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FINANCIAL SERVICES

UNIT V

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INTRODUCTION

Financial services refer to servicesprovided by the finance industry.

The finance industry encompasses a

broad range of organizations that

deal with the management of

money. Among these organizationsare banks, credit card companies,

insurance companies, consumer

finance companies, stockbrokerages, investment funds and

some government sponsoredenterprises.

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Extending CRM into multiple media means integrating the front office with

different communication channels

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Factors affecting the adoption of new

financial services

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IMPACT OF CRM

Benefits of Using CRM inBanking Industry

Provide better customer balance

Increase customer revival

Discover new customers

Helps sales staff close deals faster

Making banking operation more

efficient

Simplify marketing and sales

process

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Organization Without CRM

Unsatisfied Customer

Low customer retention

Low sales

In efficient BankingOperations

Complexity

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CRM Strategies Adopted in Banking Sector

One-Stop Financial Supermarket

Right service is offered to right customers

Increasing the Number of Delivery Channels to the Customers

Shifting customer access to lower cost channels can help inbring down the operating cost

The Real Time Gross Settlement (RTGS), CBS (Core Banking

Solution)

Customer Value Management

The main thrust of CRM is to develop new products, render

value creation, gain market leadership and spread risks and

vulnerabilities besides facing competition

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Utility of CRM in Banks

Campa

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Management

Customer

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Consol

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Remov

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CRM Business Model

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Customer management assessment tool

Assessments bring together a range of tools and methodologies that provide a

detailed, objective, benchmarked assessment of an organizations capability to

effectively manage its customers.

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Financial Services

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Financial Services Institutions:

Retail, corporate, investment and private banks

Mutual funds, investment trusts

Personal and group pensions

Life and general insurance and reinsurance companies

Credit card issuers

Specialist lending companies

Stock exchanges

Leasing companies

Government saving institutions

Brokers and agents

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Financial Services Environment:

A number of external forces have exerted influence onthe sector, including:

1- Socio-economic factors:play an important rule indetermining the demand for financial services. Ex.Changes in the distribution of income and wealthand patterns of consumption.

2- Regulatory environment: Regulations have played a

major role in shaping the behavior of suppliers andoffering increased protection to consumers. Serve tostrengthen the procedures and practices already setin place.

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Financial Services Environment:

3- Technology: Traditionally paper-based systems have

become fully automated, providing greater flexibility

and scope for expansion. Without a doubt,technology holds the key to future long-term success

for financial institutions, from innovative distribution

channels, which are both cost efficient and effective

at delivering customer service, to customerdatabases, which enable better use of target

marketing.