Customer Relationship Management (CRM) came into the power when banking institutions were getting more and more competitive. The focus of CRM helped banks to understand the customer’s current needs, what they have done in the past, and what they plan to do in the future to meet their own goals (Xu, et al., 2002). Even though most of the banks in the developing countries such as: India have realized the importance of CRM and implemented its applications, but the initial investigations of the current research have shown that quite users say that CRM has damaged customer relationships. Therefore, this paper is based on highlighting the problems and challenges in the banking sector of India using CRM. Also some of the major problems in the banking sector of India are identified using the qualitative interviews from different bank employees and customers and their findings are presented in this paper. INTRODUCTION : Today, banking institutions face many challenges including global competition for deposits, loans, underwriting fees, increasing customer demands, shrinking profit margins and the need to keep up with the new technologies (SAP AG, 2002). According to Onut et al., (2006), banks and other service providers realize the importance of Customer Relationship Management (CRM) and its potential to help them acquiring new customers, retain existing ones, and maximize their lifetime value. Customer Relationship Management (CRM) came into the power when banking institutions were getting more and more competitive. The focus of CRM helped bankls to understand the customer’s current needs, what they have done in the customer’s current needs, what they have done in the past, and what they plan to do in the future to meet their own goals (Xu, et, al., 2002). According to Crosby (2002), the intelligent use of information about customer needs will create long-term two way relationship with the customers. This will bring many advantages to the banking sector since long term customers are less costly to serve and smooth running relationships are less resource demanding. In general, CRM for any organization consists of two tasks i.e. customer acquisition and increased sales to existing customers. It is often justified by the phrase, “ Make the right offer at the right time to the right customer”. In a web article by Bhaduri (2005) in which the author discuss about the use of CRM for banking sector in developing countries ; the author describe that CRM is variously misunderstood as a fancy sales strategy, an expensive software product, or even a new method of data collection. It is none of these. CRM is a simple philosophy that places the customer at the heart of a business organisation’s processes, activities and culture to improve his/her satisfaction of service and in turn it will maximize the profits for the organiusation. Bhaduri (2005) further argues that CRM made bankers realize that the purpose of their business is to “create and keep a customer” and

1. From Artificial Intelligence
to Financial Inclusion
Moscow 3 april 2019

2. AI Is Going To Shape All Of What We Do

3. Conversations reveal а lack of common definitions for Al — this is
an example of the ‘AI effect'
No one can agree on what “artificial intelligence“ is or isn't
Machine
learning isn’t
AI!
Machine
learning is a
subset of AI
AI is really
about
augmented
intelligence
Cognitive is the
human aspect
of AI
What we're
talking about is
deep learning –
no one has
achieved AI
Al effect

4. While no one can agree on what AI is, people clearly mean
something when they use the term
А suite of technologies, enabled by adaptive predictive power and exhibiting some degree of autonomous learning, that have made
dramatic advances in our ability to use machines to automate and enhance:
Many applications of AI-driven technology use a combination of the above automations and enhancements

5. Al does not exist in а vacuum — its capabilities will be intertwined
with the development of all other technological innovations
Advances in any one technology will increase the capabilities of an other technologies that interact with it

6. Al is altering the attributes necessary to build а successful business
in financial services
And creates а new wave of transformation across the global financial services industry
Scale of assets Scale of data
Mass production
Exclusivity of relationships
High switching costs
Dependence on human ingenuity
Tailored experiences
Optimization and matching
High retention benefits
Value of augmented performance
This is placing legacy business models under pressure from those whose businesses are built around these new attributes

7. Al presents Banks and Fintechs with the opportunity to change
their businesses in а multitude of ways ranging from incremental
improvement to complete reinvention
Doing the same things, better Doing something radically different
Leaner, faster operations Tailored products and advice Smarter decision-making New value propositions
from relatively conservative efforts to improve existing processes to bold bets on new capabilities and business models

8. Augmented intelligence
(bots/agents, robo-advisors,
intelligent automation)
Micro Personalization
of Financial Experiences
Branch of the Future
(Virtual Presence, Augmented
Reality, Seamless life
integration)
Digital ledgers and blockchain
Fintech partnerships
Predictive analytics, IoT, big data
Advisory
Payments
Cards
Deposits
and lending
Non-Traditional Services
Social Networks
How will Banks Innovate and Evolve?