Customer Relationship Management

Customers tend to have products and services from multiple product areas across a Bank. It is important to bridge these divisions both from the Bank’s perspective – so that a group wide view of customer risk can be assembled – and from a customer perspective – so that a single customer isn’t faced with myriad service personnel.

Given these requirements CRM is a vital part of Banking Operations. We have disaggregated this operational area into three key units.

  • Customer Risk
  • Customer Static
  • Contact Management


Customer Risk

For Credit Products this relates to how much the Group is owed by a customer and what the risk of default is. This should be managed outside of the individual lending product areas;

  • Personal – Banking, Credit Cards, Mortgages
  • Business – Banking, Asset Finance, Capital Markets

Similarly once a customer is in default, the recovery process should be undertaken on a Group-wide view.

For Insurance products this relates to the expected value of claims aggregated over the different insurance products.

For both classes of product there is also an assessment as to the likelihood of fraud.

Customer Static

Master information relating to customer data ought to be clearly known.

  • Personal – e.g. name and address, relationships
  • Business – e.g. legal entity hierarchies

This data is typically stored many times in many product engines in a large financial services group, normally incorrectly in some of them.

Contact Management

An individual customer talks to one institution/brand about a number of products and services and will do so through several delivery channels and will probably have to talk to multiple departments. Furthermore, “things” may happen to the customer (e.g. receipt of a very large payment). Bringing together the entire customer “contacts” and “events” into a group level customer contact system is an important aspect of providing service.
Read articles in this category:

  • How Are Banks Seriously Going To Address The Rampant Rise In Fraud? (July 03rd, 2019):
    Fraud is rising – could a digital personality be used to make real-time decisions to counter fraud?
  • How can Banks make money from GDPR (May 06th, 2018):
    GDPR is a sprawling regulation and buried within it are three key IT challenges which if approached in the right manner will not only create GDPR compliance, but will also generate value for the bank.
  • CDFIs as an Alternative to Payday Lenders (March 08th, 2016):
    What will stop CDFIs filling the gap left by the withdrawal of payday lenders?
  • Impact of the Recast DGSD upon UK Banks Part 1 (November 03rd, 2014):
    This article sets out the proposed changes facing UK Banks as a result of the PRA’s Consultation Paper on the recast EU DGSD.
  • Personal Data Management and Identity Assurance in Banks (June 19th, 2014):
    What opportunities exist for banks in light of the rise of personal data management and identity assurance technologies.
  • Banking Disintegration – A New Industry? (August 15th, 2010):
    Discussion of banking disintegration, focussing on the various complexities arising from the partial divestment of RBS branches to the Santander Group. The specific problems of divestment might spawn a new IT service industry.
  • Appendix to the Credit Crunch article (July 21st, 2008):
    This Appendix highlights why Banks lend to each other and the three means that are used: (1) Money Market Loan and Deposits; (2) Syndicated Loans and Loan Markets; (3) Securitisation and CDOs.
  • The Credit Crunch – so what for IT and Operations? (July 20th, 2008):
    What has happened to Interbank markets over the last 6 months, why has this happened and what is the expected impact on IT and Operations. There are two main areas of change as a result of the credit crunch for IT and Operations; (1) Stop / Run down programmes, and (2) New MI based on ...
  • Quantitative Example (June 27th, 2003):
    This report gives a summary of Basel II and describes the regulatory imperatives for better MI on Risk.
  • What is Basel II? (June 27th, 2003):
    This report gives a summary of Basel II and describes the regulatory imperatives for better MI on Risk.
  • MI Systems Architecture Implications of Basel II and IAS 39 (June 26th, 2003):
    This report describes the current MI systems of UK Clearing Banks and relates the requirements of Basel II and IAS 39 to the gaps in these systems.
  • The Risk Market (June 23rd, 2003):
    This article is based around an interview between Ray O’Brien – managing director of risk consultancy E1Works – and the HowBanksWork team. The interview provides some interesting views on the risk work currently developing in the major Banks and what the solutions are likely to be.
  • Customers and Recent Banking Strategies (April 27th, 2003):
    This report principally examines how recent banking strategies are likely to affect customers. This is illustrated with two exmaples of how a customer might perceive the changes within a bank.
  • Banking Operations Strategies & Technologies: Example Scenarios (April 27th, 2003):
    Brings together all the ideas distilled in the Banking Operations Strategies & Technologies report in a couple of illustrative scenarios. These show how some very common banking business processes will look if the strategies discussed are fully implemented.
  • Banking Operations Strategies & Technologies (April 27th, 2003):
    Detailed examination of the key strategies and technologies currently being pursued in UK Banking Operations departments. These trends include centralising processing, outsourcing and the separation of service and processing.