Customer relationship management (CRM) software has become vital for financial services businesses to engage, acquire, and retain customers. It enables companies to create a consistent, single view of their customers across all front-office employees and enables omnichannel/cross-channel customer experiences.

New entrants and horizontal CRM providers launching industry-specific solutions, has caused an increasing number of options available for small to midsize technology deployments or specialised use cases.

In this blog post, we will discuss four ways CRM adds value to financial services, including improving customer experiences, empowering employees, meeting growing customer demand, and embracing automation. As the industry evolves, we expect to see further innovation and competition in this exciting and established technology market.

What is CRM software?

In a recent report, titled The Financial Services CRM Landscape, Forrester defines financial services CRM as a purpose-fit for financial services businesses to create insights into customer activity and behaviour and manage customer experience, marketing, sales, and service.

CRM solutions are available on infrastructures that support regulatory compliance requirements and enable personalised experiences, customer onboarding, customer service, marketing effectiveness, lead-to-sales conversion, and employee productivity.

Financial services CRM is an established technology market

The financial services industry has long been a major player in the CRM technology market, and it continues to be an area of focus for both established and emerging vendors. While a handful of global market leaders still dominate the field, most vendors are experiencing high double-digit growth in both customer volume and revenue.

With the advent of new entrants and horizontal CRM providers launching industry-specific solutions, there is an increasing number of options available for small to midsize deployments or specialised use cases.

Salesforce, in particular, has established itself as a major player in financial services CRM, with industry-specific solutions accounting for over $3.8 billion of annual recurring revenue.

As the industry evolves, we expect to see further innovation and competition in this exciting and established technology market.

4 ways CRM adds value to financial services

#1 Improve customer experiences

Customer experience (CX) is a key competitive differentiator in today’s business landscape. According to Forrester’s 2023 data, financial services business and technology professionals recognise the importance of improving CX and are taking action to do so. CRM systems are critical in this regard, as they help companies create a consistent, single view of their customers across all front-office employees and enable omnichannel/cross-channel customer experiences.

CRM tools, such as contact centre management, customer self-service, and email, chat, and video communication, help companies develop and nurture customer relationships.

Our work with TIME Investments is a great example of this. The redk team replaced their outdated systems with a streamlined roadmap for how the organisation wanted to work. We helped TIME optimise customer and partner operations, streamline front office operations, and create more personalised customer relationships. We implemented three Salesforce programs (Salesforce B2B marketing, Salesforce Sales Cloud, and Salesforce Service Cloud) to carry out a digital transformation that will allow TIME to grow sustainably into the future.

Additionally, CRM systems offer functionalities like customer segmentation and predictive analytics, which aid in lead generation, prioritisation, prospecting and outreach, and churn prevention, all of which help attract, acquire, and retain customers.

#2 Empower employees

Here at redk, we’re all about finding CRM solutions to empower your team. CRM solutions improve customer experiences and empower employees, which is critical to achieving high-quality customer service. With the right digital tools and customer insights, your team can work more smartly and efficiently than ever before. Employees who engage with customers and prospects are at the heart of any great CX and ultimately win their business.

CRM solutions provide bank employees with resources that enable them to perform well, including account opening, guided loan applications, lead generation and prioritisation, and prospecting and outreach tools.

By automating routine tasks, CRM frees employees’ time to focus on more complex tasks requiring human expertise and decision-making.

In addition, CRM provides employees with a unified view of the customer’s interactions across multiple channels, allowing them to understand customer preferences, behaviour, and needs more effectively. Employees can deliver a personalised customer experience that fosters loyalty and retention with this information. The redk team can help you drive customer satisfaction while increasing engagement and customer service excellence with the new CRM system.

Furthermore, CRM enables employees to work more efficiently and collaboratively by providing a central repository of customer data, facilitating communication between departments, and reducing duplication of effort.

#3 Meet growing customer demand

The COVID-19 pandemic has accelerated the adoption of industry-specific CRM systems in the financial services sector. As companies quickly shifted to digitising experiences to stay competitive, offerings like virtual banking and digital account opening became a necessity. This market opportunity prompted vendors to release financial services-specific CRM solutions to support different banking, insurance, and wealth management scenarios.

Financial services-specific functionalities from major vendors are now commonplace as an alternative to customising a horizontal CRM for industry-specific use.

Financial services CRM systems can help institutions keep up with customer demand for digital and personalised experiences. They can also provide the regulatory and compliance capabilities to protect client data and meet industry standards by delivering tailored features and integrations for specific use cases. The availability of these specific CRM systems has helped financial services institutions better serve their customers while remaining competitive in a rapidly evolving digital landscape.

#4 Embrace automation

The financial services industry has been at the forefront of embracing automation through the use of CRM technology. At redk, we utilise the most advanced AI, ML, and RPA platforms to understand your customer response process thoroughly.

Intelligent automation is driving improved customer experience, revenue, security, and compliance.

Vendors offer a range of pre-packaged AI and insights scenarios within CRM and tooling to define new AI models and automate and optimise workflows. This helps customer-facing employees to follow regulations and engage with customers, freeing them from repetitive work so they can focus on the right task at the right time. Sales managers can proactively manage their sales operations by providing intelligence about their pipelines, forecasts, and territories.

However, the primary challenge for firms is poor user adoption and change management, as workflows and experiences must be customised to add value to each front-office worker.
Financial services CRM solutions provide efficient experiences that have been battle-tested for a particular vertical. The top disruptor in the financial services CRM market is next-generation AI, ML, and automation that are purpose-built for the needs of financial services.

Financial services CRM is evolving

CRM software has become essential for financial service businesses to attract, engage, and retain customers. CRM solutions empower employees, improve customer experiences, meet growing customer demand, and embrace automation. By using CRM, financial services businesses can improve their customer satisfaction and loyalty, increase employee productivity, and maintain regulatory compliance. The COVID-19 pandemic accelerated the adoption of industry-specific CRM systems in the financial services sector, and we expect to see further innovation and competition in this market as the industry continues to evolve. Get in touch today to learn more.