Customer relationship management is penetrating all walks of financial services, but it seems banks are ahead of the game in fully integrating the concept into their business strategy, according to a recent teleforum conducted by TowerGroups Kathleen Khirallah, senior analyst in the Retail Banking Group. While retail banks have historically led the way in CRM adoption, the remaining sectorswhich include mutual funds, discount brokers, full service brokers and property and casualty insurersare expected to gain ground in the coming years.
We think of CRM as being a business strategy, not just as a technology, says Khirallah. Theres a whole range of technologies that need to be brought together in order to execute a CRM business strategy and theres an understanding that its really both the back and front office and they need to work together.
Khirallah estimates that retail banks will be the first to reach the final phase of CRM deployment across multiple channels between 2001 and 2004 while discount brokers and mutual fund companies should get there sometime after 2004 and full service brokers expected to complete the process post 2005.