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Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
Essentials of crm for commercial banking
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Essentials of crm for commercial banking

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Client relationship management (CRM) strategies and technology are used to maximize client value, become trusted advisors, and streamline operations, contributing to top-line and bottom-line revenues …

Client relationship management (CRM) strategies and technology are used to maximize client value, become trusted advisors, and streamline operations, contributing to top-line and bottom-line revenues and gaining insight they can “take to the bank.”

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  • 1. W H I T E P A P E REssentials of CRM for Commercial BankingBuild Relationships You Can Bank On Executive Summary Today, leading commercial banks are looking beyond the transaction to the full opportunity presented by their commercial clients. Accordingly, they’re moving beyond managing clients as simple contacts to a whole new level of client relationship management, crafting a superior commercial client experience that gives the bank a competitive advantage—and a more loyal, profitable client. In this white paper, learn how commercial banks can use client relationship management (CRM) strategies and technology to maximize client value, become trusted advisors, and streamline operations, contributing to top-line and bottom-line revenues and gaining insight they can “take to the bank.”
  • 2. Introduction: Do Commercial So what about commercial banking? Commercial banks face many of the same challenges as other Banks Really Need CRM? financial services firms. Differentiation in a context of commoditization is a continual challenge: how can Before looking at how commercial banks can use client commercial banks move clients beyond just rate- relationship management (CRM) software, it’s worth shopping, or create preference when rate differences are considering whether, or at least why, they need it in negligible? Client loyalty is another challenge: how can the first place. CRM, as we will explore, constitutes a bank retain its clients when other lenders are looking much more than just a software purchase—it is a to lure them away? Many commercial banks also operate business strategy, and one that demands executive-level different units serving small businesses, the mid-market, commitment, reexamination of processes, and often equipment finance, and commercial real estate, and a significant cultural shift. It’s therefore important to the commercial banking operations may exist as part understand whether CRM is something appropriate and of larger regional, national, or global financial services worthwhile for commercial banks to pursue. organizations. Regardless of size, such firms often face the same challenges leveraging customers and At this stage, CRM is no opportunities across units and business lines due to aTo achieve organic growth, longer a new concept, having lack of unified information or collaboration around clients. been around for more thanyou need to become more a decade. It has moved past In addition, commercial banks face a few challenges allthan just a bank to your its early growing pains and their own. With interest rates low and competition fromcommercial clients: you matured into what many alternative sources of funding, commercial banks areneed to be their trusted firms consider a necessity, grappling with compressed margins and reduced clientbusiness advisor. perhaps even a “given.” But loyalty. They also face pressure to better manage risk companies that see CRM in their lending practices, which requires strong client as just a standard part of knowledge and the ability to proactively monitor changes the IT infrastructure or cost of doing business may fail and trends. Furthermore, commercial banks are returning to understand its full strategic value and potential. CRM to more conservative lending principles, looking not so should not be an appliance—it should be a vital part of much to attract the highest number of clients at any cost a firm’s overall business strategy. as to attract and retain the right ones while minimizing credit losses. Organic growth, under these circumstances, CRM is part of a major shift in the business world away is all about deepening and expanding client relationships from product-centric thinking toward customer-centric and improving their profitability. To do this, you need to thinking. Simply put, it’s a transition away from focusing become more than just a bank to your commercial clients: on how to make people want what you offer toward you need to be their trusted business advisor. making sure you offer what they want. More than that, it’s about understanding who your customers are and what To take their client relationships to the next level, they need, not only so that you can satisfy their needs commercial banks need more than just the will: they better, but also so that you can improve their profitability need a sound customer-centric strategy and the tools to for your firm. By growing your value to them, you grow implement it. In short, they need CRM. their value to you. This “customer-centric” concept has found particular Do You Already Have What You Need? resonance in the financial services industry, where The preceding introduction may have left some firms have struggled with competitive differentiation as commercial banks with a disquieting feeling: “I thought their products