CRM
(Non Banking Financial Services)
Presentation by – Ravi Gupta

Introduction
Today, many financial services organizations are rushing to become more customer focused. A key
component of many initiatives is the implementation of Customer Relationship Management (CRM)
software. Our research has highlighted that most institutions take a rather narrow view of CRM and as
such, benefits have been limited. While second generation CRM has emerged to embrace the total
organization (hence Enterprise CRM), success in general has still not been widespread. In the paper, a
framework is presented which is based on incorporating business activities, channel management,
relationship management and back office/front-office integration within a customer centric strategy.
Non-Banks continue to face stiff revenue targets problem spread across too many stakeholders. Banks'
stakeholders struggle to deal with a vast number of departments, systems and geographies.
The pressures of competitive and dynamic markets have contributed to the growth of CRM in the
financial services: previous reviews and analysis suggests that a 5% increase in customer retention can
increase profitability by 35% in banking business, 50% in insurance and brokerage, and 125% in the
consumer credit card market. Private banks have traditionally viewed themselves as exceedingly
’customer centric' offering what they believe to be highly personalized services to the high net worth
customers.

What are the concept & benefits of CRM in NBFC
 Automated End-to-End Lending Operation.
 Scalable Platform.
 Integrated accounting engine and powerful rule engine.
 Easy Tracking.
 Boosted Sales.
 Increased Lead Conversion.
 Personalized Customer Journeys.
 Increased Productivity.
 More Efficient Communication.
 Inter-Department Data Tracking.
 Better Service.
 Improved Customer Experience.
 Increased Customer Loyalty.

Challenges
The challenges are many. But few of them have been cited below as :
 Creating an intelligent, unified view of customers and their needs.
 Identifying and cross-selling products, from multiple repositories & systems.
 Assisting workforce in achieving higher targets with coordination of efforts.
 A single window to view end-to-end processes that spans across systems and enforce TAT/SLA
adherence.
 Converge multiple, disjoint, independent campaigns across products, while providing visibility
across channels.
 Reliably coordinate, collaborate and take action over customer complaints, across channels to
ensure fast & accurate resolutions.
 Reduce process cost and wastage while conforming to compliance and audit standards.
 Real-time insights into processes with intelligent reports for proactive actions.

Importance Of CRM
 Customer relationship management is a broad approach for creating, maintaining and
expanding customer relationships. CRM is the business strategy that aims to understand,
anticipate, manage and personalize the needs of an organization's current and potential
customers. At the heart of a perfect strategy is the creation of mutual value for all parties
involved in the business process. It is about creating a sustainable competitive advantage by
understanding, communicating, delivering and developing existing customer relationships in
addition to creating and keeping new customers. So the concept of product life cycle is
giving way to the concept of customer life cycle focusing on the development of products
and services that anticipate the future need of the existing customers and creating additional
services that extend existing customer relationships beyond transactions.

CRM Techniques used by Non-Banks in India
Non-Banks leveraging technology can develop innovative customer solutions to attain
growth with profitability within the framework of sound risk-management practices.
Techno-savvy non-banks are tapping into online services to initiate a new era in
relationship management to create one to one relationships as well as one to many
relationships to enhance their competitive advantage. Recent developments in critical areas
of IT, have changed the way banks are managing their customer relationships. 46 The
following are some of the latest e-CRM techniques used by non-banks in offering new
products and services to its customers.
 Net trading.
 Telebanking or Mobile trading.
 Computerized decision support system.
 E-mail.
 Computer networking.

Financial services industry trends
 The financial services industry is undergoing a period of sweeping changes. A
confluence of cultural, social, technological, and economic factors have come together
to create a period of uncertainty and change in financial services. But despite the
challenges posed by this uncertainty, it is also a period of huge opportunity for firms
that can address them. Financial services companies that are able to capitalize on the
right technologies to support their business strategies will be the ones that gain the
competitive advantage as we move further into the 21st century.
 ECRM- This is a new trend in CRM which exploits the power of internet. Electronic
Customer Relationship Management (ECRM) aims at developing and establishing all
CRM functions with the use of digital communication tools such as Email, chatrooms,
instant messaging, forums, etc.
ECRM is motivated by the ease of internet access from various computing devices such as
desktops, laptops, tablets, and smartphones.

Features of ECRM
 It enables the businesses to interact with their customers and employers using internet.
 ECRM offers seamless integration of CRM processes.
 ECRM is speedy and reliable.
 It is highly secured from threats.
Difference between CRM and ECRM
The following table highlights the differences between CRM and ECRM.

