Project Report

On
HDFC
CRM SYSTEM

SUBMITTED TO:- SUBMITTED BY:-

Mr. Anil Vashisht GROUP NO.-8

Neha Yadav

Bhumika Gandhi

Roopkaran Kaur
 TABLE OF CONTENTS

S.NO Subject covered Description

1. Objective of the project -To understand CRM and
process involved, identify the
requirement of CRM, study
different aspects of banking
industry.
2. Methodology -Primary and secondary
sources.
3. Indian Banking Industry -The Indian banking market
and its growth, upcoming
foreign banks in India.
4. Introduction of CRM -Introduction of CRM,
Principles CRM, Need and
future challenges in CRM
5. CRM In Banking Industry -CRM and banking ,Private
banking and CRM
6. HDFC -Introduction of HDFC,
Company profile, Business
strategy, Recent development
and achievements
7. CRM at HDFC -CRM technology, CRM
solutions, CRM Banking
benefits, Key Modules at
HDFC
8. Security issues in CRM -Security issues,Improving the
compliance posture, CRM
banking benefits.
9. Analysis, Conclusion,
Recommendations, Limitation of study
OBJECTIVE OF THE PROJECT

1) To Understand the significance of Customer Relationship Management and the

processes involved in doing so.
2) To identify the requirements of Customer Relationship Management
3) To Study the Customer Relationship Management methodologies and its
different aspects in industry (Banking Industry to be considered).

METHODOLOGY

Primary as well as Secondary source has been used for study. Primary data has
been collected with the help of telephonic conversation with the bank managers of
HDFC separately. Secondary data has been collected from the bank’s website, and
different other websites whose the links are been given in the bibliography section.
 INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected
to reach US$1 trillion by 2011. An expanding economy, middle class, and
technological innovations are all contributing to this growth.
The country’s middle class accounts for over 320 million people .In correlation
with the growth of the economy, rising income levels ,increased standard of living,
and affordability of banking products are promising factors for continued
expansion. The Indian banking Industry is in the middle of an IT revolution,
Focusing on the expansion of retail and rural banking. Players are becoming
increasingly customer - centric in their approach, which has resulted in innovative
methods of offering new banking products and services. Banks are now realizing
the importance of being a big player and are beginning to focus their attention on
mergers and acquisitions to take advantage of economies of scale and/or comply
with Basel II regulation.“Indian banking industry assets are expected to reach
US$1 trillion by 2010 and are poised to receive a greater infusion of foreign
capital, ”says Prathima Rajan, analyst in Celent's banking group and author of the
report. “The banking industry should focus on having a small number of large
players that can compete globally rather than having a large number of fragmented
players."
 UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign banks in India.
This is as an aftermath of the sudden interest shown by Reserve Bank of India
paving roadmap for foreign banks in India greater freedom in India.

The following are the list of foreign banks going to set up business in India :-

· Switzerland's UBS

· US-based GE Capital

· Credit Suisse Group

· Industrial and Commercial Bank of China

Customer Relationship Management

Customer Relationship Management or CRM is the establishment, development,

maintenance and optimization of long-term mutually valuable relationships
between consumers and the organizations. It focuses on understanding the needs
and desires of the customers and is achieved by placing these needs at the heart of
the business by integrating them with the organization's strategy, people,
technology and business processes. The core theme of all CRM and relationship
marketing perspectives is its focus on co-operative and collaborative relationships
between the firm and its customers, and/or other marketing actors. An important
facet of CRM is “customer selectivity”. As several research studies have shown not
all customers are equally profitable (In fact in some cases 80% of the sales come
through 20% of the customers). The company must therefore be selective and tailor
its program and marketing efforts by segmenting and selecting appropriate
customers for individual marketing programs. By reducing customer defection (by
as little as 5%) will result in increase in profits by 25% to 85% depending from
industry to industry. So, we can say, Customer Relationship management is a
comprehensive strategy and process of acquiring, retaining and partnering with
selective customers to create superior value for the company and the customer.
 Key CRM principles

For successful implementation of CRM, understanding the customer is very

important. A customers’ reaction to a cellular company operator may be quite
different as compared to a car dealer. Besides for the same product or the service
not all customers can be treated alike and CRM needs to differentiate between a
high value customer and a low value customer. What during CRM an enterprise
needs to understand while differentiating customers is:
- Sensitivities, Tastes, Preferences and Personalities
- Lifestyle and age
- Culture Background and education
- Physical and psychological characteristics

The key principles of CRM are as follows:

· Differentiating Offerings
· Low value customer requiring high value customer offerings
· Low value customer with potential to become high value in near future
· High value customer requiring high value service
· High value customer requiring low value service

1. Keeping Existing Customers

Grading customers from very satisfied to very disappoint should help the
organization in improving its customer satisfaction levels and scores. As the
satisfaction level for each customer improves so shall the customer retention with
the organization.