and services have become increasingly we already had CRM, but it doesn’t do that.” This is not commoditized. The ability to understand clients more uncommon, and it is usually for one of two reasons: deeply and meet their needs better than competitors has 1) you don’t actually have a CRM system, or 2) you have presented a true opportunity to create differentiation and a CRM system, but not the right one for your firm. client loyalty. Furthermore, as many financial services firms have diversified and grown through mergers and The first issue arises due to a common misconception acquisitions, they have become more fragmented, failing that “contact management solutions” are tantamount to to fully achieve the economies of scale and synergies they CRM, which is not the case. had hoped for because they have been unable to truly pool their intelligence and act collaboratively to leverage Contact management software was rapidly embraced opportunities across business lines. Forward-thinking by the banking industry when it first came on the scene, financial services firms have seen how unifying and aligning because it filled an urgent need for more consistent, around the customer using CRM is a strategy that can be centralized contact tracking. It quickly replaced the effective in breaking down these barriers and finding new isolated personal Rolodex and made it easier and synergies and opportunities for organic growth. more efficient for companies to keep track of their Pivotal CRM | White Paper 1
  • 3. many professional contacts. But as major e-mail Whether your firm has never implemented a true CRMapplications such as Microsoft Outlook became more system or you simply feel that your firm is not achievingsophisticated, they gained many embedded contact its full potential with its current CRM solution, this whitemanagement system features, including useful add-ons paper will help you understand what commercial bankssuch as calendaring and task-list management. Given the can achieve today using the right CRM system to supportgrowing importance of e-mail to professionals’ business a customer-centric strategy.lives, this convenient integrated alternative quicklysupplanted contact management systems, which werepushed toward obsolescence. True Relationship Management Relationship management is not simply “customerThe decline of contact management systems was service.” True relationship management seeks to initiate,concurrent with the rise of a whole different class of cultivate, and sustain a two-way exchange of valuesoftware: client (or "customer") relationship management. between a business and its clients. For commercialCRM systems sought not just to compile and coordinate banks, this means thinking strategically about every stepcontacts and tasks, but to create full databases of deep of the client lifecycle, from first contact through the lendingclient intelligence, complete with tools that would help and payment process and provision of other productsusers gather, access, and apply this information more and services to ongoing retention of their business. Iteasily and meaningfully. CRM systems also encompassed means considering how the bank can add value to andmarketing, sales, and service automation features that derive value from each stage. It means thinking not juststreamlined related processes, integrating not just data, about individual transactions but about the totality ofbut workflows and activities. While contact management the customer experience—its coherence, consistency,systems had tried to turbo-charge the Rolodex, CRM continuity, and competitive differentiation, as well as itssought to enrich and unify all elements of the front office ability to build and deepen the customer’s relationshipby facilitating customer-centric strategies—a far more with the bank with every interaction.ambitious undertaking.Two forces combined to discourage commercial banks Win the Businessfrom moving beyond contact management to CRM:first, struggling contact management system vendors True relationship management doesn’t begin when aattempted to reinvent themselves as CRM, convincing client selects your firm for commercial banking services,commercial banks they already had what they needed but long before—from the moment they are identified asin their contact management systems, and second, a a potential client. A good CRM strategy will recognize thisfew highly publicized CRM failures by early adopters and mandate the selection of a CRM system that can helpmade some banks wary of joining the trend too soon. you not only service and retain existing clients, but attractUnfortunately, even as those few misguided early CRM them and win their business in the first place.projects were superseded by a panoply of successes, A commercial bank’s in-depth CRM-system profile ofmany commercial banks remained complacent and failed a client organization should begin before they becometo ever graduate to real CRM—or didn’t realize the vast a client, with a prospect record. While at first only limiteddifference between what they already had in place and details about a contact or company may be available,true CRM. recording them within the system enables the firm to takeOf the commercial banks that did implement CRM action on building out the profile, researching prospectssystems early on, some still failed to understand the and aggregating information about them to create astrategic underpinnings and cultural shifts required more useful picture—one that will help win their business.to make CRM software truly successful, installing the Further research