The importance of implementing CRM concept in the banking sector

Abstract

In the past banks traditionally operated at the predominantly stable market. With the outbreak of the economic crisis and the increased number of competitors the situation has drastically changed. Today banks are facing aggressive competition, which requires additional efforts in order to ensure survival at the competitive and unpredictable market. Customers are the essence and basis of the banking sector's development. Banks cannot function without customers. This is why Customer Relationship Management (CRM) is of strategic importance for the banking sector. CRM helps banks to achieve profit by establishing long-term relations. High-quality customer relationship management is only possible with the support of a sound IT system. The practice among companies has shown that investments in the CRM system and customer relations are usually intuitive and based on the management's experience, with no detailed investment plan as in the case of other investment fields. Banks have realized that customer relationship management is an extremely significant factor of their success. CRM is a strategy that may help them build long-term relations with their clients, thereby increasing their profit through an adequate management system and implementation of customer-oriented strategy.