Future CRM Trends
Here are some upcoming trends the CRM solution vendors are following −
 Integrating Data from Multiple Channels.
 Handling Big Data.
 Shifting to Cloud-based CRM.
 Social CRM.
 The Mobile CRM is Expected to be Powerful.
 Using CRM data effectively.
 CRM Software Systems with Wearables.
 Creating Best Customer Experiences

Rethinking the role of technology
In the 1990s and 2000s, technology transformed the financial services industry with high-
speed and high-volume transaction automation, new and more powerful data analytics,
and innovations like electronic payments and transfers. Today a new wave of change is
underway, one driven by data integration, the proliferation of mobile devices and social
networks, and infrastructural innovations such as big data and cloud computing. In this new
era, business change and technology are inextricably entwined. Technology has enormous
potential to act as an engine of positive business change, opening up new opportunities
and driving a transformative focus on the customer experience. While on-premises
technology will always have a place in the enterprise, it’s the cloud that’s driving change
today–by enabling new ways of working and doing business through a new breed of
highly-flexible, globally-available technology services.
“The private banking and wealth management industry’s trusted adviser status must be
restored if it is to prosper sustainably.” – PWC 2013 Global Private Banking and Wealth
Management Survey

Here are 5 reasons why Smart technology is
important.
India is a very diversified & wide spread Market, and reaching people in rural areas is not
a easy task. Build a strong reachability by embracing evolving technologies and by
moving from legacy systems to Cloud & Artificial intelligence. that can assist NBFCs to
access customers effectively. This will help to expand the customer base and Cut down
operational costs.
-NBFCs in todays market have to be creative and offer products that suit the rapidly
changing requirements of consumers. A CRM system in lending business can help,
understand customer needs, Track leads with real time updates , increase awareness with
tailored automated messages & mails and build long lasting relationship with Customers.

To be continued..
 Lending companies in Today’s world have to be Agile & Secured, to be away from
frauds. Tools like Business process management will help you deploy defined rules for
lending and workflow processes for internal team to accept, reject, disburse loans and
collections management. From Loan origination to Loan servicing, all runs under
define rules and workflows by the senior management. This will save NBFC’s from
frauds and help build a fraud free customer base with efficient workflow.
 Competition is increasing in the NBFC market, as everyone is trying to understand
customers and needs. How you can be one step ahead of them? By learning lending
data efficiently with the help of AI, ML and Analytics , can help you track product
performance, Customer performance, customer choices, trends, Behavioral patterns in
lending and re-payment. A smart system like this will give you Informed Decisions,
new product ideas and strategies to grow your business network.

To be continued..
 Being in lockstep with technology also enables NBFCs to be compliant with new policies
and initiatives. RBI initiatives like Direct Benefit Transfer or Aadhaar Pay require extensive
use of smartphones and involve a lot of data. Setting up mobile-friendly platforms and
data capturing systems is beneficial not just for the customer but also for NBFCs.

Key areas of change.
Key areas of change –
Key areas of change that we see affecting financial services companies today include:
 Changing customer expectations and demographics.
 Challenges in maintaining growth and increasing profitability.
 The need to take advantage of growing social and mobile technologies.
 Increasing and changing regulatory compliance needs

Changing customer expectations and
demographics.
 Changes in the customer landscape are having a profound impact on financial services
institutions. Traditional customer satisfaction and loyalty initiatives, while important, are
not enough in the current environment. As a result, financial firms are going beyond
traditional measures of customer loyalty and satisfaction to focus on the customer
experience as a whole. Some of the key factors driving this change include:
 Changing demographics.
 Customer perception.
 Customer loyalty.

Challenges in maintaining growth and
increasing profitability.
Even as we move into a recovery phase, achieving sustainable growth remains a challenge for
financial companies. Multiple factors have had a negative impact on the bottom line, including
low interest rates, shrinking margins, cost pressures, and increased competition, particularly
from players outside the traditional financial services sphere. There are a number of key areas
where financial firms are using technology to increase profitability and attain growth, including:
 Customer experience management.
 Profitability analytics.
 Targeted offers and personalized service.
 Business agility.

The need to take advantage growing social
and mobile technologies.
The emergence of social networks, huge advances in mobile access, and the proliferation of
mobile devices have driven a sea change both in how companies work internally and
engage with customers. Younger workers and customers in particular expect a seamless
mobile and social experience in the workplace and outside it.
 Multi-channel experiences.
 Mobile access for employees.
 Social customer service.

Increasing and changing regulatory
compliance needs.
Regulation and compliance remain top themes in practically every survey of financial
services trends and priorities. Capgemini is just one of the many analyst firms
highlighting the importance that regulatory compliance has taken on today: “Firms are
investing in technology infrastructure for regulatory compliance and to gain a
competitive edge.
There’s a huge need for core technologies to facilitate compliance across systems,
including:
 The ability to audit interactions across channels, touch points, and repositories.
 Streamlining regulatory-required processes for consistency and speed.
 Role-based security and auditability of security and administrative activities.
 More unified data storage, search, and retrieval functions.

Gain a 360-degree view of the customer.
 Gain a 360-degree view of the customer Our vision begins with a holistic view of the
customer that enables you to fully understand your customers and their needs. With a
single system to track all your customer data and interactions, you give your advisors
and agents the information they need to deliver fast, personalized service. Open APIs
and commonly used technologies streamline integration of Microsoft Dynamics CRM
with back office systems like core banking, risk management, payments, financial
planning, underwriting and other systems

Create a framework for innovation.
 Finally, providing a flexible framework for ongoing technology innovation on premises
and in the cloud to support development of industry specific solutions will allow you to
rapidly respond to the changing needs of customers, and marketplace. Built-in
capabilities to support auditing and access control also help your organization meet
the complex needs of regulatory compliance.

Thank you.