CUSTOMER RELATIONSHIP MANAGEMENT

IN THE INDIAN BANKING INDUSTRY

INTRODUCTION

In recent years, the banking industry around the world has been undergoing a rapid
transformation. In India also, the wave of deregulation of early 1990s has created
heightened competition and greater risk for banks and other financial intermediaries. The
cross-border flows and entry of new players and products have forced banks to adjust the
product-mix and undertake rapid changes in their processes and operations to remain
competitive. The deepening of technology has facilitated better tracking and fulfillment
of commitments, multiple delivery channels for customers and faster resolution of mis-
co-ordinations.

Unlike in the past, the banks today are market driven and market responsive. The top
concern in the mind of every bank's CEO is increasing or at least maintaining the market
share in every line of business against the backdrop of heightened competition. With the
entry of new players and multiple channels, customers (both corporate and retail) have
become more discerning and less "loyal" to banks. This makes it imperative that banks
provide best possible products and services to ensure customer satisfaction. To address
the challenge of retention of customers, there have been active efforts in the banking
circles to switch over to customer-centric business model. The success of such a model
depends upon the approach adopted by banks with respect to customer data management
and customer relationship management.

Over the years, Indian banks have expanded to cover a large geographic & functional
area to meet the developmental needs. They have been managing a world of information
about customers - their profiles, location, etc. They have a close relationship with their
customers and a good knowledge of their needs, requirements and cash positions. Though
this offers them a unique advantage, they face a fundamental problem.

During the period of planned economic development, the bank products were bought in
India and not sold. What our banks, especially those in the public sector lack are the
marketing attitude. Marketing is a customer-oriented operation. What is needed is the
effort on their part to improve their service image and exploit their large customer
information base effectively to communicate product availability. Achieving customer
focus requires leveraging existing customer information to gain a deeper insight into the
relationship a customer has with the institution, and improving customer service-related
processes so that the services are quick, error free and convenient for the customers.

Furthermore, banks need to have very strong in-house research and market intelligence
units in order to face the future challenges of competition, especially customer retention.
Marketing is a question of demand (customers) and supply (financial products &
services, customer services through various delivery channels). Both demand and supply
have to be understood in the context of geographic locations and competitor analysis to
undertake focused marketing (advertising) efforts. Focusing on region-specific
campaigns rather than national media campaigns would be a better strategy for a diverse
country like India.

Customer-centricity also implies increasing investment in technology. Throughout much

of the last decade, banks world-over have re-engineered their organizations to improve
efficiency and move customers to lower cost, automated channels, such as ATMs and
online banking. But this need not be the case.

As is proved by the experience, banks are now realizing that one of their best assets for
building profitable customer relationships especially in a developing country like India is
the branch-branches are in fact a key channel for customer retention and profit growth in
rural and semi-urban set up. However, to maximize the value of this resource, our banks
need to transform their branches from transaction processing centers into customer-
centric service centers. This transformation would help them achieve bottom line
business benefits by retaining the most profitable customers. Branches could also be used
to inform and educate customers about other, more efficient channels, to advise on and
sell new financial instruments like consumer loans, insurance products, mutual fund
products, etc.

There is a growing realization among Indian banks that it no longer pays to have a
"transaction-based" operating model. There are active efforts to develop a relationship-
oriented model of operations focusing on customer-centric services. The biggest
challenge our banks face today is to establish customer intimacy without which all other
efforts towards operational excellence are meaningless. The banks need to ensure through
their services that the customers come back to them. This is because a major chunk of
income for most of the banks comes from existing customers, rather than from new
customers.

