A Short Guide on Banking CRM: Why Financial Institutions Need It Now


For decades, customers dreaded their visits to the bank.

Today, most banking work is done on the mobile phone or through the customer’s desktop, iPad, or laptop. Digitalization of banks and banking services has made bank visits obsolete except in a few unavoidable cases.

This is great for everybody involved, but it comes with a pitfall. Bank managers and sales reps no longer have direct, personal access to their customers.

There’s no “Hi sir, welcome ma’am, would you like to take a look at our new credit card offer?” sales pitch with a smile.

After the Covid hit, even fewer people are stepping out for work that can be done online. What does this mean for banking sales?

Somebody moved your cheese.

It’s time to adapt!

Banking CRM, or customer relationship management, is how you can keep up with the changing times. While banking CRM software would find some uptake among the largest financial services firms 10 years ago, they’re virtually a necessity today.

So in this blog, we’ll discuss how CRM in the banking sector can help every institution in the industry, be it large or small.

What Is CRM in the Banking Sector?

A banking CRM software is a platform that enables banks to implement customer-centric strategies. It does this with the help of machine learning and automation, and a whole set of software applications that are integrated well and work as one.

It acts as a unified solution for keeping records of every employee, customer, and transaction. More importantly, it can predict customer behavior and the outcome of sales pipelines, with revenue projections per product or task.

Banking CRM software can do much more — from scheduling appointments to managing leads and generating performance reports, all from one dashboard.

EngageBay’s Sales CRM takes care of your routine operations so that your sales team can focus on the real job.

What Are the Benefits of CRM in Banking?

CRM in the banking industry can help banks better manage their customers and understand their needs to provide solutions right away. It has many benefits to offer, as we’ve detailed below.

Increased Lead Conversion

A banking CRM helps you keep track of your existing customers’ activities and enables you to create upsell and cross-sell opportunities. 

In other words, it helps you sell an additional product or service to a customer, of a similar or higher value.

After all, there’s a higher probability of converting existing customers than acquiring new ones. 

Increased Productivity

Successfully implementing a CRM solution for banking services can be marvelous for sales and employee productivity.

For starters, it can help cut costs by minimizing repetitive administrative tasks such as data entryIt streamlines your entire operational process, keeping every person involved updated on the progress in real-time.

Thanks to the software taking up most of the work, bankers can handle more transactions in less time

Better Brand Image Online

Today, marketing has come a long way from the traditional approach of billboards and newspaper ads.

Every business is going digital and trying to build an online presence across various social media platforms. Even though this allows financial institutions to reach a mass audience with low advertising costs, it has its own challenges. 

People constantly talk about brands online, and one frustrated customer can ruin your brand’s reputation. Banking customers are more likely to share their bad experiences online than good ones, which can be a nightmare for bank managers.

A banking CRM software helps manage your online reputation by monitoring the web for conversations about your bank and its services. It enables you to respond quickly to any problem before it blows up and becomes a cause for embarrassment. 

Enhanced Communication with Customers

Investment banking CRM software keeps track of all conversations happening across multiple channels, including emails, calls, social media platforms, etc. 

It updates the information in real-time so that any salesperson trying to talk to a potential client can pick up from the last conversation. 

Thus, every salesperson stays on the same page, avoiding any confusion and ensuring that no leads fall through the cracks. 

Inter-Department Data Tracking

Collecting and analyzing data can really help formulate business marketing campaigns, products, and services to help attract more customers. 

Banking CRM tracks data from several departments, including customer service, cash deposit department, and others.

It then analyzes the data to understand customers’ needs in-depth and provide personalized services

For instance, you can find out the top concerns of your potential clients and work on finding the right solutions.

Increased Customer Loyalty

96% of consumers say that customer service is a primary factor in deciding whether to do business with the company again. 

Great service can keep customers coming back and increase your customer retention rate. 

But now, how does banking CRM software help here?

CRM ticketing system helps prioritize the issues that need urgent response. It ensures that all customer issues are resolved at the earliest. 

Besides, you can use the system to personalize your response, turning problems into opportunities for better customer satisfaction. 

EngageBay offers custom ticket views that help customer support agents deliver best-in-class service.

Banking CRM Use Cases

A banking CRM has multiple uses in different facets of business — marketing, sales, and customer service

Banks need CRM not just to manage customer information but also to acquire more customers. 

Banking CRM software helps financial institutes anticipate market needs and understand the scope of improvement.

Let’s look at different use cases of banking CRM software now. 

Provide Personalization and New Opportunities

A banking CRM solution provides customer service representatives with the tools needed to provide value to their customers. 

For instance, the CRM platform can remind you of the upcoming birthdays of your customers.

The sales reps can reach out to wish them on their birthdays and offer financial advice on their retirement plans or investment plans. 

Thus, banks can build personal connections and enhance customer experience while also increasing their revenue. 

Besides, CRM enables you to offer personalized services to a large audience — allowing for faster banking and web experience to keep your customers happy.

For instance, you can set your CRM software to send a personalized, attractive email or SMS to wish all your customers on their birthdays, without your sales reps having to lift a finger again.

