CRM IN BANKING: PERSPECTIVES AND INSIGHTS FROM INDIAN RURAL CUSTOMERS 69 ARUN KUMAR, DEEPALI SINGH & P. ACHARYA service and its delivery, the bank carved out a massive CRM program. Pensioners, who constitute a large chunk of SBI customer group. crm in sbi - Download as Powerpoint Presentation .ppt /.pptx), PDF File CRM in bank. make call centers more efficient. and increase customer revenues.
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Effectiveness of customer relationship management in State bank of India
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The author s are supposed to follow the references as per following: Double quotation marks are used for titles of journal articles, book chapters, dissertations, reports, working papers, unpublished material, etc. Credit risk management should therefore be separated form and sufficiently be independent of the business lines.
The choice of appropriate strategies for control of credit risk by individual banks depends on their priorities and risk-appetites. The major research findings are based on the primary data.
The date has been collected by using elaborate questionnaires for bank managers working in State Bank of India of Visakhapatnam zone. With the thinning of spreads in the deregulated and liberalized economy, risk management has become all the more crucial.
So proper mechanism should be put in place for anticipation and identification of risks, together with a suitable mechanism to deal with such risks in an efficient and pro-active manner. Majority of the respondents strongly felt that the system followed in the banks need a review in term of simplifying various forms used and procedures followed for sanctioning loan.
The Basel Committee developed a simple risk measurement framework that assigned all bank assets to one of four risk-weighting categories, ranging from zero to per cent, depending on the credit risk of the borrower. Thus, the Basel Committee is already working on the scope of application of the Accord, capital and capital adequacy, risk exposure and assessment. One of the primary reasons for this has been the lack of effective Credit Risk Management systems and practices in Indian banks.
With an increasingly competitive and volatile banking environment here to stay, a comprehensive and integrated risk management system will soon become synonymous with survival for banks. To examine credit approval process in State Bank of India. To study the risk control strategies followed by the managers. To suggest appropriate measures to SBI.
The primary data for the study are collected by using elaborate questionnaires for bank managers working in State Bank of India of Visakhapatnam zone.
The data on risk management perception and practices relating to the credit risk management, risk control strategies and credit approval process were obtained through responses to questionnaires and in personal interviews with senior credit, treasury executives and bank managers of State Bank of India. The study has taken into consideration of bank managers in State Bank of India of Visakhapatnam zone. The study covered the various Mandalas in Visakhapatnam zone.CRM IN BANKING SECTOR
The sample is drawn from the banks which are spread over the zone. The total sample of 40 respondents was selected the respondent managers by using convenient random sampling technique. Judging whether a unit is able to generate sufficient cash flows from internal operations to service the debt. Secondly, such a document helps SBI in maintaining uniformity and consistency of standards in granting credit across the organization.
But in the competitive market, you can get the customer but the more difficult is to retain the customers, and this can only be done if we satisfy customers from head to toe. If we will not satisfy the customers then they will leave our organization and join other.
Today if the organization has the largest customer base then it may be possible it cannot provide the best services to all these customers.
So I am working on the project of the effectiveness of customer relationship management in SBI bank. The aim of my study is to determine how this bank has the largest customer base and how it is providing the best services to the customers. How it is providing the services individual to each customer irrespective of whole customers.
In last to find that the customer is satisfy from these various products and services of bank, from their dealings, their facilities provided, their behavior with the customers etc.? It was very difficult to actually take out relevant information from the Comparative Study with SBI were very hesitant to let us meet the company. If cash flows are predictable it is simply a problem of minimizing the total costs — the transaction cost and the opportunity cost.
It has different types of Saving accounts, Current accounts, Loans, and Investment proposals etc. Going further, most of the Banks have invested in technology enabled Customer Relationship Management Software to utilise CBS generated customer information for enhancing business opportunities, access to customers and support.
Although, at a nascent stage it is developing swiftly. Customer Relationship Management is the integration of these two cornerstones of Indian banking viz. It has a potential to bring about dynamic changes in marketing practices of banks in near future, with the objective of business growth through managing customers as assets, Systematically collecting, analysing and disseminating customer information and use of this customer information for acquiring, retaining and better servicing customers.
An understanding of the current status of the CRM initiative in majority of banks suggests that only a minuscule of the potential of CRM has been realised.
The key impediment is the lack of understanding and acceptance of CRM as an organisation wide strategy and need for reorientation of organisation structure to adopt this.
Customer Relationship Management in Banking Sector
The paper attempts to investigate these issues and suggests a framework for reaping the benefits of this investment in CRM by various banks. CRM — Conceptual framework CRM is the strategy for building, managing and strengthening loyal and long-lasting customer relationships. CRM is a customer centric approach based on customer insight. It can also be described as a business strategy comprised of process, organisational and technical change to better manage business around customer behaviours.
Operation CRM — In this, CRM software packages are used to track and efficiently organise inbound and outbound interactions with customers including the management of marketing campaigns and call centres.
Operational CRM supports frontline processes in sales, marketing and customer service, automating communications and interactions with the customers. The major benefits of operational CRM to banks are: It involves the use of data analysis to extract knowledge for optimising customer relationships.
The major benefits of Analytical CRM to banks are: Collaborative CRM — These involve systems facilitating customers to perform services on their own through a variety of communication and interactive channels. It brings people process and data together and enables channelling of data and information appropriately to bank staff for proactive decision making and enhanced informed customer service and support activities.
It provides a means of information sharing to all concerned in timely manner and includes customer as a creator of service. Global scenario Worldwide banks have explored and realised the benefits of CRM in a variety of ways.
Different banks have implemented the philosophy in their own different way. A few illustrations will give a glimpse of the global scenario with respect to CRM in Banking. Royal Bank of Canada utilised CRM to develop models of assessment of customer profitability and life time value.
These were then included in determining customer decisions like — Customised Marketing campaign, establishing service levels, segmentation, targeting, product design and pricing. Wells Fargo Bank renowned for leadership in service and convenience to varied customer segments focused on customer service through CRM.
Application of CRM enabled better integration of customer information and service applications to assist representatives of customer sales and services to easily provide a one-stop-shop for any banking service or transaction.
Using CRM, Wells Fargo takes full advantage of available customer information to offer customer the choice, convenience and price benefits so that they give the Bank, all their business. Indian scenario Although significance of Relationship Marketing practices and optimising and maintaining customer relationships across diverse customer segments has been realised and practiced by all banks in India, the technology enabled CRM is still at a developing stage. Different Banks are at different levels of CRM adoption and implementation and majority of them can be considered to be at preliminary stages.
Also SMS alerts at various significant customer service events are proliferating.