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Impact of CRM Software in the Banking & Financial Sector



Impact of CRM Software in the Banking & Financial Sector

Meeting client expectations is one of the particular problems of commercial banking in a digital environment. You can’t simply have a terrific checking account or loan conditions, as most retail consumers can.

You must provide competent financial counsel. And in the information era, it means knowing each customer’s industry inside and out, developing a customized strategy, and doing it all faster than ever before. Your business clients want goal-based planning, proactive insights, tailored outreach, and other services.

Business banks should follow suit as fintech build seamless, frictionless, tailored experiences for clients, particularly in the banking arena, or risk falling behind in the competitive market.

A good banking CRM may help any organization to promote new clients, close deals, and offer exceptional customer care, but the advantages of a CRM in business banking are extremely valuable.

Here are some of those advantages, as well as how you can use the proper banking CRM system to become the bank your clients love.

How does cloud-based banking CRM helps the finance industry

Bankers understand what banking CRM is and how it works. However, not everyone recognizes the importance of CRM in banking and does not include such systems in their operations.

It appears that your bank may be profitable even without a CRM, but don’t be fooled; customer-focused solutions considerably improve everything linked to the engagement process.


Here are some points that tell you why banking sectors must have a CRM system to deliver a superior customer experience.

1. Smooth customer service

Effective and timely communication will help you to better serve your consumers. CRMs eliminate all communication barriers between banks and their clients by enabling bank executives to get the information they want with a single click. This enables the bank to provide consistent service to both satisfied and disgruntled clients.

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 2. Tailored customer experience

When communication obstacles are broken down, the Customer Experience improves. How does a CRM solution accomplish this? Simply put, by providing you with client data when and when it is required to boost total customer retention.

3. Better lead management

There are so many leads, but which ones are worth following up on? Another million-dollar question is how banks can reach out to prospects as quickly as feasible. Both are addressed by a CRM solution! The majority of banking customer service software systems include complete lead management. Bank CRM solutions conduct the aforementioned duties with agility, from successfully gathering leads to converting and nurturing them.

4. Improved sales

Banking CRMs have a larger role in increasing sales. Sales and earnings will undoubtedly increase when leads are adequately handled or nurtured, in addition to clients receiving the standard CX (Customer Experience) they need.

5. Enhanced team productivity

As previously said, one of the most significant concerns for banks is increased operating expenses. Banking CRMs help businesses save money by automating repetitive and time-consuming procedures and optimizing everyday operations. Bank staff become more productive and can focus more on essential areas when operations are simplified and automated.

6. Detailed insights

Bank CRM systems are heavily utilized to collect real-time data and thorough reports that assist key decision-makers in making the best projections. Banks may strengthen their decision-making abilities while also polishing their commercial efforts with the important insights provided by a Finance CRM.


Challenges faced by the Banking industry

On a daily basis, the banking industry encounters roadblocks. While some obstacles are unexpected and extremely unusual, others are predictable and an unavoidable part of any bank’s daily battle. Let us see the difficulties-

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1. Fierce competition

It goes without saying that the corporate world is ruthless and cutthroat, something that banks, like any other industry, must cope with. Traditional banks’ main competitors are FinTechs, and the disruptor would be crypto currencies or digital money.

2. Increased customer expectations

Customers nowadays are more technologically savvy and financially aware than ten years ago. Banks face extremely demanding consumers, with the catch-22 that there is little customer loyalty because customers have a choice of options and may switch bank accounts with a single click.

3. Legal challenges

The government establishes new financial laws, and banks must follow them or risk legal ramifications.

4. Security breaches

According to Reserve Bank of India (RBI) data, India recorded 229 banking frauds each day in the fiscal year 2020-21, with just 1% of the total amount being recovered at the time. Cyber security is one of the most pressing worries or difficulties for both banks and their clients.

Banking CRM helps the finance industry in streamlining the entire customer relationship process. Automation saves employees time by eliminating repetitive tasks. Implementing a banking CRM can help you in delivering the best customer service to your customers.

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How clean, organized and actionable is your data?



90% of marketers say their CDP doesn't meet current business needs

A customer data platform (CDP) centralizes an organization’s customer data, providing a single 360-view of each consumer that engages with the company. Yet there are still data-related considerations that organizations have to make beyond what the CDP does.