Run Segmented Marketing

With increasing competition, it makes sense to provide relevant offerings and cross-sell opportunities that resonate with a group of people. 

That’s why it’s crucial to segment your audience and run targeted, personalized campaigns. 

Banking CRM software like EngageBay enable you to narrow down your marketing outreach to specific groups based on their interests or behavior.

Apart from demographic factors, you can segment customers based on page clicks, new accounts, and much more. 

Redefining Banking Processes

One of the main use cases of banking CRM software is that it enables you to make decisions based on data rather than your gut feelings. 

It generates standardized and customized reports to give you insights into your banking operations and identify gaps. 

For instance, you can easily identify which services are the most profitable and popular amongst your audience. 

You can then run paid campaigns online to promote those services and attract new customers. 

Similarly, you can figure out which service is not working or if you should change the target audience for a particular product. 

Using data, you can make a concrete strategy and increase your chances of success. 

Besides, it helps automate workflow across all branches. 

It sends out an alert when a customer hits a particular milestone and is ready for more product or service recommendations. 

It helps your sales team sell better and increase customer lifetime value.

Challenges of CRM in the Banking Industry

Banking CRM is essential to retain customers. 

With the ever-increasing demands of customers, it’s practically impossible to run a banking institution without CRM tools. 

However, implementing CRM solutions has its own challenges, and the banking industry is no exception. 

i. Data Security 

One of the biggest challenges for banks today is data security and controlled access. 

Customers trust a bank to keep their information safe. Thus, customer data needs to be protected against cyberattacks.

If the data gets leaked, it can create a bad reputation for your bank in the market. But the good news is that CRM providers are aware of these concerns and have deployed high-security measures to address them. 

The banking industry is highly sensitive to data leaks and thus, needs an extra level of protection. It also needs to have access control over these records so that not every employee can read them. 

Thus, modern CRM providers are instituting role-based access restrictions, encrypted transmissions, data center backups, and session time-outs, to ensure a high level of information security. 

ii. Integration With the Existing Tech Stack

Another challenge of the banking institution is the integration of CRM software with the existing IT infrastructure. 

Most legacy systems weren’t built to integrate with modern CRM systems. 

Thus, it can be a complicated process to combine two tools that aren’t compatible with each other. The best approach here is to be upfront with your CRM vendors and ask them about the various integration options. 

Find out how much it will cost, and confirm if the new system will sync with your old solutions. 

How to Choose the Right Banking CRM?

Even before you start shortlisting CRM providers, make a list of your requirements. 

With so many options available in the market, it’s easy to get swayed away from your priorities. 

The primary rule to choosing a banking CRM is to know what you wish to accomplish by using a CRM solution. Once that’s done, a few other factors play a role in picking the right banking CRM solution. 

On-premise or Cloud 

Any CRM software can be deployed on your own server or cloud storage

Based on the deployment method, there are two types of banking CRM solutions: 

Software-as-as-Service (SaaS)

This software is hosted on your provider’s server. You get online access through a website or mobile application, or both. 

The best part of a cloud solution is that it saves you the investment of upfront infrastructure costs. 

Traditional System

Traditional or legacy systems are fully under your institution’s control. It is a licensed program that is placed on your server to start running. 

In this case, you need to set up an IT infrastructure and have resources to maintain the system. The advantage is that it can handle a massive amount of data. 

Data Import

Another important thing to consider is CRM data migration

While integrating a CRM software with your banking system, it’s crucial that the CRM tool automatically gathers all data using its in-built import module. 

The primary reason to adopt CRM software for banks is to automate mundane tasks. You don’t want to invest time in manually moving data from different systems. 

Choose a CRM software that enables a quick and simple process of data import. 


CRM should enable seamless integration with various third-party platforms to expand its functionalities. 

For instance, it’s important to connect with telephone or calling software to allow tracking of all calls and get a customer’s personal info right during the call. 

Similarly, it needs to integrate with other systems like accounting software, your different websites, and other applications. 

With custom solutions, you can discuss and specify all your exact requirements. 

EngageBay offers integrations with some of the top players in the market, including Zapier, Xero, Sendgrid, and much more. 

engageBay CRM integration


Pricing is an important factor to consider while choosing a commercial CRM software. It generally involves the cost of the product, support and maintenance, software upgrading, and data migration. 

Many CRM vendors even charge additional costs for training and onboarding or if you need extra storage. 

Familiarize yourself with all types of costs involved so that it doesn’t burn a hole in your pocket at a later stage. The cost of CRM in the banking sector should justify the ROI you are getting from it. 

Wrap Up 

CRM tools can be extremely powerful for any business today. Banks are a customer-driven industry and banking CRM software is the need-of-the-hour for customer acquisition, satisfaction, and retention.

You can find banking CRM software solutions specially designed for the sector or an all-in-one CRM platform for any industry like EngageBay.

When you’re ready to make a call on buying a CRM tool, make sure the platform addresses all your banking priorities, sales needs, and customer satisfaction strategy requirements.

If you’d like our help in sorting through the crowd, here’s our blog on three wonderful and popular CRM software.

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