2. Maximizing Life time value

Exploit up-selling and cross-selling potential. By identifying life stage and life
event trigger points by customer, marketers can maximize share of purchase
potential. Thus the single adults shall require a new car stereo and as he grows into
a married couple his needs grow into appliances.

3. Increase Loyalty
Loyal customers are more profitable. Any company will like its mindshare status to
improve from being a suspect to being an advocate. Company has to invest in
terms of its product and service offerings to its customers. It has to innovate and
meet the very needs of its clients/ customers so that they remain as advocates on
the loyalty curve. Referral sales invariably are low cost high margin sales.
Need for CRM

A Relationship-based Marketing approach has the following benefits:

1. Growth: Over time, retail bank customers tend to increase their holding of the
other products from across the range of financial products / services available.

2. Referrals: Long-term customers are more likely to become a referral source.

3. Cross-Sell: The longer a relationship continues; the better a bank can understand
the customer and his/her needs & preferences, and so greater the opportunity to
tailor products and services and cross-sell the product / service range.

4. Retention and cost reduction: Customers in long-term relationships are more

comfortable with the service, the organization, methods and procedures. This helps
reduce operating cost and costs arising out of customer error. According to the
research 5% increase in customer retention can increase profitability by 35% in
banking business, 50% in insurance and brokerage, and 125% in the consumer
credit card market. Therefore, banks are now stressing on retaining customers and
increasing market share.

Future Challenges of CRM

- Enhancing ability to demonstrate value through performance measurement data.

- Incorporating Service Level Management (ITIL) principles into the CRM role.
- Filling the competency gaps in the face of talent shortage.
- Improving client recognition of the CRM function and how to leverage the role
most effectively.
-Keeping pace with the rapid pace of technology change and how it can transform
service delivery for clients.
 CRM in Banking Industry

With the advent of new technologies in the business of bank, such as Internet
Banking and ATMs, now customers freely chose any bank for their transactions.
The pressures of competitive and dynamic markets have contributed to the growth
of CRM in the Financial Services Sector. 5% increase in customer retention can
increase profitability by 35% in banking business, 50% in insurance and brokerage,
and 125% in the consumer credit card market. Therefore, banks are now stressing
on retaining customers and increasing market share. Private Banks have
traditionally viewed themselves as exceedingly 'Customer Centric' offering what
they believe to be highly personalized services to the High Net Worth Customers.
However, changes in the customer behavior and accumulation of wealth are
resulting in the needs of HNW customers becoming more diverse and complex in
terms of the sorts of products they want, the channels through which they want to
access them and the associated range of advice. Technical solutions deployed by
banks today are flexible, user-friendly and meant to facilitate specific workflow
and requirements in implementation processes. In order to simplify lives, banks
have begun to implement end-to-end technologies through all departments with the
intention of removing human error from processes. Previously existing manual
environments could not have been adequate for future visions, growth plans and
strategies.

CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources
gain insight into the behavior of customers and the value of those customers. If it
works as hoped, a business can: provide better customer service, make call centers
more efficient, cross sell products more effectively, help sales staff close deals
faster, simplify marketing and sales processes, discover new customers, and
increase customer revenues. It doesn't happen by simply buying software and
installing it. For CRM to be truly effective , an organization must first decide what
kind of customer information it is looking for and it must decide what it intends to
do with that information. For example, many financial institutions keep track of
customers' life stages in order to market appropriate banking products like
mortgages or IRAs to them at the right time to fit their needs. Next, the
organization must look into all of the different ways information about customers
comes into a business, where and how this data is stored and how it is currently
used. One company, for instance, may interact with customers in a myriad of
different ways including mail campaigns, Web sites, brick-and-mortar stores, call
centers, mobile sales force staff and marketing and advertising efforts. Solid CRM
systems link up each of these points. This collected data flows between operational
systems (like sales and inventory systems) and analytical systems that can help sort
through these records for patterns. Company analysts can then comb through the
data to obtain a holistic view of each customer and pinpoint areas where better
services are needed. In CRM projects, following data should be collected to run
process engine:-
1) Responses to campaigns
2) Shipping and fulfillment dates
3) Sales and purchase data
4) Account information
5) Web registration data
6) Service and support records
7) Demographic data
8) Web sales data.