on specific prospects can even besystems but failing to really implement them to their assigned as a task within some CRM systems. Marketing-advantage. Others selected a system that didn’t really list contacts can also be entered into the system to createmesh with the commercial banking industry and its a single, integrated database of targets and prospects.processes and therefore failed to gain sufficient adoption Advanced CRM querying tools can then be used by thewithin the company to be of real value. marketing or business development team to segment the database into meaningful groups, allowing highlyFortunately, today the CRM landscape has changed personalized and relevant messaging to be delivered tosignificantly. There are now CRM systems designed them. For example, the commercial bank might segmentspecifically for financial services—even expressly for its prospect database by company size, industry, lendingcommercial banking—offering a better fit for the industry needs, or maturity level and send specific campaigns andwithout complex and costly customization. There are also messages based on this information. Many CRM systemsCRM options on the market that are more flexible and include marketing automation components that allow suchadaptable than ever before, allowing firms to model their campaigns to be created or sent directly within the CRMunique processes rather than try to fit a pre-programmed system, personalizing content such as name and addressmold that may not work for their company or personnel. using the CRM profile. More advanced systems will allow Pivotal CRM | White Paper 2
  • 4. for sophisticated conditional content, replacing entire As the lending cycle progresses, commercial banks graphics or paragraphs of text, for example, based on should be able to capture increasing detail about the the recipient profile. prospect and the opportunity, recording and storing all information and communications in the CRM system, As each interaction with a prospect occurs—whether it’s such as RFPs, business plans and goals, organization a phone call, e-mail, marketing campaign, or in-person structure, risk profile, and contacts tied to the opportunity. interaction, and whether initiated by the prospect or the Having this information centrally stored within the commercial bank—it can CRM system enables a team-based approach, with all be documented within the participants and managers continually kept apprised ofA good CRM system CRM system, creating a each new development as the opportunity progresses.used effectively will help comprehensive record of the New tasks can be assigned to team members through thecommercial banks target and prospect’s history with the system as required: every member of the team is kept onattract the right business, firm and response to various the same page and understands their role and the deal’s approaches. In addition to status, accelerating the lending cycle and eliminatingpursue deals more capably tracking the effectiveness of information-hunting and duplication of effort. Furthermore,and strategically, close different marketing and sales storing opportunity information and contacts centrallydeals more swiftly, and bring techniques, this allows the within the CRM system allows commercial banks to easilynew clients on board more commercial bank to build out find connections and pre-existing relationships that mightseamlessly. the prospect profile further with facilitate winning the business or obtaining insight into each interaction and gradually the client or opportunity—for example, a consultant tied develop more advanced to one opportunity might also have been involved in an segmentation and behavioral existing client account. Leveraging this kind of insight targeting, as well as a more complete risk profile. When can help commercial banks work more strategically and a new or existing prospect becomes a lead through a efficiently, taking advantage of all available resources marketing-campaign response or other expression of and relationships to increase win rates while shortening interest, many CRM systems allow commercial banks the lending cycle. As business moves toward closing, to pre-qualify the lead according to custom criteria and the ability to assign tasks around quotes, contacts, automatically route qualified leads to the appropriate signatures, and approvals helps drive the deal to closure employee for follow-up according to territory, product, as rapidly as possible. specialization, or an advanced combination of factors. For example, an equipment finance unit might wish to Once new business is won, some of the most labor- direct leads based on ticket size as well as region. This intensive processes must take place, such as account ensures that skilled business bankers’ time is not wasted origination and documentation. Yet this is also precisely on unqualified prospects and that hot leads don’t go the time when a customer relationship is newest and most cold while waiting to be sent to the right person, helping delicate: professionalism and efficiency are paramount. ensure the bank doesn’t lose business to faster-acting Many CRM systems include workflow tools that enable competitors. Furthermore, it ensures business bankers each element of multi-step processes such as account are kept focused on the accounts with the most revenue origination to be automated, electronically assigned, and potential, rather than chasing weak or high-risk leads. This streamlined, ensuring more rapid completion and higher increases overall productivity and reduces the cost of the team