Customer relationship management (CRM) solutions, if implemented and integrated

correctly, can help significantly in improving customer satisfaction levels. Data
warehousing can help in providing better transaction experiences for customers over
different transaction channels. This is because data warehousing helps bring all the
transactions coming from different channels under the same roof. Data mining helps
banks analyse and measure customer transaction patterns and behaviour. This can help a
lot in improving service levels and finding new business opportunities.
It must be noted, however, that customer-centric banking also involves many risks. The
banking industry world over is being thrust into a wild new world of privacy controversy.
The banks need to set up serious governance systems for privacy risk management. It
must be remembered that customer privacy issues threaten to compromise the use of
information technology which is at the very center of e-commerce and customer
relationship management - two areas which are crucial for banks' future.
The critical issue for banks is that they will not be able to safeguard customer privacy
completely without undermining the most exciting innovations in banking. These
innovations promise huge benefits, both for customers and providers. But to capture
them, financial services companies and their customers will have to make some critical
tradeoffs. When the stakes are so high, nothing can be left to chance, which is why banks
must immediately begin developing comprehensive approaches to the privacy issue.
The customer centric business models based on the applications of information
technology are sustainable only if the banks protect client confidentiality in the process -
which is the basic foundation of banking business.

TECHNOLOGY-BASED CRM

Technology plays the role of enabler in CRM deployment and allows firms to achieve
greater customization and better service at lower cost.
A review of academic and practitioners’ literature was done to develop a comprehensive
list of CRM practices. Please refer appendix I for the practices and their respective chief
sources. Going over to customer loyalty, Oliver (1999) defined it as a deeply held
commitment to re-buy or re-patronize a preferred product or service in the future despite
situation influence and marketing efforts having the potential to cause switching
behaviour. Thus, loyalty has both an attitudinal and behavioural dimension. Behavioural
loyalty will include examples like repeat purchase, word of mouth, etc while attitudinal
loyalty will comprise examples like trust or emotional attachment (Baumann et al.,
2005). Further, behavioural loyalty does not necessarily reflect attitudinal loyalty,
because there might exist other factors that prevent customers from defecting. Customer
loyalty has been additionally related to profit levels. Besides, customer loyalty is one of
the key objectives of CRM.

BACKGROUND

Relationship Marketing is the process of building long term mutually beneficial

relationship with the customers. The Financial Institutions in the developed countries are
using this marketing tool very effectively by taking full advantage of Information and
Communication Technologies. The Indian Banking Industry which was operating in a
bureaucratic style prior to 1991 had to undergo large scale transformation with the
opening up of the economy. The Sector has been facing unprecedented challenges with
the wave of liberalization, privatization and globalization of Indian Economy. Banks in
India are under intense pressure in today’s volatile market place. Steep competition,
globalization, growing customer demand and exposure to higher credit risks are forcing
the banks to find new ways of improving profitability. On the other hand, cost-cutting
measures have forced banks to manage operations with few Customers Relationship
Managers and Product Specialists. Industry consolidation also poses fresh challenges to
this sector.

Even today, most of the banks in India rely on the legacy of Customer Information
System. In such a scenario, it is difficult to have a complete customer view across
divisions. They face unprecedented challenges to sustain their growth path for survival.
The challenges include customer retention, reducing transaction costs, risk management
and Regulation Compliance. The result was a huge proliferation in customer’s choice.
The strategic tool that was chosen for aiding this process was Information Technology
and most of the banks went through adoption of various stages and forms of IT over the
years and the process is still continuing.

The rapid growth in Information Technology and its potential to serve the customers in a
new way awakened the marketers and enabled them to transform these challenges into
opportunities. Under these circumstances, customer satisfaction became an important
aspect of the business. The search for new strategies began to meet not only the high
expectations of customers but the need to retain them. The competitive world witnessed
many banks participating in the race to optimize their profits. It increased the pressure to
perform leading to adoption of advanced technology and better skilled work force.

Therefore, business model changed from bank-centric approach to customer-centric

approach. The customer became not only an essential but the most important part of the
business. The Service Sector has emerged as a key sector in Indian Economy. The
contribution from this sector to our Gross Domestic Product (GDP) is approximately
55%, as per the current year’s Budget Report (2008-09). The continuous growth of GDP
at 8% and above has become possible due to the good performance of this sector. In the
post - reforms era, there has been a sea change in the financial sector. In such a scenario,
the services have grown rapidly and the customer has been more often a purchaser of
services rather than a product.

