representatives to add notes about client requirements and hence makes following up much easier. 

With online banking available at our fingertips, bankers should be able to proactively offer personalized services and experiences to their customers. Strengthen your customer service with a CRM’s omnichannel experience that allows you to efficiently manage customers reaching out through calls, chat, email, social media, or mobile applications.

10. Increased Customer Loyalty

Customers don’t have enough time to explain their problems or previous interactions with a new agent. Instead, bankers may pull up every service ticket, purchase, and data point at the exact moment consumers require assistance, allowing them to intervene and rescue the day. And transform challenges into opportunities for growing loyalty and satisfaction by using a CRM solution to stay on top of customer care and tailor their response.


Kapture to enhance your customer’s banking experience

Kapture’s feature-rich customer support platform is here to effortlessly simplify your customer’s banking experience with tools that can help your agents perform brilliantly. With ISO 27001 and GDPR compliance, use Kapture’s banking CRM to provide pleasant banking services while maintaining security.


About the Author

Vartika Singh
Vartika Singh
Senior Content Writer at Kapture, Vartika Singh is a Literature buff who loves putting out well researched content. She has previously worked towards enlightening the world about cryptocurrencies.


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