Changing of CRM Practices in Evolving World in Banking Sector
Authors:
1. Anya Asthana
Bachelor of Business Administration
Amity Business School
Amity University Uttar Pradesh Lucknow Campus
2. Dr. Sabeeha Fatima
Assistant Professor
Amity Business School
Amity University Uttar Pradesh Lucknow Campus
Introduction
Customer Relationship Management (CRM) encompasses the strategies, technologies, and practices employed by banks to oversee and analyse customer interactions throughout their lifecycle. The primary objective of CRM is to boost customer satisfaction, enhance retention, and foster business growth by delivering personalized services. In the banking industry, where customer trust and loyalty are paramount, CRM is vital for comprehending customer needs, optimizing service delivery, and nurturing long-term relationships. Effective CRM strategies enable banks to streamline communication, monitor customer preferences, and offer customized financial solutions, resulting in improved customer experiences and increased profitability.
Historically, CRM in banking depended on manual record-keeping, in-person interactions, and dedicated relationship managers. Banks kept physical records of customer transactions and interactions, which made data retrieval cumbersome and inefficient. Customer service was largely conducted through in-branch visits and call centers, offering limited personalization. The emphasis was on delivering general banking services rather than engaging proactively with customers. Although this method facilitated the development of personal relationships, it lacked the efficiency and scalability necessary to manage a growing customer base in a highly competitive environment.
As digital banking has emerged and customer expectations have evolved, traditional CRM methods have proven inadequate. Contemporary banking necessitates a more data-driven, technology-enhanced approach to customer relationship management. This research seeks to investigate the evolution of CRM in banking, emphasizing the shift from manual processes to digital solutions driven by artificial intelligence (AI), big data, and cloud computing. It explores how banks are utilizing CRM technologies to improve customer engagement, enhance service delivery, and ensure data security. This study is particularly pertinent in today’s banking landscape, where digital transformation is redefining the industry.