The Financial Services is the backbone of service sector. This is important not only for
the banking sector but of the Indian economy as a whole. This is so because banking is a
catalyst and life of modern trade and commerce. It is an integral part of all the businesses
and social activities. This rapid transformation of services in the banking system has led
to the evolution of a highly competitive and complex market where there is a continuous
refinement of services. Hence the increased role of banking in India’s economic
development on the one hand and the changes in the business climate on the other has put
increased pressure on them. These changes are compelling the banks to reorganize
themselves in order to cope with the present conditions.

Now, the Financial Institutions are trying to provide all the services at the customer’s
doorstep. The customer has become the focal point either to develop or maintain stability
in the business. Every engagement with the customer is an opportunity to either develop
or destroy a customer’s faith in the Bank. The expectations of the customers have also
increased many fold. Intense competition among the banks has redefined the concept of
the entire banking system. The banks are looking for new ways not only to attract but
also to retain the customers and gain competitive advantage over their competitors. The
banks like other business organizations are deploying innovative sales techniques and
advanced marketing tools to gain supremacy.
EVOLUTION OF CRM

One of the important marketing tools in the developed countries is Relationship

Marketing. The CRM is a comprehensive approach for creating, maintaining and
expanding relationship with the customers. It has emerged as one of the most widely
prescribed solutions for diminishing market share and sluggish growth of many industries
in general and banking and financial sector in particular. CRM is a simple philosophy,
which places the customer at the heart of the business processes, activities and cultures
for improving customer satisfaction and maximizing profits. In one of the encompassing
definitions, CRM is described as “the establishment, development, maintenance, and
optimization of long term, mutually-valuable relationship between the customers and the
organizations. It is a comprehensive approach for creating, maintaining and expanding
relationship with the customers.

The concept of CRM is very important to the business sector. The essence of the business
has been described by Mr. Peter Drucker, the Management Guru as, “the purpose of the
business is to attract and retain a good customer”. Good Customer Service is the best
brand ambassador for any bank. The entire business process consists of highly integrated
efforts to discover, create, arouse and satisfy customer’s needs. The modern business has
realized it and is making all out efforts to become ‘customer-centric’ across the globe.

Hence, CRM is not a once-for-all affair but a continuous process. It is the way of carrying
out business covering all the aspects of the modern business. It is an integral approach of
dealing with customers by deploying the advanced information technology.

CRM is the Information Technology face of the business process that aims to establish
enduring and mutually-beneficial relationships with customers in order to drive customer
retention, value and profitability. It is meant for a common and equal good of the two
stakeholders-businesses and their customers. It calls for capturing pertinent data about the
prospective and current customers in respect of their buying pattern, shopping behavior
and usage habits. It represents the current philosophy that the businesses should be
customer oriented.

CRM is a tool for delivering a variety of marketing dreams such as:

 To target and serve customers on an individual basis. It permits one to one
 Marketing as opposed to mass marketing.
 It helps in establishing durable relationship with customers.
 It is to dis-intermediarize channels of the wasteful barriers and distortions.
 It helps in reducing marketing cost progressively.
TECHNOLOGICAL DEVELOPMENTS IN BANKING

