Analytical CRM technologies in financial services institutions

Abstract

The once familiar and distinct territories known as the banking industry, insurance industry and securities industry are quickly disappearing. Deregulation, technology, changes in legal systems and global competition are blurring the lines that traditionally used to define the financial services markets – geography, product offerings, financial barriers, time differences and distribution channels. Instead of going to the bank or an insurance company, people are more likely to visit an automated teller machine (ATM), a kiosk, or a website, where they can also check their stock portfolio or compare insurance rates online. Faced with an increasing array of financial products and services, customers are expecting more from providers in terms of customised offerings, value, ease of access and personalised service. It is now difficult for financial institutions to differentiate their products solely based on price. This paper discusses the changing financial services industry, the evolution of customer relationship management (CRM) services and outlines the way in which analytical CRM can help financial organisations build customer and channel loyalty, enhance customer relationships and increase customer, channel and product profitability and market share.