productivity. lending cycle. In essence, a good CRM system used effectively will When a prospect moves from being a lead to a defined help commercial banks target and attract the right business opportunity, CRM systems should enable business, pursue deals more capably and strategically commercial banks to apply a strategic plan to engage while economizing resources, close deals more swiftly to the account and pursue the opportunity step by step reduce the risk of losing them to competitors, and bring according to the bank’s lending process. One of the new clients on board more seamlessly. A CRM system greatest advantages of having a CRM system is the ability can be the difference between haphazard, uncoordinated to implement a formalized methodology that ensures client acquisition supported by manual, individual efforts consistent, deliberate steps to win business, such that and methodical, efficient business generation supported every account receives the same professional, attentive, by a team-based approach. Best of all, in the process of and effective customer-management approach. A good pursuing prospects and opportunities, the firm builds up CRM system will not impose a methodology on the a rich, detailed profile and history that lays the foundation commercial bank or restrict its options, but enable it to for a more meaningful business relationship. embed the process of its choice in the system, be it a proven third-party methodology or the banks own unique proprietary methods. Pivotal CRM | White Paper 3
  • 5. Know Your Customer Even if this is all information that exists in your firm today, it is worth considering where it resides and how easy itWinning the business is just the first step. Once a firm is to access and use. If client data is dispersed acrossbecomes a client, the real relationship management multiple files and systems, it can be virtually impossiblebegins, and as with any relationship, getting to know each for an employee to get a comprehensive picture withoutother is an essential building block for trust. hours of research and reporting—let alone to use it in responding to a client or management inquiry on the spot.To get the most out of CRM, a commercial bank must Without a 360-degree client view, risk and opportunity maybuild into its processes, culture, and use of the system be equally difficult to identify. Furthermore, a staggeringthe recognition that knowledge is power. Just as every amount of this information may reside with individualclient interaction should be documented in the system, employees—whether in their printed or electronic files,so should every new piece of information, whether it’s written notes, or heads. This generates a massive amountsomething as simple as a contact’s birthday or spouse’s of risk for a commercial bank: should the files be lost orname or as fundamental as a major management change the employee leave the firm, the client knowledge—inor financial result. Both kinds of information can be fact, the entire relationship—can be jeopardized. Storingequally valuable to the commercial bank in cultivating all client data centrally not only creates this form ofthe client relationship. “corporate memory” that persists over time; it also helpsSince relationship management is at heart about value the client relationship transcend individuals and accrueexchange, it is of utmost importance that a CRM system to the firm more broadly, as any employee in any locationhelp a commercial bank understand where that client can give the client equally informed and consistent service.value lies. This demands a 360-degree client picture. As with any relationship, it is important to recognize thatThe CRM system should enable the commercial bank to client relationships aren’t static. Client profiles shouldbuild out a full, meaningful client record, integrating data never be viewed as “completed,” because there isfrom other systems to make the CRM system a one-stop always more to learn and it is always evolving: client-firmshop for client information. This holistic record should employees leave or change roles, reporting structuresinclude not just details of loans or other products and change, areas of business focus are shifted, marketsservices that have been sold to the client, but broader fluctuate, and risk dynamics change. CRM must beinformation that helps the commercial bank understand integrated into the company culture and interactions to thethe full potential of the client, as well as pinpoint areas extent that each interaction is seen as a new opportunityof risk. For example, the record should allow the firm to to learn more about the client or to validate and updateview the complete net worth and asset distribution profile the information already in the system. A vast database ofof the client to reveal share of wallet and opportunities stale information can be as injurious to the relationshipfor growth. If at the underwriting stage, for example, a as too little information, so efforts must be continuallybank learns that a commercial client qualifies for a larger made to keep this valuable data fresh and accurate.loan than requested, they can seize the opportunity to With a good CRM system, prompts and reminders toinvestigate the company’s equipment leasing plans and obtain or update various pieces of data can be wovenfuture growth plans, working with the client to determine into the automated workflows and interactions, makingwhether additional financing is appropriate at this stage. data collection and hygiene—as well as proactive riskThe CRM system should also allow the bank to track