Information technology and the communication networking systems have a crucial

bearing on the efficiency of money, capital and foreign exchange markets and have
manifold implications for the conduct of monetary policy. In India, banks as well as other
financial entities have entered the world of information technology and computer
networking with INFINET. The Indian Financial Network (INFINET), a wide area
satellite based network using VSAT technology, was jointly set up by the Reserve Bank
and Institute for Development and Research in Banking Technology (IDRBT) at
Hyderabad to facilitate connectivity within the financial sector. The network was
inaugurated in June 1999. It was established to serve as the communication backbone of
the proposed Integrated Payment and Settlement System (IPSS). The Reserve Bank
constituted National Payments Council in 1999-2000 to focus on the policy parameters
for developing an IPSS with a real time gross settlement (RTGS) system as the core.
INFINET initially comprised only the public sector banks were opened up for
participation by other categories of members. 26 public sector banks achieved the level of
70 per cent of business captured through computerisation by June 2001.
The Information Technology Act, 2000 has given legal recognition to creation, trans-
mission and retention of an electronic (or magnetic) data to be treated as valid proof in a
court of law, except in those areas, which continue to be governed by the provisions of
the Negotiable Instruments Act, 1881.

PRESENT STATUS OF COMPUTERISATION

Based on the norms worked out by Rangarajan Committee (II), 7827 branches of the
Public Sector banks were identified for full branch computerisation up to March 2000. It
was found with immense need of existing – computerized branches to be inter –
connected in order to provide better services to customers. Some of the Banks have
started inter-connecting their computerized branches using leased telephone lines or Very
Small Aperture Terminals (VSATS), creating better–centralised control and more
comprehensive service to customers. As of now, New Private Sector and Foreign Banks
have an edge over Public Sector Banks as far as implementation of technological
solutions is concerned. However, the latter are in the process of making huge investments
in technology. Services and products like "Anywhere Banking" "Tele-Banking" "Internet
banking" "Web Banking”, e-banking, e-commerce, e-business etc. have become the
buzzwords of the day and the Banks are trying to cope with the competition by offering
innovative and attractively packaged technology-based services to their customers.

Simultaneously, CRM helps in maintaining customer database and providing better

services. The present level of MIS covers, basically, information needed for control,
performance monitoring, decision making etc. and encompasses most activities in
administrative offices like processing of statutory returns under Reserve Bank of India
Act, monthly/quarterly performance reports from branches, credit information personnel
inventory, provident fund accounting, profit and loss accounts, cash and investment
management, stationery stock accounting, and branch house keeping etc.
LATEST STATUS (SOURCE: NASSCOM)

Total number of branches in India 45,837

No. of branches partially computerized 13,802
No. of fully computerised branches 5,514
No. of PCs/Nodes at banks 95,090
Total ATMs installed at corporate customer 1,202
sites installed
Debit cards issued 10,14,400
Credit cards issued 90,050
Branches covered under RBI's EFT scheme 3,944
Branches connected to SWIFT 680

ENTERPRISE RESOURCE PLANNING (ERP):

With the allure of the ERP a new mantra has taken in corporate world that is Customer
Relationship Management (CRM) even banks are not left affected by it as are one of the
core service sector industry engaged in the development of the nation. Until recently,
most CRM software focused on simplifying the organization and management of
customer information. Such software, called operational CRM, focuses on creating a
customer database that presents a consistent picture of the customer’s relationship with
the company and providing that information in specific applications. Data mining can
help to select the right prospects on whom to focus, offer the right additional products to
your existing customers and identify good customers who may be about to leave. This
results in improved revenue because of a greatly improved ability to respond to each
individual contact in the best way and reduced costs due to properly allocated resources.
CRM applications that use data mining are called analytic CRM. This paper describes the
various aspects of analytic CRM and E-Banking that shows how it is used to manage the
customer life cycle more cost effectively.

The ERP applications helped to optimize and restructure their internal business support
system. SCM is a component of ERP you’ve built your customer information and
marketing data warehouse. CRM helps companies improve the profitability of their
interactions with customers, while at the same time; makes the interactions appear
friendlier through individualization. To succeed with, banking companies need to match
services and campaigns to prospects and customers - in other words, to intelligently
manage the customer life cycle.