Private Banking and CRM

Private Banks have traditionally viewed themselves as exceedingly 'Customer
Centric' offering what they believe to be highly personalized services to the High
Net Worth Customers. However, changes in the customer behavior and
accumulation of wealth are resulting in the needs of HNW customers becoming
more diverse and complex in terms of the sorts of products they want, the channels
through which they want to access them and the associated range of advice. The
wealthier the customers, the more demanding they are - and the clients expect
more and more from their banks .Competition for "Supremely elite" is increasing.
WE UNDERSTAND YOUR WORLD
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to
set up a bank in the private sector, as part of the RBI's liberalization of the Indian
Banking Industry in 1994.
The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as
a Scheduled Commercial Bank in January1995. HDFC Bank has embraced
sophisticated information technology to pursue its expansion from corporate
banking to become a world-class provider of wholesale and retail financial services
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets .Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment. HDFC Bank began operations in 1995 with a simple mission : to be a
“ World Class Indian Bank.”
HDFC Bank is using sophisticated solutions from SAS to generate an entirely new
class of analysis and insights relating to customer relationship management,
regulatory compliance, credit assessments and more.
CRM in HDFC Bank

In HDFC, the CRM is integrated with core banking solutions and offers end to end
functionality to effectively address the needs of the complete cycle of marketing,
sales and service of banking products.

Key Modules:

-Enterprise customer information file

-Sales

-Loan origination

-Service

-Call centre

-Marketing

SAS provides a broad range of analytics to help HDFC Bank make credit
decisions, enhance its cross-sell and up-sell marketing, and comply with strict
regulations.

The HDFC bank has implemented a data warehouse solution that would eliminate
the inconsistencies of working with disparate sources. The warehouse pulls
information from the different customer interface channels the bank offers,
centralizing them in a single database. In early 2002, the bank completed the
interface of the warehouse with the retail banking liability system, followed by the
assets system and the depository system by the end of 2002.The bank gives certain
profitable customers ‘preferred’ status in service deliveries and pricing. This helps
the bank to know which channels the particular customer prefers to use. The bank
then sets up its investments in that channel. The bank undertakes analytics-driven
database driven marketing efforts based on the banking behavior of the customer.
If he has used his card in an apparel shop, customized incentive mailers are sent to
him; or marketing programs are sent to merchants who facilitate usage of the
bank’s cards on the bank’s terminals. The data warehouse with over two tera byte
of data under management empowers the product managers to study and monitor
the customer and business trends over the last six quarters in an online manner.
According to researchers, 81% customers recommend HDFC BANK products,
91% of these are having good purchasing experience with the company.

58% of the customers said that the maintenance charges charged by the company is
moderate, 55%of which are having good purchasing experience and 85% of which
recommend HDFC BANK to others.63% customers are satisfied with the existing
services rendered by the organization. Majority (67%) of customers rated the
HDFC BANK products as “good” and 67% of which are highly satisfied with the
service of the company. According to HDFC Bank, a customer is an asset to the
company only if he is a loyal customer. Approximately 76% customers of HDFC
BANK are discovered to be loyal. This is the area where the organization can and
plans to improve in the near future. HDFC Bank uses iFlex's Micro banker and
Finware for its core banking operations. It plans to transfer to their new ``Universal
Banking Services'' package as soon as the acceptance tests currently under way are
completed. The bank also uses their Internet banking software.

For the, the IT activities span three segments:-

1. Back-office, which enables all transactions

2. Distribution of the bank's products and services in the market. That is, enabling
customer interaction through the Internet, ATMs, the mobile phone. HDFC's
corporate customers need not visit the bank for many of their transactions either.
PC-based corporate banking lets authorized personnel in corporate open letters of
credit or pays suppliers and integrates the transaction with the ERP system.