the monitoring—an integrated part of your CRM processes.many complex relationships and associations betweencontacts within and outside the client firm. For example, Become a Trusted Business Advisora client business may have multiple divisions, affiliatedcompanies, and partners that may present opportunities While the ever-expanding database of client informationfor the commercial bank. The commercial bank may even in your CRM system is valuable, the real value emergesshare clients with its clients. The CRM system should from applying this information. Rather than leaving thisfurthermore enable the bank to track the source of its to chance, smart commercial banks will use CRM to gonew business leads—it could turn out that a lower-tier from reactive to proactive, ensuring that client informationclient is in fact referring other businesses to the bank is leveraged to the firm’s advantage at every turn and thatand thus bringing additional value. Understanding these the client relationship continues to evolve and deepenintricacies can help the bank keep track of areas of over time.influence and value that might otherwise remain hidden, The right CRM system will enable commercial banks toas well as maximize business-referral opportunities. This implement a solid relationship plan composed of frequentgives a truer picture of client value and potential and goal-based touch-points throughout the year. This canavoids embarrassing underestimations of a client’s be as simple as an informal check-in call or as complexunderlying importance. as a multi-stakeholder on-site strategy meeting. The CRM system should enable the firm to store information Pivotal CRM | White Paper 4
  • 6. about the client’s business plan, stage, and milestones. bank’s offering with competitive offerings the client might The overarching goal is to ensure the commercial bank be considering or overcome any objections, highlighting understands the client’s business and evolving priorities their product’s differentiators and comparative advantages and is in the right place at the right time to position its or developing rapid counter-offers. In some cases this financial expertise, products, and services. Not only could rule out the competition right from the outset, will this enable the commercial bank to effectively and dramatically shortening sales or lending cycles and seamlessly up-sell and cross-sell the non-interest fee- preventing rate-shoppers from going elsewhere. based offerings that are of increasing importance in the context of low interest rates and compressed margins, Various kinds of information are best provided by the but it will continue to deepen the relationship cumulatively specialists, but this should not prevent it from being over time and enhance the perception of the bank as not accessible within the CRM system. Some CRM systems just a one-time lender, but a trusted business advisor. allow third-party data to be integrated right within the CRM interface, allowing commercial bank employees to keep After each call or meeting, the track of useful information such as news headlines, tickerCRM systems aren’t just data system should make it easy information, and research without leaving the system.sources; they’re collaboration to enter notes that clearly Similarly, some CRM systems will allow users to access flag all products and services resources such as map programs and client websitesplatforms. discussed and the client’s within the CRM interface. Integration with specialized reaction, preventing the client systems for credit lifecycle management, loan origination, from being offered the same items multiple times from loan servicing, and risk monitoring also helps multiple sources. Any follow-up tasks, whether for the create a more complete and current view of client status primary relationship officer or other colleagues, should within a single system. This saves time spent switching be easy to assign within the system for guaranteed between programs and brings the information direct to follow-though, even if they are for six months or two years the employee when and where they need it most. down the road. Any new referrals generated through the interaction should be easy to enter as leads and should Managing research can also be a chore for commercial clearly note the source. banks, but with the right CRM system, they can easily query the client database to find clients who may be Relationship plans embedded in the CRM system ensure interested in receiving new research on specific topics that as with the initial lending process, the steps to build and send the research directly from the system to and maintain the client relationship and derive value from individuals or large lists of clients on a scheduled or it through ongoing revenue-generation are consistent, ad-hoc basis. methodical, and strategic. Up-selling and cross-selling to existing clients can then be pursued with the same In addition to helping employees be more productive and discipline as new clients. What differentiates this kind efficient and making their jobs easier, fast, direct access of sale, however, is that it is enriched by the deep to the information that is of most value to the client helps knowledge of the client business that has been built up commercial bank personnel position themselves as more over time, allowing the bank to time and match pitches to informed, helpful, and advisory. client needs, increasing receptivity and conversion rates by being more customer-centric. Collaborate for Success CRM systems aren’t just data sources; they’re Manage Research and