Effect of eBanking on rural economy
On taking a closer look at the ongoing events in the banking domain, players have adopted a non-holistic approach to the growing concern towards client management and service by offering products and services which have been able to satisfy the needs of the banks completely.
But, it has been found that many retail banks have rated it as a problem area and displayed their disapproval towards it. They feel that this practice cannot continue for a long period of time. It is essential that banks are able prompt in their response to the individual clients’ needs by offering flexible, customized products that can be easily accessed via different channels. It also means that the stiff competition in the market needs to be countered by offering variety and unique product/solutions to create an impression on the clients.
But many at times, banks have displayed reluctance to foray into the banking CRM space which would be offering the front line branch official the ability to keep a close track of the clients apart from offering holistic product package. Moreover, understanding the requirements of the clients during the initial period of contact helps in the process of up selling and cross selling complete range of financial products and services.
In the past one decade, the worthy move of banking sector players from physical branch to e-branch has offered rich dividends. Now, banks in their operations have successfully touched a new space by moving beyond the teller’s window or behind the desk operations. Now, a mobile phone, PC or any other electronic device can be a banker as well. If we follow the reports, one can find that more than one-half of the retail banks’ clients make use of e-banking solutions. It has often found that a client after opening an account with the bank never pays visit to the branch. Now, the next big question which pops up is – How is it possible to raise the ROI on the eCustomer? And also is it possible to cross sell or even up sell to an unseen client?
It has been found that although the decision makers from banks completely understand the necessity of maintaining the branch process but at the same time needs to understand the growing needs and eCustomer base. It is believed that this growing gap is responsible for witnessing reluctance in the adoption of CRM tool. Many banking industry players are of the opinion that the expenses in regard to a CRM are huge despite being easily accessed by the front line officials.
So, is it possible that a CRM in the banking sector offer assistance to the retail outlets in raising their ROI? It has been found that the success of CRM in retail banking sector is heavily dependent on the measurable ROI within a quick time span. Furthermore, the expenses and the potential earning over a stipulated time span needs to be pre-defined. Only when this information is available, the return from a CRM solution can also be measured.
One of the important issues for physical retail banking is the consistent shift in peak periods. It is believed that the growing requirement for reallocation of idle or the uptapped resources from a branch in the peak periods have potential to bear positive effect on ROI. A CRM solution can prove helpful in shifting these resources via equal access to the client details. A process driven retail bank requires a CRM tool as it has the potential to –
- Successfully capturing the client data during the entry point into the banking system which is the branch. Ensuring that all client information and history becomes accessible which again permits the branch to strengthen the corporate identity of an organization.
- Offer quality details on every client interaction that can be viewed by the management team in the form of reports which again ensures better and improved analysis.
- Helping the marketing teams of banks to quickly identify client contacts on the basis of market segment and also target correspondence to those clients only with the right product or services.
- Making sure that the client experience within the system is consistent in its approach across varied channels.
It has been found that CRM in the banking sector also help integrate the electronic client identity into the firm as it is not necessary to have a face to cross sell or even up sell products. Moreover, information related to the new product launches can be provided via the e-marketing channels on the basis of the present eCustomer profile.
The core function of a CRM is to manage the clients apart from allowing the banks to take a close look into the complete range of products/services provided by the institution. A CRM helps categorizing the customer profile which again helps in offering the most profitable product/service to the prospective or existing client both.