While sleek websites and mobile apps with features like voice and facial recognition are typically at the forefront of digital transformation in the banking industry, we shouldn’t forget about the tangible benefits that CRM systems can provide to banks. While technology is evolving, many banks still lag behind in digital transformation, operating with highly manual processes, cumbersome tracking mechanisms such as excel spreadsheets, and inefficient ways of connecting with their customer base.
Customer Relationship Management systems (CRM) manage all relationships and interactions with existing bank customers and potential clients with one simple goal: Improving business relationships. CRM systems help you stay connected to customers, streamline processes, and improve profitability. They typically touch multiple business processes where both customers and internal users are involved and function as an archive for data which can be beneficial during regulatory exams.
Most banks are functioning without CRM software in place even though there are several business processes that could benefit from automation. In the absence of a CRM system, these processes require significant manpower to run. In fact, the lack of automation could result in many issues including compliance breaches, reputational risk, customer losses, as well as loan losses. But more importantly, some of your most highly compensated resources are spending time managing these processes, such as commercial lenders, portfolio mangers, and credit analysts — human capital that could be used improve customer experience and influence business results.
If you’re one of the banks not using a CRM system yet, here are a few of the benefits you may be missing:
Microsoft Dynamics 365 is one of the many CRM systems available to banks. The system allows you to segment customer data and get a clearer understanding of the client’s financial journey. Integration points with core systems also help bring in data about risk behaviors like poor credit score, late payments, and many others resulting in improved regulatory compliance and increased profitability. Role-based permissions help keep customer data secure.
Most business lenders worry about two things:
On the flip side, business borrowers have similar worries. In a 2016 Small Business Credit Survey completed by the Federal Reserve, applicants were less worried about rates and repayment terms, citing higher dissatisfaction about the credit process they encountered while securing their loan.
What’s core to both cases? Manual business processes, poor communication, and a lack of transparency taking business bankers away from spending time on the one thing that matters the most: helping the client.
CRM systems also provide a framework for banks to dig in and fine tune challenging operational workflows. Virtual Loan Assistant (VLA) is an example of a CRM-based solution designed for banks with commercial lending operations. Built using Microsoft’s Power Platform, it solves two main pain points of the credit process: collecting financial documents and increasing transparency across the organization by automating key workflows, sending triggered notifications to customers and third parties, personalizing work queues, and providing robust data dashboards for the team which automates the credit review process.
Virtual Loan Assistant stores all data on Microsoft’s secure cloud platform and can be integrated with third party apps, including core processing systems like Jack Henry, FISERV, and FIS.
Learn more about Virtual Loan Assistant
This is just one example of how CRM systems can help banks. Other industries can benefit too.
Read more about CRM systems in other industries
If you’re among the many banks with or without commercial lending operations who have yet to adopt a CRM system, but unsure where to start to find that best-fit, the first step is easy: Consult a CRM system implementation expert. A CRM implementation partner can help you define your existing business processes and needs – and take you through the subsequent steps to choose and implement the right solution to support your operations.
When evaluating potential partners, it’s important to look for a one-stop shop who can guide you through the entire process from start to finish, including discovery, design, implementation, customization, integration, and training.
Integrating Microsoft Dynamics 365 with existing banking systems and third-party applications is generally a seamless process, thanks to the platform’s extensive connector library and robust APIs. However, there can be challenges and considerations:
To address these challenges, Microsoft Dynamics 365 provides several features:
Implementing a CRM system can significantly improve manual business processes, communication, and transparency in commercial lending operations. Here’s how:
Improving Manual Business Processes: CRM systems can automate repetitive tasks, such as sending routine marketing emails or tracking metrics, which can increase the productivity of sales, marketing, and customer service teams. For example, Wells Fargo uses its CRM platform to keep all its services, including banking, mortgages, investing, and credit cards, in sync.
Enhancing Communication: CRM systems provide an interface for your team to interact with one another and for your team in customer-facing roles to interact with external parties in-app. This can increase visibility and organizational transparency, leading to improved teamwork and ensuring that no opportunities fall through the cracks.
Increasing Transparency: CRM systems consolidate data silos from branches, advisors, and back systems to create a unified customer view. This can lead to improved cross-sell conversions by targeting the right time to offer additional products or promotions.
CRM systems have also directly led to shorter sales cycles, improved client support, and increased transparency in the credit process for banks. For instance:
Shorter Sales Cycles: CRM systems can shorten sales cycles and improve forecast accuracy by utilizing automated workflows and repeatable sales processes. They can also help automate many tasks, including lead assignment, tracking metrics, and dialing and logging phone calls.
Improved Client Support: CRM systems can result in higher client support as a result of automated cross-department collaboration, follow-ups, and escalations. Account relationships can be handed over seamlessly in the event of lender turnover.
Increased Transparency in the Credit Process: CRM systems like Microsoft Dynamics 365 allow you to segment customer data and get a clearer understanding of the client’s financial journey. Integration points with core systems also help bring in data about risk behaviors like poor credit score, late payments, and many others, resulting in improved regulatory compliance and increased profitability.
CRM systems ensure the protection of sensitive customer information through several measures:
Specifically, role-based permissions in systems like Microsoft Dynamics 365 contribute to maintaining data security and compliance with banking regulations in the following ways:
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