Products collaboration platforms. Today’s clients want immediate To create a true “one-stop shop” for working with clients, service and faster results—having a single person the best CRM systems bring together as much of the servicing an account can create a bottleneck and slow information commercial banking staff need as possible down response. Similarly, within the average commercial under one system. This includes not only the rich client bank, there are many different skill-sets and areas of information described above, but product information, specialization, and often discrete units for SBL, CRE, and competitive intelligence, research, and third-party so forth. It is seldom most efficient or in the best interests data sources. of the client to have a single staff member attempt to meet all of a client’s needs, and it can ultimately limit the By storing product and service information within the CRM products and services offered to a client. system, commercial banks can instantly call up the facts and features they need to position the offerings to clients As previously mentioned, CRM systems should allow for and prospects. Some of the more advanced systems will a team-based selling approach. This persists after client allow flexible components and features to be dynamically on-boarding with collaborative account servicing and combined to fit client needs. Some CRM solutions also relationship management. The goal is to allow efficient allow competitive intelligence to be stored within the behind-the-scenes collaboration between different area system so that it is easily accessible at the point of sale. specialists to help move intricate processes forward This enables the loan officer to proactively compare the faster, while also providing the pooled intelligence to Pivotal CRM | White Paper 5
  • 7. allow every team member to benefit from the information and implementations while opening up a whole realmgathered by the others. This empowers all team members of possibility for collaboration across geographies andto serve clients in an equally informed and professional business lines—for example, a commercial bank maymanner, helping build the relationship while also allowing have a client company that is seeking a multi-million-dollarseamless continuity of service in the event of employee line of credit with a view to making acquisitions and couldillness, vacation, or departure. This also assists in refer the company to their investment banking arm as aelevating the client relationship to the company level, not lead. Such collaboration serves to deepen the client’sjust the individual employee. relationship with the firm and the commercial bank’s advisory value to the client.Collaboration is facilitated by CRM workflows andaction plans that allow complex processes to be brokendown into defined tasks that can be assigned through Provide Management Insightthe system to the appropriate individual and performed With all marketing, lending, and service activityeither sequentially or concurrently, as appropriate. being tracked and managed within the CRM system,This streamlines activities and drives them forward commercial banking executives have the perfectfaster, ultimately increasing overall productivity and management platform. At any time, they can see in thelowering overhead. CRM system exactly what stage a given opportunity is at, without having to hunt down employees for statusAnother dimension of collaboration that is often updates. This allows them to precisely calculate the salesunderdeveloped in commercial banks is interdepartmental pipeline for revenue forecasting. They can also see whichcooperation, or collaboration between the commercial clients are happy, which ones have issues, and whichbanking unit and other lines of business within a broader ones are growing or shrinking in profitability.financial services firm. CRM systems should make iteasy for leads that come in to one area of the firm to A good CRM system allows executives to performbe assigned to another area of the firm, such as from more proactive sales management. They can identifycommercial lending to leasing or commercial real estate, which employees are responsible for bringing in thefor follow-up or pursuit—without the risk of having the most revenues and which are possibly in need of morecustomer fall through the cracks or be treated like a training or support. They can see which deals or clientsstranger by another unit. This highlights the value of are at risk or pose risk and take action to ameliorate thehaving a shared CRM system across different areas of the situation before it is too late. They can also see whichfirm. The idea of a global, cross-business CRM system clients are most profitable or present the greatest growthis unappealing to some commercial banks because they opportunities and focus on developing executive-levelrecognize that there are significant differences in the kinds relationships with them.of data and processes used in different geographies andbusiness lines within financial services. However, solutions CRM systems can present an invaluable source ofare now available through flexible systems that allow decision support. With good reporting features, a CRMuniquely tailored CRM systems—complete with their own system should allow an executive to report on almost anyworkflows, data views, and processes—to coexist on a facet of sales performance, client-base composition, andunified platform. This kind of system can accommodate return on investment. Executives can use CRM data toprocess differences among discrete commercial banking