“[CDPs] were designed to fill a need – to enable a marketer to easily get to the data they need to create their segmentation and then go on and mark it from that point,” said George Corugedo, CTO of data management company Redpoint Global, at The MarTech Conference. “But the issue is that CDPs really don’t take care of the quality aspects of the data.”

Maintaining data quality also impacts segmentation, campaigns and privacy compliance challenges for marketing teams that use this data.

Data quality

The data in a CDP depends on the quality of where it came from. Therefore, an organization using a CDP must also consider the quality of the data sources and reference files used to build out the CDP.

“The inevitable question is going to be, how good is this data?” said Corugedo. “How much can I trust it to make a bold decision?”

This is something that has to be on every organization’s radar. For instance, when identity resolution is used, the issue depends on the quality of the third-party reference files. If they are provided by a telecommunications company or credit bureau as the data partner, those files might only be updated quarterly.

“It’s just not an optimal solution, but every single CDP on the market uses some form of reference file,” Corugedo stated.


It’s up to the data scientists and other team members working within the organization to own the accuracy of these data sources.

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Read next: What is a CDP?

Segmentation and other actions

The quality of the data using specific reference files and sources will vary and will impact the confidence that marketers have in creating segments and using them when deploying campaigns.

Marketers have to make this decision at a granular level, based on the trustworthiness of data from a particular lineage.

“If they have a campaign that is reliant on suspect data, they can actually delay that campaign and say maybe we wait until that data gets refreshed,” said Corugedo.

Otherwise, marketers are just “spraying and praying.”

Using rules instead of lists

The advantage of having a CDP is unification of all data. But the data is being updated all the time. Instead of deploying campaigns based on a fixed list of customers, the use of rules to define segments allows marketers to update who they engage in the campaign.

“A list, as soon as it’s detached from the database, starts to decay because it doesn’t get any updates anymore,” Corugedo, adding that using lists takes longer to execute a campaign.


Lower quality from data that isn’t updated can have serious implications for healthcare and other industries, where accuracy is essential. 

“Instead, rules are passed through the campaign just like they would be with a list, but those rules reevaluate every time there’s a decision point to make sure that only the qualified people get the particular content at that point,” Corugedo explained.

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Privacy and regulatory compliance

Maintaining data quality through a Redpoint Global dashboard, or a similar combination of tools and data personnel, will also help an organization manage privacy.


The crucial point is that people on the team know where the data came from and how it’s being used in campaigns. The stakes for sending out relevant messaging are high. Privacy and compliance issues raise the bar even higher.

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If you’re using a CDP, you can save headaches and extra labor by using a tool that has compliance and privacy baked in, so to speak.

“What we’ve done is embrace some of this complexity and absorb it into the environment, so the marketer never even sees it,” said Corugedo. “What we do is with every implementation, we will implement a PII vault that keeps PII data super secure, and we can anonymize the marketing database.”

This way, personal information of individual customers (PII) is never violated.

“Marketers ultimately don’t necessarily need to have visibility to PII,” Corugedo explained “They like to see it for testing purposes and making sure that it looks right and everything, but the truth is we can do that in other ways without revealing PII.”

Having a handle on data quality adds to the confidence marketing teams have in creating segments and executing campaigns, and it can also help protect the customer’s privacy and guard against regulatory infringements.

Facts not fiction: Beyond the CDP from Third Door Media on Vimeo.


About The Author

Chris Wood draws on over 15 years of reporting experience as a B2B editor and journalist. At DMN, he served as associate editor, offering original analysis on the evolving marketing tech landscape. He has interviewed leaders in tech and policy, from Canva CEO Melanie Perkins, to former Cisco CEO John Chambers, and Vivek Kundra, appointed by Barack Obama as the country’s first federal CIO. He is especially interested in how new technologies, including voice and blockchain, are disrupting the marketing world as we know it. In 2019, he moderated a panel on “innovation theater” at Fintech Inn, in Vilnius. In addition to his marketing-focused reporting in industry trades like Robotics Trends, Modern Brewery Age and AdNation News, Wood has also written for KIRKUS, and contributes fiction, criticism and poetry to several leading book blogs. He studied English at Fairfield University, and was born in Springfield, Massachusetts. He lives in New York.

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