The constantly evolving financial services market often finds it challenging to meet rising customer expectations. Besides, the highly competitive market has compelled organizations to work on building a robust customer relationship experience. 

This is where Customer Relationship Management (CRM) comes in. 

CRM offers a fully functional, modern, and customer-centric approach to service that helps organizations gain a competitive edge and win more business. Data also predicts that the global CRM market will reach a whopping $163.16 billion by 2030, growing at a CAGR of 13.9%. 

As financial services companies adapt to ever-evolving client preferences, and navigate intense competition, CRM has emerged as one of the key components in their toolkit.  

In this post, we will learn more about CRM in financial services, their features and the purpose it serves for the financial services sector.  

What is CRM for Financial Services? 

CRM in financial services refers to the set of technologies, strategies, and practices that financial institutions use to manage and analyze customer interactions and data throughout the customer lifecycle. 

The objectives of CRM for financial services are to enhance relationships with existing as well as potential clients, retain existing customers, and drive sales/revenue growth. 

Put simply, CRM for financial services is a multifaceted tool that incorporates a range of different functions, including sales and marketing automation, customer support, contact management, analytics, and more.  

These features allow financial service organizations to offer tailored financial solutions, anticipate clients’ needs more proactively, and deliver exceptional services to clients consistently. 

The Need for CRM in Financial Services 

Apart from capturing inquiries and managing interactions, CRM software for financial services gives adequate data and insights to help get the larger picture so that you can understand your clients and their unique financial needs more effectively. 

Here are some of the reasons to help you better understand the need for and importance of having a financial services CRM: 

The Need for CRM in Financial Services 

1. Streamline lead management 

From lead capture to follow-ups and funnel tracking, CRM can assist financial service institutions with effective lead and sales opportunity management. 

2. Access permissible customer details  

A financial services CRM offers you a complete view of your clients’ interactions, preferences, and transactions, which is a must for offering tailored services in banking and finance. 

3. Automate paperwork 

Evaluating loan applications, onboarding customers for a range of financial products can be conducted digitally through a CRM, saving tons of paperwork.  

4. Increase upsell and cross-sell 

Based on various attributes, relevant upselling and cross-selling campaigns can be sent out to customers to increase their LTV (Lifetime value) with a financial organization. 

5. Track sales and marketing campaigns 

CRM for financial services allows you to closely track and keep a watch on the performance of various campaigns and assess that are/are not working in your favour so that you can alter your sales and marketing strategies accordingly. 

6. Improved relationships 

Making the appropriate use of the data and insights offered by a CRM, financial advisors can enhance their connection with clients, ensuring better, stronger, and more reliable customer relationship. 

7. Effective data management 

A CRM can efficiently handle large volumes of customer data, ensuring that all information is organized and accessible when needed. 

With CRM data, financial services companies can offer personalized advices and build deeper relationships with them. 

Key Aspects of CRM and How They Can Help Streamline Financial Services Operations 

Here is a snapshot of the key features of a financial services CRM and how it can help strengthen financial services sales approach:

CRM features 

Benefits for the Financial Service Institution 

Lead and Customer management 

Easily manage your prospects’ and customers' information, including contact details, meetings, notes, and more 

Digital marketing 

Send newsletters, emails, SMS, WhatsApp, and other promotional marketing material to your clients 

Tasks management 

Helps you keep track of your work schedule and set reminders for important business tasks 

Mobile app 

Relationship managers can access their prospect details and onboard a customer through the mobile app. 

Performance dashboard 

Get performance intel on product, team, regions, and more. A CRM can even drill-down to activities level, giving you insights on operational bottle-necks. 

Benefits of CRM in Financial Services 

Here are some of the key benefits of CRM in financial services: 

1. Efficient processes 

CRM is a comprehensive, unified system that enables any employee to access customer profiles and make real-time updates to them. This kind of distributed system eliminates the instances of duplicate conversations while better understanding the customer’s situation and requirements. Also, CRM’s automation and analytics capabilities speed up various business processes. 

2. Better customer service 

CRM helps collate all customer information in one place to give financial service advisors the advantage of offering better, more tailored services and addressing common customer concerns much more effectively. This means that you have access to a comprehensive and holistic view of each client’s journey, including previous interactions, preferences, and larger financial goals. 

3. Increased sales 

A good CRM allows financial services institutions the opportunity to cross-sell their products by better understanding the behavior and past preferences of clients. Further, it offers the sales team a centralized platform to manage client interactions, leads, and opportunities. This promotes personalized engagement, reduces lengthy paperwork, and improves overall conversion rates by streamlining sales processes, leading to higher revenue and sales.  

Leverage CRM to Improve Efficiency 

A CRM system is an important software tool for banking and financial services companies to navigate their customer relationships more efficiently. By utilizing a robust CRM system, financial services companies can not only streamline their day-to-day operations but also enhance client satisfaction and drive sales and revenue growth for long-term financial success. 

If you are looking for powerful CRM software to strengthen your financial services institution, you can rely on LeadSquared. It offers a powerful solution for smoothening operations, managing leads, and effortlessly navigating end-to-end client interactions. 

With a range of exciting features, such as automated marketing, detailed reporting, and sales funnel management, we enable you to build long-lasting partnerships with your clients and achieve long-term financial success.  

To know more about LeadSquared, connect with us today and book a demo now. 

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