perform win/loss analysis to see which deals are beingunits such as small business lending and equipment won and what the common attributes are, using this tofinance, but also among completely different lines of refine the bank’s processes and segmentation as wellbusiness, such as investment banking and mutual fund as to spot new opportunities and trends. They can alsowholesaling. Such systems allow commercial banks and use CRM data to realign teams and territories to play onother financial units to maintain their unique processes Keeping Pace with Change: The Need for Flexibility As we all know, the only constant is change. With market-structure shifts, regulatory changes, competitive pressures, and other forces continuously reshaping the commercial banking landscape, you can count on the fact that your firm will need to adapt in order to deal with the plethora of changes in your business environment. To continue to be effective high performers in today’s business climate, organizations have to be agile and adaptive. Supporting your business processes with technology can make your company faster and more productive today—but you must also ensure it won’t hinder you when you need to respond rapidly to tomorrow’s changes in the market and regulatory environment. Whatever CRM system you choose, you should ensure it is capable not only of molding to the way you currently do business, but also of adapting to change—quickly and cost-effectively. No matter how robust or powerful your CRM system, it is useless if it will tie you to outdated processes and impede your business agility. Be sure to select a flexible, easily customizable CRM system that can keep pace with your business in a dynamic business environment. Pivotal CRM | White Paper 6
  • 8. individual strengths and to allocate budgets and other doing business anywhere from on-site at their place ofresources. business to the coffee shop on the corner. Commercial banking professionals can no longer afford to be chainedA good CRM system gives managers and executives the to their desks, especially as their competitors go mobile.opportunity to closely monitor what is going on withinthe firm without overloading employees with requests for Mobile and wireless capabilities are thus importantupdates and reports. It also provides a valuable record of CRM-system considerations for commercial banks.employee actions and client communications that helps Employees need to be able to access and contribute toavoid reliance on subjective reports and interpretations, CRM data from laptops and handheld devices, anytime,providing more concrete evidence of employee interaction anywhere—whether they are referring to loan detailswith clients and prospects. before an on-site meeting or entering call reports while on a plane. Luckily, many CRM systems offer mobile and wireless features that allow users to access or addComply with Client CRM data from the device of their choice. With access toand Regulator Expectations a broadband Internet connection sometimes uncertain,Regulatory compliance is an ever-evolving challenge for another feature offered by some CRM systems that is ofall financial services businesses, and client expectations significant value to banking users is the ability to operatefor data security and privacy are continually mounting. with complete CRM functionality and data while in a fullyA CRM system can help commercial banks meet the disconnected mode, synchronizing with the main systemdemands of both regulators and clients by providing when reconnected—ensuring optimal productivity andsound security controls and thorough records. performance at all times, regardless of connectivity.A good CRM system will allow commercial banks tocontrol access to sensitive client data by restricting Conclusion:it on a “need-to-know” basis to those employees withappropriate authorization. This balances the desire The Client Experienceto share client information for better-informed service Opportunitywith the need to adequately protect client privacy.The commercial bank should be able to restrict access Do commercial banks really need CRM? It seems clearto sensitive information while still allowing access to that without it, few commercial banks are positioned toother information that helps employees help clients. live up to the demands of today’s clients.Some systems will also allow commercial banks As this paper demonstrates, with the right CRM system,to create personalized privacy statements for clients, commercial banks can create a more client-centrichelping reassure them that their privacy expectations infrastructure and corporate culture, enabling them toare being met. craft a more satisfying and differentiated client experienceWhile CRM systems are by no means all-encompassing that helps build loyalty and preference. At the same time,compliance solutions, they can still be of assistance they can help grow top-line and bottom-line revenueson a variety of levels. A good CRM system will allow by building greater efficiency, productivity, and valuecommercial banks to manage mandatory and optional into every stage of the client lifecycle and uncoveringdisclosures for client accounts. It will also provide a more opportunities to cross-sell and up-sell other financecomprehensive audit trail for all information entered, options as well as non-interest-based products andaccessed, and changed within the system. CRM records services to help counteract the effects of low interest ratescan also be very useful as documentation of client and compressed margins. Greater collaboration amonginteractions