3. The third sort of automation enables the business intelligence and CRM aspects
of a bank's business. For cash management, the bank uses a package from a Pune
company called Cash Tech. The bank’s Depository systems run on software
provided by Mumbai-based Kal pataru. For loans, bank uses the Nucleus Software.
To provide round-the-clock service and support to its customers, HDFC Bank has
Unix-based systems from Sun Microsystems as hosts for its banking software. It is
in the process of moving the application to a mainframe-class UNIX machine (the
E10000 from Sun) in the near future.
STRATEGY USED BY HDFC

HDFC Bank views cross selling to existing customers as a crucial growth strategy.
“One of the most important functions of our data warehouse is to achieve a
consolidated view of the relationship our bank has with each customer. HDFC
want a 360-degree view that shows us the credit card account, fixed-deposits, asset
accounts – the totality of their relationship – so that we can segment our most
profitable customers to offer more attractive products, services and pricing, and
create an overall better relationship with them.

SAS, combined with the bank’s CRM solution, helps HDFC Bank model its
customer data and assign propensity to buy, spend and (for credit and debit cards)
activate. SAS helped the bank target sales communications to its customers thereby
reducing the number of calls each customer receives. Additionally, the highest-
performing, highest-margin strata of customers - the “Imperia” customers – receive
an almost concierge-like experience with aggressive, attractive pricing and
multiple cross-selling offers. HDFC knows that the customer is high in the value
chain so there should be a stronger level of profitability in that relationship. So
they reach a greater number of higher-margin customers at far lower cost.

The correct product for cross-sales promotion is identified using the customer
profile, life stage and behavioral dynamics. The predictive power of this analysis
encouraged the bank to extend the use of SAS to inbound channels; thereby further
reducing the number of calls from the bank without compromising meaningful
interactions with the customer. Today, more than 70 percent of HDFC Bank’s
credit card portfolio is a result of cross-sales to existing customers of standard
liability products, such as savings and salary accounts.

Security Issues in Customer Relationship Management Systems

The objective of customer relationship management (CRM) is to identify, acquire,

and retain customers. CRM software or systems include sales, services and
customer support, call centers, sales force automation systems, and order
management. In the last ten years, software companies attempts to consolidate
some of these incongruent technologies into an integrated system . The sale of
CRM applications is expected to reach more than 5 billion in 2005.

Because the CRM system is customer-centered, a multi-channel strategy is used by

major CRM software. All kinds of machines such as handheld computers, fax
machines, and cellular phones can be interface devices for accessing CRM
systems. Among them, Internet access becomes a necessary requirement for most
CRM systems. A major part of a CRM system can be classified as a B2C system.
Convenience is a major characteristic for CRM systems; however, it also opens the
doors for various security attacks. These attacks range from denial of service
(DOS), Mal-ware attacks, and identity theft. Methods to prevent these attacks in
CRM systems become an emerging issue. The purpose of this paper is to discuss
the security issues in CRM systems and possible methods to prevent security
attacks .

MAJOR CRM SYSTEMS AND MAJOR COMPONENTS

Major CRM systems in the market today are Siebel, mySAP, and Oracle. Web-
based software, such as Salesforce.com is becoming very popular. Major
components of a CRM system include:

1. Sales

2. Call centers

3. Sales force automation systems

4. Order management

5. Customer support

HDFC Bank's payment gateway EPI provides seamless real-time transfer of funds

transacted on the portal. It is a state-of-the-art facility which has been successfully
implemented by as many as 15 B2B portals, such as VSNL, Sifymall, Fabmart,
etc. HDFC Bank has a dedicated HELP DESK set up in the four metro cities and
Hyderabad and Bangalore along with a round the clock maintenance with efficient
back-up. 
The entire operation takes place through a secure channel. The security
features include:- 
-Firewalls 
-128 - bit encryption 
-SET certification for digital signature

Improving the compliance posture

Anti-money laundering regulation creates strict burdens for banking institutions

around the world – and India is no exception. HDFC Bank uses SAS as part of a
stringent and focused program for monitoring and identifying potentially
fraudulent transactions. For instance, SAS helps identify suspicious activity such
as layering or moving money to multiple accounts, finding large single-day cash
deposits, opening a number of accounts in a short period of time or sudden activity
in long-dormant accounts.

The Know Your Customer [KYC] aspect of banking is very important in anti-
money laundering regulations. “As they on-board the customer, they run customer
through certain profiles and cross-check against a list of banned individuals.
Identifying a customer and matching him against good and bad lists requires very
clean data. SAS helps us do some enrichment and data cleansing to strengthen our
KYC compliance.”The comprehensiveness of SAS’ scenario modeling has made
monitoring of transactions “from an anti-money laundering perspective,
qualitatively rich and dependable, and has enabled the bank to file qualitative
suspicious transaction reports to the Financial Intelligence Unit.”

