Information System Selection, acquisition and implementation in banks - Thesis Example

Today every bank is moving towards developing and maintaining customer relationship (Buttle, 1996). Managers have to look for areas where opportunities lie in retaining the customers. CRM is an option which banks can make use of so that they can rise beyond minimum advantages by creating real relationships with their customers. According to Gronroos (1994) relationships and foundation to the efficient growth and remodelling of new business philosophy, even though businesses have been taking care of relationships with their customers for many centuries.

An introduction to CRM: Customers in the past normally opted for those banks which had all the conveniences with regard to its location. But with the development of technology and banks providing facilities like net banking and ATMs customers no longer consider the location of the banks as a primary factor. This put pressure on banks with reference to competition and dynamic marketing facility which in turn contributed to the development of CRM in the financial sectors and specifically in banks.

When customers to the extend of at least 5% are retained it provides for an increase in profitability to the tune of 35% in banking business, 50% in insurance and brokerage, and 125% in the consumer credit card market. This is the reason that banks are now focussing on ways and means to retain their customers thereby increasing market share. Private Banks has conventionally considered themselves as exceptionally 'Customer Centric' extending.. According to Gronroos (1994) relationships and foundation to the efficient growth and remodelling of new business philosophy, even though businesses have been taking care of relationships with their customers for many centuries.

An introduction to CRM: Customers in the past normally opted for those banks which had all the conveniences with regard to its location. But with the development of technology and banks providing facilities like net banking and ATMs customers no longer consider the location of the banks as a primary factor. This put pressure on banks with reference to competition and dynamic marketing facility which in turn contributed to the development of CRM in the financial sectors and specifically in banks.

When customers to the extend of at least 5% are retained it provides for an increase in profitability to the tune of 35% in banking business, 50% in insurance and brokerage, and 125% in the consumer credit card market. This is the reason that banks are now focussing on ways and means to retain their customers thereby increasing market share. Private Banks has conventionally considered themselves as exceptionally 'Customer Centric' extending highly personalized services to the High Net Worth Customers.

The more affluent the customers are, the more challenging they are - and the clients in turn anticipate more and more from their banks. These wealthy customers expect their banks to understand what their wants and needs are. This helps in building the organization in particular the banks around serving those needs. The prearranged approach to CRM furnishes several gains to the bank, like having a distinctive and consistent customer experience, clear recognition of the organisational, technological and