FINANCIAL SERVICES

UNIT V
INTRODUCTION
Financial services refer to services
provided by the finance industry.
The finance industry encompasses a
broad range of organizations that
deal with the management of
money. Among these organizations
are banks, credit card companies,
insurance companies, consumer
finance companies, stock
brokerages, investment funds and
some government sponsored
enterprises.
TYPES OF FINANCIAL SERVICES
Banking
services
Issuance of
checkbooks
Provide
personal
loans,
commercial
loans
ATMs
Foreign
exchange
services
Currency
Exchange
Foreign
Currency
Banking
Wire
transfer
Investment
services
Asset
manageme
nt
Hedge fund
manageme
nt
Insurance
Insurance
brokerage
Reinsurance
Extending CRM into multiple media means integrating the front office with
different communication channels
Factors affecting the adoption of new
financial services
IMPACT OF CRM
Benefits of Using CRM in
Banking Industry
Provide better customer balance
Increase customer revival
Discover new customers
Helps sales staff close deals faster
Making banking operation more
efficient
Simplify marketing and sales
process
Organization Without CRM
Unsatisfied Customer
Low customer retention
Low sales
In efficient Banking
Operations
Complexity
CRM Strategies Adopted in Banking Sector

One-Stop Financial Supermarket
Right service is offered to right customers
Increasing the Number of Delivery Channels to the Customers
Shifting customer access to lower cost channels can help in
bring down the operating cost
The Real Time Gross Settlement (RTGS), CBS (Core Banking
Solution)
Customer Value Management
The main thrust of CRM is to develop new products, render
value creation, gain market leadership and spread risks and
vulnerabilities besides facing competition
Utility of CRM in Banks
Campa
ign
Manag
ement
Custo
mer
Inform
ation
Consol
idation
Market
ing
Encycl
opedia
3 6 0-
degree
view
of
compa
ny
Person
alized
sales
home
page
Lead
and
Opport
unity
Manag
ement
Activit
y
Manag
ement
Contac
t
Center
Operat
ional
Ineffici
ency
Remov
al
CRM Business Model
Customer management assessment tool
Assessments bring together a range of tools and methodologies that provide a
detailed, objective, benchmarked assessment of an organizations capability to
effectively manage its customers.
Financial Services

Financial Services Institutions:
Retail, corporate, investment and private banks
Mutual funds, investment trusts
Personal and group pensions
Life and general insurance and reinsurance companies
Credit card issuers
Specialist lending companies
Stock exchanges
Leasing companies
Government saving institutions
Brokers and agents
Financial Services Environment:
A number of external forces have exerted influence on
the sector, including:
1- Socio-economic factors: play an important rule in
determining the demand for financial services. Ex.
Changes in the distribution of income and wealth
and patterns of consumption.
2- Regulatory environment: Regulations have played a
major role in shaping the behavior of suppliers and
offering increased protection to consumers. Serve to
strengthen the procedures and practices already set
in place.
Financial Services Environment:
3- Technology: Traditionally paper-based systems have
become fully automated, providing greater flexibility
and scope for expansion. Without a doubt,
technology holds the key to future long-term success
for financial institutions, from innovative distribution
channels, which are both cost efficient and effective
at delivering customer service, to customer
databases, which enable better use of target
marketing.