HDFC bank is very good at its Grievance Redressal Mechanism. HDFC Bank
realizes that quick and effective handling of complaints as well as prompt
corrective & preventive actions to improve processes are essential to provide
excellent customer service to all segments of customers. Any complaints received
either verbally, via email or in writing - from the customers, will be logged into
the state-of-the art web-based software namely Nexstep CRM and Vision Plus
(for Credit Card related complaints). The bank will not only ensure that all the
complaints received are recorded and resolved, but also ensure effective
monitoring / escalation mechanism to the senior functionary responsible so as to
ensure that none of the complaints remain unresolved.

CRM Banking Benefits

In the absence of a unique identification, such as a Social Security number, SAS

helps identify group and customer level debt exposure. This benefits the bank in
many ways:

 The credit officer can view customer level debt exposure across all other
loans within the bank.
 The bank can reject customers who have a derogatory repayment in other
loans within the bank. On an average, every month the bank rejects up to 2
percent of applicants because of an existing derogatory repayment.
Assuming a probability of default and loss given default of 50 percent,
HDFC Bank is saving nearly 1 percent of its total annual disbursement from
potential credit losses.
 In accordance with regulatory guidelines, SAS helps identify standard
exposures of defaulted customers so the bank can initiate preventive
measures and provisions. On average 8-10 percent of HDFC Bank’s total
gross non-payment accounts (NPA) are related NPAs (meaning this
customer has another defaulted exposure).

CRM Banking Focuses on the Customer

CRM manages to places the customer at the focal point of the organization in order
to cater to his needs, satisfy him and thus maximize the profits of the organization.
Banking CRM understands the needs of the customer and integrates it with people,
technology, resources and business processes. It focuses on the existing data
available in the organization and uses it to improve its relationship with customers.
Banking CRM uses information and analytical tools to secure customer focus.
Thus it is completely essential that banks implement CRM in order to secure this.

Overall Profitability

CRM enables banks to give employee's better training that helps them face
customers easily. It achieves better infrastructure and ultimately contributes to
better overall performance. The byproducts of CRM banking solutions are
customer acquisition, retention and profitability. Banks that don't implement CRM
will undoubtedly find themselves with lesser profitability coupled with a sharp
decline in the number of customers.

Satisfied Customers

It is important to make a customer feel as if he / she is the only one - this will go a
long way in satisfying and retaining them. Bankers need a return on investment
and it has been proved that increase in customer satisfaction more than contributes
a fair share to ROI. The main value of CRM banking lies in satisfaction and
increased retention of customers.

Centralized Information

CRM banking solutions manage to clearly integrate people, processes and

technology. CRM banking provides banks with a holistic view of all bank
transactions and customer information as well and stores it in a single data
warehouse where it can be studied later.

CRM Banking Boosts Small Banks

Banking CRM software meets the needs of banks of all sizes in terms of attaining
the required accuracy and understanding of customers. Merely assuming that banks
that are considerably smaller in size have a better customer approach and are able
to deal with their customers in a better manner is wrong. They are just as much in
need of CRM aid as the others. Small banks on account of a limited amount of
money have had to realize that a large contribution to profits is directly the result
of good customer service. CRM makes sure that the bank delivers exactly what the
customer expects.

Customer Segregation

CRM enables a bank to see which customers are costing them and which are
bringing benefits. CRM provides them with the required analytical tools that will
to avail of the maximum returns. After this segregation is done CRM help them
focus on the importance of segregating these two and doing what is required easily
enables banks to increase their communication and cross-selling to their customers
effectively and efficiently
ANALYSIS

CRM aims to provide organizational effectiveness by reducing sales cycle and selling cost,
identifying markets and channels for expansion, and improving customer value, satisfaction ,
profitability, and retention.
While choosing CRM software, the COST is one of the important factors. The quality,
customizability, and flexibility of the software are few other factors considered.
An efficient and effective CRM model is one which answers what the different customer
segments are, who more likely to respond to a given offer is, which customers are the bank likely
to lose, which customer is most likely to default on credit cards, what the risk associated with
this loan applicant is.
The data warehouse is the first step in building an effective customer relationship management
(CRM) solution that will help banks such to overcome the danger of becoming increasingly
impersonal as business grows and customers are reduced to PIN numbers. All new private banks
are aware of this and are now putting in place the systems that will enable them to focus on
individuals. In the private sector - HDFC Bank have put in place the building blocks for an
elaborate CRM solution. Bank has implemented a CRM software with respect to its priority
banking offering for its high net worth clients, where the software carries out profiling and
analysis, contact management, data analysis and cross-selling.
In every organization, for successful implementation of CRM Training is provided. The cost of
training provided forms a small percentage of total cost. Generally, Banks prefer to provide
training by Train the trainer method. In the banking industry, generally, no resistance from the
employees is faced.
The biggest advantage that private banks brought to customers was anywhere-anytime-
banking. Customers no longer needed to dash out during lunch hour to queue up at counters to
withdraw money. But because of a large number of products like debit cards, demat accounts,
loans and credit cards an efficient effective CRM is required.
The Banks use SAS as well as the Ownership Model. They use the open and also the closed
model.
The software is implemented in phases and it takes months for the complete implementation of
the CRM. The cost of the software depends on the company and the industry.