and communications. commercial banking units and other lines of business can increase corporate synergies and efficiencies whileSince new regulations are a continual concern, the generating more referrals and broadening relationshipsgreatest advantage a CRM system can provide to a with key clients. Furthermore, commercial banks cancommercial bank is the flexibility to adapt to change and use CRM to increase executive insight, inform decision-accommodate new processes and data collection needs making, and decrease risk, while also supporting moreeasily and cost-effectively. effective internal collaboration. It’s a win-win scenario for both clients and commercial banks.Mobile Access: Productivity Anytime, Client relationship management is still first and foremostAnywhere a strategy, with technology as its toolbox. But today, a commercial bank with a strong client-centric visionCommercial banking clients are increasingly mobile, and can use the right CRM system to devise a unique clientmore and more, they expect you to match their mobility, experience that maximizes value across the front office and confers a competitive edge. Pivotal CRM | White Paper 7
  • 9. Pivotal CRM for Commercial market lending, equipment finance, and commercial real estate lending, Pivotal CRM allows commercial bankingBanking units to function as a unified whole while still meeting their unique needs. Furthermore, Pivotal CRM for CommercialPivotal CRM for Commercial Banking is a complete, Banking is complemented by the full Pivotal CRM forend-to-end client relationship management suite that Financial Services suite, which also includes solutionsoffers exceptional functionality tailored to the needs for investment banking and institutional brokerage,of commercial banks. Pivotal CRM for Commercial private banking/wealth management, institutional assetBanking is designed to help commercial banks retain the management, and mutual fund wholesaling, allowingadvantages and insight of traditional relationship banking diversified firms to easily accommodate the uniquewhile capitalizing on the efficiencies of automation and processes and information needs of their different lines ofcentralized client information and opportunity management. business while maintaining a common platform.Pivotal CRM for Commercial Banking mirrors the Use Pivotal CRM for Commercial Banking for:business processes and data models commonly used • Complete CRM tailored to commercial bankingby commercial banks. Its flexible platform allows it to beseamlessly connected to the entire firm, including back- • Company and contact profilesoffice financial systems. With an industry-specific client • Relationship and influence trackingrelationship management system, commercial banks can • Activity management and planningaccelerate their return on their investment and lower their • Account alertstotal cost of ownership. • Productivity toolsUsing Pivotal CRM, commercial banks can fully integrate • Up-selling and cross-selling toolsmarketing, lending, and service functions for increased • Workflow managementefficiency and effectiveness, obtaining a complete viewof the client so users from all areas of the company • Power searchescan personalize their client interactions. Pivotal CRM • Lead managementsaves time and increases productivity by automating • Territory managementand facilitating workflows for important multi-stakeholder • Opportunity managementprocesses such as account origination and responding • Product and research managementto RFPs. It also provides visibility into complex networksof affiliation and influence, allowing commercial banks to • Service trackingmore successfully track referrals, measure full client value, • Privacy compliance and disclosuresand identify new opportunities. • Literature and materials fulfillmentPivotal CRM enables commercial banks to fully integrate • Administrative assistant portalsales, marketing, and service functions for increased With commercial banks around the world using Pivotalefficiency and effectiveness, providing a complete view CRM solutions, CDC Software has proven time and timeof the client so users from all areas of the company again its ability to meet the needs of the industry. Thecan personalize their client interactions. Pivotal CRM Pivotal CRM approach ensures a faster implementationsaves time and increases productivity by automating with a lower total cost of ownership by delivering financialand facilitating workflows for important multi-stakeholder services solutions on the scalable and flexible Microsoft®processes such as opening new accounts and platform, which supports easy customization, integration,responding to RFPs. It also provides visibility into complex and deployment. Commercial banks can rapidly andnetworks of affiliation and influence, allowing commercial cost-effectively adapt Pivotal CRM to meet changingbanks to more successfully track referrals, measure full compliance and operational demands and grow with theirclient value, and identify new opportunities. business—meeting their business needs today, tomorrow,With the ability to easily adapt the system for different and in the future. To learn more, please call us at 1-877-processes used across small business lending, mid- PIVOTAL or visit www.pivotal.com/financialservices.For more information or a complete list of our worldwide offices, please visit www.pivotal.com.Copyright © CDC Software 2010. All rights reserved.The CDC Software logo and Pivotal CRM logo are registered trademarks and/or trademarks of CDC Software.

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