Instead of looking at the internal processes the orientation come to look outside the
business and even more towards customers. Until recently, most CRM software focused
on simplifying the organization and management of customer information. Such
software, called operational CRM, focuses on creating a customer database that presents
a consistent picture of the customer’s relationship with the company and providing that
information in specific applications. These include sales force automation and customer
service applications, in which the company “touches” the customer. However, the sheer
volume of customer information and increasingly complex interactions with customers
has propelled data mining to the forefront of making customer relationships profitable.
“Data mining is a process that uses a variety of data analysis and modeling techniques to
discover patterns and relationships in data that are used to understand what your
customers want and predict what they will do.”

As a common trend customers used to call a clerk as a ‘Sir’ requesting for prompt service
but now he calls us as a ‘Sir’ by the bankers considered really as ‘Customer is a king’.
Earlier a customer who is the guest of the bank had to stand in front of the clerk for his
account operations but now the trend had changed the host and the guest are sitting
opposite to the table and the guest is welcomed by a pleasing smile.
COMPONENTS OF CRM

It is a bundle of sales, Marketing and Customer support applications. Integration of the

applications through the web makes the CRM applications really attractive. Transactions
are tracked through CRM and integrated with ERP and Data mining is used for the
analysis of data.

THE OLD CONCEPT

THE BACK OFFICE (General Manager, Manager Finance, HR,)

THE FRONT OFFICE (Cashier, Clerk)

THE CUSTOMER

THE NEW CONCEPT

THE BACK OFFICE

THE FRONT OFFICE THE CUSTOMER THE FRONT OFFFICE

THE BACK OFFICE

THE INTEGRATION OF CRE & ERP

CHANNELS OF COMMUNICATION APPLICATOINS

THE BACK OFFICE CUSTOMER EDP MANAGER

MANAGER

TELECOM MANAGER

THE FRONT OFFICE

THE FRONT OFFICE

The Channels of communication indicates the various possibilities of the customers

contracting an organization for information and help vide through telecom, Internet or
meeting through a person. The sales applications may typically contain functionally
relating to sales force management, scheduling, account management, reporting. It the
facilities are web enabled, facilities customers to log and access the site directly and
gather information browsing through the information provided in the web as in private
sector banks like ICICI Bank Ltd. UTI Bank Ltd. HDFC Bank Ltd.

The marketing applications may contain information related to its activities of the
organization like service details, pricing, distribution management etc. It should be
closely related to sales applications and managed by sales force. The support applications
contain information about service contracts, after sales services. This activity is to be
considered more crucial as the success of the organization largely depend upon managing
customer dissatisfaction. It is said a satisfied customer brings 5 more, but a dissatisfied
customer takes away 10 potential customers. The ERP system plays the role of
fulfillment of the orders, which flow from CRM applications to them. The circuit is
completed thus providing effective solution for addressing business issues comprehensive
way.

SOFTWARE SOLUTIONS FOR CRM

Siebel systems had developed software for addressing CRM, Oracle®, the world’s
second largest software company, had developed a CRM solution using Internet
technologies and only provider of ERP solutions to integrate them.

INTERNET BANKING:

Internet banking is a cost-effective delivery channel for financial institutions. Consumers

are embracing the many benefits of Internet banking. Access to one's accounts at anytime
and from any location via the World Wide Web is a most convenience effort.

INTERNET BANKING OFFERS SUCCESSFUL SOLUTION

 24 hours Account access.
 Exceptional rates on Savings, CDs, and IRAs
 Checking with no monthly fee, free bill payment and rebates on Automated Teller
 Machine (ATM) surcharges
 Credit cards with low rates
 Dealing with Bills & discounting.
 Easy online applications for all accounts, including personal loans and mortgages
 Quality customer service with personal attention
 Now balance enquiry is also available on Mobile Phone by SMS.
The benefits of Internet banking can be dealt as:
 Improves customer access.
 Facilitate the offering of more services.
 Increase customer loyalty towards the bank.
 Attract new customers
 Provide services offered by competitors
 Reduce customer attrition
 M-banking eliminates visits at ATM’s except for withdrawal and deposits.
 SMS is the best option can wake anywhere in the world.
 Cost of transactions reduces drastically leads to the better profitability.
 Can promote saving habits even among in children’s.

