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Benefits of CRM in Investment Banking

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CRM – Customer Relationship Management an effective way of managing interactions between the company and its clients and strengthening relationships. There are multiple advantages of CRM in the banking sector however we will be looking specifically at investment banking. Investment bankers act as intermediaries between the investors and businesses which involves dealing with complex financial transactions and building data rich sales reports. Hence keeping a CRM system in banking can help investment bankers manage their customer relationship better by tracking the entire deal cycle.

Let’s take a  look at some of the reasons why CRM is essential in investment banking: 

Effective management of data

CRM is crucial for banks to organize mass client data, from their contact details to the products and services that are being used by their clients. It allows data to be stored in one place with easy and secure access and management. Instead of storing client data in different databases, CRMs allow everything to be managed under one system resulting in effective time management. CRM in banks consolidates all client information and allows employees to capture all the interactions that take place between the bank and its client, providing a single view of each customer account which can include their last ATM transactions, loan details, as well as entire deal cycles. This makes it easier to communicate with clients and understand their needs and requirements. Whenever a client calls the bank, everything is stored and recorded in the CRM database, from the conversation to the contact information shared during the call. This means that whenever the same client calls again, the bank representative will not have to fetch their data or check different sources of information. All the details stored against the client will appear automatically which will save a lot of time as well as make the client feel valued. For instance, if a customer has previously inquired about wealth management, the representative will immediately know what services to offer them. 

Valuable Insights

Valuable report making is one of the major challenges faced by large organizations in the banking sector due to the complexity of data being used. Banking CRMs allow compound data to be compiled into multiple reports enabling seamless use of data. Customers can also be classified into different segments based on their demographics, interests, behavioral patterns, services and products that are being used etc…making it easier to reach out for promotional purposes i.e. additional services or products. Through CRM in banks, employees will have access to existing clients’ past interactions with the banks 

This helps investment bankers to gather valuable insights about customers and their patterns which can be used to better analyze data and optimize future strategies and campaigns; eventually resulting in customer satisfaction. 

Personalized solutions

CRM gives banks a 360 – degree view of their customer journeys, starting from the first interaction between the bank and the potential client to the final touchpoint of closing the deal. Each touchpoint is tracked and monitored within the CRM system which helps banks tailor their services to specific needs and requirements of their clients. Offering personalized services and products will eventually make clients trust you and your services; this is when you can start upselling and cross-selling. Once you’ve gained a client’s trust, there are higher chances of conversion to persuade them to avail any additional services offered by the bank. Such as Salesforce, one of the most popular CRM tools, offers customized CRM services for different industries. Investment Banks can benefit from this and get customized CRM software to best suit their needs. 

Increased Productivity

Investment banking can be very pressurizing as it involves working with complex data and big numbers as well as making high stake decisions where finding data from different sources can consume a lot of time and effort. Using the right Banking CRM software can save you a lot of time as all customer data and information can be retrieved under one roof resulting in higher employee productivity. With CRMs, daily tasks can be automated where repetitive, tedious tasks will be eliminated which means that employees are most likely to leverage that time to work on more valuable tasks that can lead to conversions and growth. Popular CRM tools such as SugarCRM also have multiple automation features such as marketing automation features enabling organizations to prioritize leads based on the level of engagement. Additionally, CRM helps you track and assess real-time data, which can help departments in making swift decisions. In Investment banks, important clients with upgraded memberships can be prioritized so that their queries are answered first. For example, if a loyal customer who has purchased additional services with upgraded membership has sent an urgent email to the bank and another new customers emails enquiring about the bank’s products and services; through SugarCRM you can generate automated responses for those inquiring about the services and products and choose to prioritize urgent emails instead. 

Customer Retention

Investment banks operate to help institutional clients raise capital and if customers are not satisfied with your financial consultation and services, there are chances they will switch to competitors. The multiple functions of CRM software can play a very crucial role in satisfying customers and retaining them. Responding to customer queries, giving them the best solutions based on their needs as well as offering personalized solutions can really help retain valuable clients i.e. Salesforce offers multiple customized CRM functions which includes additional tabs, reports as well as workflows. If the client feels valued where all their banking needs and requirements are being met, they are very less likely to switch to another bank. Having a good CRM can help investment banks retain loyal customers with consistency where responses can be automated, making them feel valued. Also, with insights into consumer behaviors, emails and messages can be tailored to an individual’s needs instead of sending out the same emails to multiple clients leading to stronger relationships with clients. 

Final Thoughts

Investment Banking requires an effective CRM to organize and manage its complex data. Salesforce and SugarCRM are some of the leading CRM tools being used by medium to large sized organizations worldwide due to the extensive features included in the tool; from data rich sales and marketing reports to multiple integration options allowing you to view all valuable data and information in a single plan. These platforms are highly customizable which means that you can tailor the platform as per your organization’s needs. 

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