The
use of CRM in banking has gained importance with the aggressive
strategies for customer acquisition and retention being employed
by the banks in today's competitive milieu. This has resulted
in the adoption of various CRM initiatives by these banks
to enable them to achieve their objectives.
CRM
has been deployed in retail banking. Retail banking refers
to mass-market banking where individual customers typically
use banks for services such as savings and current accounts,
mortgages, loans (eg: personal, housing, auto, and educational),
debit cards, credit cards, depository services, fixed deposits,
investment advisory services (for high-net-worth individuals),
etc. The challenges in managing customer relations in retail
banking are due to the multiple products being offered and
the diverse channels being used for distribution of the products.
Customer expectations from banks can be summed up as: Anytime
anywhere service, personalized offers, and lower payouts. |