NEED FOR THE ANALYSIS

The important factors that establish the need for CRM in the Banking Industry are
detailed below:-
 Intense Competition
There is intense competition among the Private Sector Banks, Public Sector Banks and
Foreign Banks and they are all taking steps to attract and retain the customers.
New technologies, research facilities, globalization of services, the flood of new products
and the concept of all the facilities under one roof to provide better customer service
leading to customer delight.
 Well Informed Customers
The Customers in Banking Industry today are well informed. With the introduction of
new technology, the world has become like a small village. Thus, if a Bank wants to have
more customers, it should develop a good relationship with its present customers and try
to maintain the same in the future also.
 Decline in Brand Loyalty
In the present scenario, brand loyalty is on decline. The customers are switching over
frequently to avail the better facilities from other banks. Newer and superior products and
services are being introduced continuously in the market. Thus, the banks have to
upgrade their products, improve customer service and create bonds of trusts through
proper care of customer needs and regular communications. With the help of CRM,
strong customer loyalty and a good image for the organisation can be developed.
 Improved Customer Retention
In the intensely competitive banking industry, retention of existing customers is vital,
which can be achieved through the process of CRM.
REQUIREMENTS OF AN EFFECTIVE CRM STRUCTURE

An effective CRM system consists of the following:

(i) Personal Customer Needs
• Personal contact
• A knowledgeable and reliable banker.
• Relevant Information.
• Customized and timely solutions
• Value for money.
(ii) Business Customer Needs
• A professional partnership approach.
• High levels of information.
• Customized and highly responsive service.
• Quality Customer Information.

BENEFITS OF CRM

Benefits of CRM can be categorized into three groups namely: Benefits for customers,
benefits for employees and benefits for banks.

(i) Benefits for Customers

• There is a more coordinated and professional approach to customer contact.
• With up-to-date customer information, Banks can offer more personalized
services.
• Customers feel empowered if they have greater access to products and services.
example 24 Hours banking.
• Targeted product and service offerings can be timed to coincide with customer
events and requirements e.g., Education Loans and Tourism Loans.

(ii) Benefits for Employees

• Employees are empowered with the information to deliver high quality service
and meet customer expectations.
• Employees have more time to serve customers.
• Employees have higher satisfaction ratings.

(iii) Benefits for Banks

• Managers are empowered with information that can help them manage customer
relationships and make better decisions.
• Optimum use of resources.
• Customer satisfaction and increased loyalty.
• Improved customer acquisition and cross-selling.
• It helps in capitalizing on short windows of opportunities in the market.
INTRODUCTION OF INNOVATIVE SERVICES THROUGH CRM

Banks have made several innovations for sustenance by using the CRM System such as:
• The introduction of ATMs.
• Biometric ATMs.
• Single Window Service.
• Teller System.
• Internet Banking
• Introduction of Plastic Money: Credit Card, Debit Card, Smart Card.
• Mobile and E-Mail Alerts
• Electronic Cash
• Introduction of two in one Accounts.
• Introduction of new loan schemes as per the customer’s needs viz. Education
Loans,
• Marriage Loans, Housing Loans, Personal Loans, Vehicle Loans, Furniture
Loans, Renovation Loans and Tourism Loans.

