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CUSTOMER RELATIONSHIP MANAGEMENT (BANKING)

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WHY CRM IN BANKING ????

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Consumers largely select their banks based on how convenient is the location of bank to their homes or offices.

The pressures of competitive and dynamic markets have contributed to the growth of CRM in the Financial Services Sector. 

Analysis suggests that a 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.

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.

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INTRODUCTION

Traditionally, few people changed their banks unless serious problems occurred.

Today, financial institutions can no longer rely on these committed relationships or established marketing techniques to attract and retain customers.

The Internet revolution.

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Need for CRM in the banking industry

A Relationship-based Marketing approach has the following benefits: -

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

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

The longer a relationship continues, the better a bank can understand the customer.

Customers in long-term relationships are more comfortable with the service, the organization, methods and procedures.

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CRM- An investment?

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Private banking and CRM

Private Banks have traditionally viewed themselves as exceedingly 'Customer Centric' .

They believe in the concept of “The wealthier the customers, the more demanding they are”.

The first step towards successfully winning, of private banking is to understand what customers wants and needs are.

Their prime focus is to create differentiated customer experience.

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Customer experience

To be a credible player in the market, a private bank must be able to deliver this customer experience.

These are widely categorized in three sections they are :

The Basic Customer Experience.

The Segment-Specific Experience.

The Organization-Specific Experience.

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CRM software

As the financial market system is questioned and people are seeking for alternative way of doing business CRM might be effective in the following way:

Communicating with your customers.

Checking unusual movements on your account.

Providing tremendous opportunities to your clients.

Managing customer's questions flow.

Secure the banks business models .

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Gale Force CRM for Banking

Key Benefits of Implementing such CRM software for Banking:

360-Degree Client View.

Manage Leads & Opportunities.

Automate Team- and Role-based Processes.

Generate Executive Reports.

Regulatory Compliance & Security.

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EXAMPLES

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STATE BANK OF INDIA

Banking Subsidiaries - State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIr), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT).

Foreign Subsidiaries - State bank of India International (Mauritius) Ltd.,State Bank of India (California), State Bank of India (Canada) and INMB Bank Ltd, Lagos.

Non- banking Subsidiaries - SBI Capital Markets Ltd (SBICAP), SBI Funds Management Pvt Ltd (SBI FUNDS), SBI DFHI Ltd (SBI DFHI), SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) and SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

Joint ventures - SBI Life Insurance Company Ltd (SBI LIFE).

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STATE BANK OF INDIA OFFERS ITS PRODUCTS AND SERVICES IN DOMAINS LIKE -

Personal Banking. NRI Services. Agriculture. International. Corporate. SME. Domestic Treasury.

"SBI now provides your Account Balance and Transaction details over phone round-the-clock. Information on deposits & loan schemes and services also available. Call 1800112211 (tollfree from BSNL/MTNL) or 080-26599990."

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PUNJAB NATIONAL BANK

Punjab National Bank (PNB) is the second largest government-owned commercial bank in India.

It has more than 3.5 crore customers.

It has one of the largest branch networks in India.

The bank's assets for financial year 2007 were about US$60 billion.

It has introduced Money Gram remittance service in collaboration with Thomas Cook India Ltd and UAE Exchange & Financial Services Ltd.

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PRODUCTS AND SERVICES

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep, PNB Vidyarthi SF Account, PNB Mitra SF.

Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer.

Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Account, Mahabachat Schemes, Multi Benefit Deposit.

Scheme Credit Schemes - Flexible Housing Loan, Car Finanace, Personal Loan, Credit Cards.

Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers Welfare Trust.

Corporate Banking - Gold Card scheme for exporters, EXIM finance.

Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami, PNB Vikas Udhami

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ALLAHABAD BANK

In April 24, 1865, the Bank was founded at the confluence city of Allahabad by a group of Europeans.

In October, 1989, United Industrial Bank Ltd. merged with Allahabad Bank.

In February, 2007, the Bank opened its first overseas branch at Hong Kong.

In March 2007, bank's business crossed Rs.1,00,000 crores mark.

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SERVICES

All Ayushman Bima Yojana Cash Management Services Depository Services Visa Cum Debit Card Services Real Time Gross Settlement National Electronic Funds Transfer Gold Card Scheme For Exporters. Charter for MSME's Government Business Regional MSME care centers

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UNION BANK OF INDIA

Union Bank of India was inaugurated by the Father of the Nation, Mahatama Gandhi, on November 11, 1919.

It cater to all the sectors of the society, be it agriculture, industry, trade and commerce, services or infrastructure and rendering services, educational, housing and trade sector.

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SERVICES

Deposits Accounts Loans Cards Insurance Cash Management Service Mutual Funds Demat ATMs E Banking Or Online

Banking Remittance Service Bill Payment Service Tax Payment Service

Atm Banking Tele Banking Online Demat Trading Cash Management Services Mutual Funds Railway Tickets Booking 8% Tax Saving Bonds Public Provident Fund (PPF) Direct Tax Collection Central Excise and Service Tax

Collection Services Special Savings Schemes for Senior

Citizens

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THANK YOU