CONCLUSION
Customer relationship management is a multifaceted process, mediated by a set of information
technologies that focuses on creating two-way exchanges with customers so that firms have an
intimate knowledge of their needs, wants, and buying patterns. In this way, CRM is intended to
help companies understand, as well as anticipate, the needs of current and potential
customers.CRM is a sound business strategy to identify the bank’s most profitable customers and
prospects, and devotes time and attention to expanding account relationships with those
customers through individualized marketing, re-pricing, discretionary decision making, and
customized service-all delivered through the various sales channels that the bank uses.CRM aims
to provide organizational effectiveness by reducing sales cycle and selling cost, identifying
markets and channels for expansion, and improving customer value, satisfaction, profitability,
and retention.
CRM helps to acquire new customers, retain existing customers and maximize their lifetime
value. This close relationship with customers requires a strong coordination between IT and
marketing departments to provide a long-term retention of selected customers.
With the growth of private banks in India, the biggest advantage brought to customers was any
where any time-banking. But over time as these banks introduced a number of new products like
debit cards, demat accounts, loans and credit cards the problems began to show. While operating
costs were low, customer grievances were increasing day by day. The banks responded to this by
moving over from a product-centric to customer-centric approach by installing CRM solutions
that enable them to recognize
customer needs before hand. Unlike an IT system which merely processes transactions, a CRM
system keeps track of a database of account holder and a historical database of various
transactions these account holders have entered into.This helped the customers to obtain
information from any branch about any of the accounts he holds with the bank without being
passed around from counter to counter.CRM helps in enhancing the customer’s ‘Life Time
Value’ by efficiently servicing the customer’s needs.
Greater satisfaction leads to customer advocacy. At the very least this helps the bank acquire
business from the customer’s family. More importantly, for the bank CRM solution helps to map
profitability of every individual customer rather than an individual account. An employee
manning the call centre can now get a unified view of all the relationships that a customer has
with the bank.

RECOMMENDATIONS
The recommendations are based on the basis of data collected through internet, Experts, Bank
officials and my colleagues:
 HDFC Bank are using Finacle,SFA,SAS as CRM software. The banks, in general, are using
Core Banking Software and not CRM software. They should use software like SAP or
PEOPLE SOFT which will help in handling large volume of data and will integrate seamlessly
with the IT and is customizable.
They should work on capturing faith of the existing customers. They should work on growing
the existing customers. Better CRM software can help in growing the existing customers,
increasing the customer base, acquiring new customers.
They need to implement a more effective CRM which requires a front-line information system
that shares relevant customer information across all interface units. Relational databases, data
warehousing and data mining tools are thus very valuable for CRM systems and solutions and
should be worked upon for better customer satisfaction and loyalty.
They need to find and implement the implementation tools to support interactive solutions for
customer profitability analysis, customer segmentation, demand generation, account
planning,opportunity management, contact management, integrated marketing communication,
customer care strategies, customer problem solving, virtual team management of large global
accounts, and measuring CRM performance would be the next level of solution sought by most
enterprises.
Customize CRM to a high degree so that they are able to handle a rapidly scaling call workload
without any disruption in services and allow call centre agents to have an “always connected”
view of the database.

LIMITAIONS OF THE STUDY

The report has been prepared on the basis of primary data collected by interactions with the bank
officials and experts of the industry and the secondary data. The report and my findings are
subjected to the following limitations:
The information shared by the officials of the bank may not be up to the mark.
2.The Branch officials may be biased.
3.The qualitative aspect of the benefits received by CRM implementation cannot be
measured.
4.The research conducted is confined to the Banks and their branches in delhi .For understanding
the financial implication of CRM in a bank.