IMPORTANT FINDINGS

• There are about two million registries Internet bank users in India.
• A1 class residents in Metro at least once in a week and 40% of all find it most convents
to bank online traffic.
• Among all have access to banks with satisfaction ratio of 98% including Public sector,
Private sector & Co-operative banks. Data source for cooperative banks was very limited
hence it was excluded.
• 56% have accounts with public sector banks, 22% in Private sector banks where as 22%
operates in both sector banks
• Overall Customer Satisfaction was analyzed on the basis of account operating by them
there was huge difference between public and private sector banks 66% respondents were
satisfied and 34% were dissatisfied with public sector banks, where as 95% were strongly
satisfied with the services of Private sector banks.
• Time required to withdrawn from banks: 44% agreed with less than 15minutes, 50 %
lies between 16-30 minutes, 4% required 30-60 minutes and even 2% required more than
1 hour.
• In case of large deposit 72% shown their loyalty towards public sector banks where as
28% towards private sector.
• 76% were having knowledge about e-banking services, but 34% were satisfied with e-
security, 14% refused and 52% were unable to cast their view.
• On the question about the maximum satisfaction from the services provided by the
banks out of it overall 62% are satisfied with private banks then 22% with public, 12% by
both and 4% couldn’t comment about it.
• 92% strongly agreed about immense need of CRM in public sector banks where as 2%
refused & 6% were unable to talk about.
• In question about unemployment created due to computerization 54%agreed, 28%
refused & 18% were unable to give answer.
• M- banking quickly checks balance, get transmission list, stop cheque or even pay the
bills on the standing instructions. Number of visits can be reduced only up to deposit and
withdrawal of the funds.
• SMS (short message service) is nowadays better solution in comparison to M-banking
and can work anywhere in the world. Its services can also be used for stop payment,
transfers, balance enquiry, debt clearance (installment payment etc.)
• Popularity of e-banking is merely 1% in India, comprises to 10% in Korea, but city
Bangalore literacy was around 60% of the respondent, but among illiterates e-governance
was limited.

SOME HARD FACTS ABOUT INDIAN BANKS

 Throughout the country, the Internet Banking is still in the development phase.
 In general, these Internet sites offer only the most basic services. 55% are so
called 'entry level' sites, offering little more than company information and basic
marketing materials. Only 8% offer 'advanced transactions' such as online funds
transfer, transactions & cash management services.
 Foreign & Private banks are much advanced in terms of the number of sites &
their level of development.
 Account security is still the key issue with the increase in hacking.
 Increase in service time even when the system is running.
 Absolute chaos when the system is down temporarily when no service is offered
even if the system is not needed to dispense the customer (mere acceptance of a
cheque is also refused even when the entry is possible to be done later)
 Delay in receiving periodic statements.
 No answer for wrong balance being carried forward either at year-end or at the
time of switchover to computers until expensive hue embarked upon.
 Mismatch of exceptional transactions between the manual books and the
computer generated report.

The applications of CRM and E-Banking facilities are creating fast presence in the
private sector banks, where as customers demand for better services from banks
especially in Public sector.
CONCLUSION

a) Origin of the Problem:

With high rate of change of technology, existing management practices and policies,
marketing strategies need to be changed. Existing businesses have to be prepared for
future shock. Awareness of the cutting edge of knowledge in each field is of supreme
importance. Keeping this challenge in mind it was an attempt to rediscover the power of
upcoming technologies of digital revolution in the field of banking sector – the
challenges and their impact on future economy.

b) Major results:
i) There is an immense need of adequate training and motivation to the bankers to create
fruitful and everlasting relations with their valuable customers. They should also come
out with more efforts to make their customer literate in order to incorporate the best
potential available in IT sector.
ii) No doubt CRM is here to take on the business world and essential to compete
effectively in today’s market place. The more effectively you can use information about
your customers to meet their needs, higher the satisfaction the more profitable we will be.
Operational CRM needs analytical CRM with predictive data mining models at its core.
The route to a successful business requires that you understand your customers and their
requirements, and data mining is the essential guide. Extensive usage of Internet is going
to be de facto standard and it’s the challenge for the corporate world to fulfill desire of
the customers. It can now be followed as written in the shops ‘Grahakha Param Devah’
that means Customer is God for us. Move fast or be beaten by the competition that might
convince the customers that they are better than you as proved by the private sector
banks.

c) Outcome
E-banking is not having top priority in India Public Sector Banks but then also it is
emerging scenario in near future. There is need of CRM to be use more effectively in
order to maintain profitable relationship with their customers.